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Vitalik Buterin Unveils Network Manipulation. Ethereum At Crossroads: High Stakes In Gas Fees As Power Concentrates Among Few

Jakub Motyka By Jakub Motyka Dec 13, 2023 #Ethereum (ETH)
Ethereum (ETH) Fee Manipulation

✍️ 13 December, 2023 – 13:56 👤 Editor: Jakub Motyka

  • Vitalik Buterin and former Ethereum (ETH) advisor Steven Nerayoff hint that “disguised whales” are behind the inflated gas fees on the Ethereum network.
  • According to them, these influential players reaping significant rewards from the high fees, indicating a concentration of power and mining within the network.
  • The latest news about cryptos on our Telegram channel.

Vitalik Buterin, the co-founder of Ethereum (ETH), has hinted that the exorbitant gas fees on the Ethereum network are largely driven by a small group of influential actors, often referred to as “disguised whales“, who significantly benefit from these fees.

This assertion highlights the concentration of power and rewards in the hands of a few and echoes the statements made by Steven Nerayoff, a former Ethereum advisor. In a post on X (formerly Twitter), Nerayoff explained that when gas fees skyrocket, it is not the average users but these big players who reap the rewards, especially if ownership and mining within the network are as concentrated as suspected:

Buterin further elaborated on his warning by highlighting the risk of “capture” in the Ethereum (ETH) network, a scenario where a small group of actors gains enough power in the decision-making process to ensure things go their way, often against the interests of the broader community.

He compared this to a kind of 51% attack, where these actors could censor all transactions except for those with high fees, benefiting the censors while the blockchain continues to function as long as people are willing to pay these high fees.

This issue came to light in early December when gas fees on Ethereum spiked following the sudden popularity of a new NFT collection called Buterin Cards, reminiscent of times when Ethereum became unusable due to soaring fees.

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Jakub Motyka

By Jakub Motyka

Jakub Motyka es un editor y experto en criptomonedas con un perfil profesional en el campo de las finanzas digitales y la tecnología blockchain. Su carrera cripto incluye una amplia experiencia escribiendo y editando contenidos relacionados con el mundo de las criptomonedas, abarcando una amplia gama de temas desde análisis técnico y de mercado hasta desarrollos tecnológicos y tendencias emergentes en la industria.

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