Morgan Stanley (MS) stated in a research report on Wednesday that the crypto ecosystem is becoming less decentralized. Although the underlying blockchains are decentralized, as crypto regulation evolves, the need to run a large portion of the blockchain on a single or small group of cloud providers becomes a potential risk, according to the report. According to the report, 65% of Ethereum’s nodes are cloud-hosted, with half of these using Amazon Web Services (AWS). This could become a problem if certain service providers decide to censor some participants or crypto products, or if there are lengthy server outages.
