Germany has the second highest concentration of ETH nodes in the world
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 provides a structural overview of the country’s blockchain ecosystem, also indicated that Germany accounts for nearly 6% of Europe’s blockchain funding.
The European country has a share of 22.8% of all Ethereum nodes, while the United States leads with 45.3%. Both countries run more than half of the entire Ethereum ecosystem, which is worrying given the need for optimal decentralization.
According to the report, geographic decentralization means so much to a network’s overall decentralization. Furthermore, the risk of censoring or controlling transactions will be too high where only a few countries dominate validator nodes.
Ethereum’s mission is to become the world’s leading computer for smart contracts, which cannot happen if validation is in the hands of a few players.
Even better, the numbers have grown since last year. The percentage share of Ethereum validators in the United States was 36.92% in 2021, while Germany’s share was 21.16%.
Despite the network’s perpetual growth, the concentration of validators still appears to be higher in certain regions.
Germany accounts for 6% of Europe’s blockchain financing
In 2022 alone, Germany’s blockchain projects raised roughly $8 billion. The total number of projects receiving support reached 220, while the number of unicorns in the European nation was 34.
The report indicates that the country received 2.4% of the world’s venture funding and 6% of Europe’s blockchain funding. Interestingly, the value of venture funding on a quarter-over-quarter basis fell by 50%, while the number of deals rose by 10%.
Equally important, the largest share of funding went to early-stage blockchain companies, which accounted for 72% of all funding deals.
Most of 2022’s blockchain funding went to infrastructure and development innovations, to which VCs allocated over 55% of all funding. According to the pie chart below, DeFi came in second with a percentage funding of 27%, followed by NFTs at 6%.
