Germany has the second highest concentration of ETH nodes in the world

2022-11-28 16:15

Germany operates one of the world’s largest networks of Ethereum validators, according to the 2022 German Blockchain report published by CV VC Labs.

The report which offers a structural overview of the country’s blockchain ecosystem, also indicated Germany accounts for nearly 6% of Europe’s blockchain funding. 

The European country has a 22.8% share of all Ethereum nodes, while the United States leads with 45.3%. Both countries operate more than half of the entire Ethereum ecosystem, which is concerning given the need for optimal decentralization. 

According to the report, geographical decentralization means so much for a network’s overall decentralization. Furthermore, the risk of censoring or controlling transactions would be too high where only a few countries dominate validator nodes.

Ethereum’s mission is to become the world’s leading computer of smart contracts, which cannot happen if validation is in the hands of a few players. 

Better yet, the numbers have been growing since last year. The percentage share of Ethereum validators in the U.S. was 36.92% in 2021, while Germany’s share stood at 21.16%.

Despite the network’s perpetual growth, the concentration of validators still appears to be higher in particular regions. 

Germany accounts for 6% of Europe’s blockchain funding

In 2022 alone, Germany’s blockchain projects raised approximately $8 billion.  The total number of projects receiving funding came to 220, while the number of unicorns in the European nation totaled 34.

The report indicates the country received 2.4% of the world’s venture funding and 6% of Europe’s blockchain funding. Interestingly, venture funding value on a quarter-over-quarter basis fell by 50%, whereas deal count soared by 10%. 

Equally important, the biggest share of funding went to early-stage blockchain enterprises, which made up 72% of all funding deals. 

Germany blockchain report: Germany’s percentage blockchain funding relative to the world and Europe

Most of 2022’s blockchain funding went to innovations in Infrastructure and Development, to which VCs allocated over 55% of all funding. According to the pie chart below, DeFi came second with a percentage funding of 27%, followed by NFTs at 6%.

 

Germany blockchain funding by sector

The post Germany has the second highest concentration of ETH nodes in the world appeared first on CryptoSlate.

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