Ethereum likes to bill itself as the world’s decentralized computer. But according to research from the Cambridge Centre for Alternative Finance (CCAF), nearly a third of that computer lives in one country, and a lot of it runs on Amazon’s servers.
The CCAF found that 31% of global Ethereum beacon node activity is based in the United States, with infrastructure heavily clustered on three cloud providers: Amazon Web Services (AWS), Hetzner, and OVH.
The cloud concentration problem
Ethereum currently boasts more than 880,000 validators, a number that has grown substantially since the network’s transition to proof-of-stake during the Merge in September 2022. In earlier analyses from 2022, AWS alone was found to host over 50% of Ethereum nodes. The reliance on three major cloud providers, AWS, Hetzner, and OVH, means that over two-thirds of total node share has at times been concentrated among just those platforms.
Historical data from the CCAF makes the trend clearer. As recently as November 2023, the US accounted for 37.2% of Ethereum nodes. Europe hosted 43.3%, and North America broadly represented 40.5%. The current 31% figure for US-based beacon node activity suggests some geographic redistribution has occurred.
