Coinbase, Kraken Grapple With Ethereum’s Diversification Problem

In this edition of the Bloomberg Crypto newsletter, Emily Nicolle sheds light on one of Ethereum’s biggest challenges.

Platforms like Coinbase, Lido Finance and Binance, which run the biggest staking services that help keep the $278 billion Ethereum network running, are reckoning with their dependence on a single piece of software. Nearly 80% of all Ethereum validators rely on a software client called Geth to connect them to the network — and experts are warning that the impact of a bug, if one were to be found, could be catastrophic.