Ethereum 2.0 node validator Rocket Pool stated that the only hurdle to regulatory oversight of the network after The Merge could be the decentralization of validators. The merger should take place this week.

As the hour of X approaches, there is increasing excitement in the cryptocurrency community about what the security profile of the ETH network will be like after the transition to PoS. Some players in the digital market are raising concerns that the switch from miners to validators could bring the network under government control. It means that there are certain security risks and trust issues.

Community members admit that after the transition, state regulators may force the validators of the Ethereum network to censor unauthorized transactions at the protocol level. Of equal concern was the information that key blockchain infrastructure providers, such as Alchemy and Infura, and several ETH protocols, had previously imposed bans on the infamous Tornado Cash project.

“The only way to counter this scenario is to make the Ethereum validator network decentralized enough – both topologically and geographically – to make interference almost impossible,” Rocket Pool managing director Darren Langley said.

And FTX CEO Sam Bankman-Fried, on the eve of The Merge, theorized that the transition would benefit ETH in the long run, but you need to prepare for some turbulence. Not all crypto projects will be able to survive the merger.

“In the long term, the merger will significantly speed up and reduce the transaction processing cost. But the merge, like all big transitions, will be a little bumpy initially. There will be some dirty game. I think this is inevitable both in the long term and perhaps even in the medium term,” Bankman-Fried warned.

Earlier, Bank of America analysts Alkesh Shah and Andrew Moss expressed the opinion that the expected transition of Ethereum this week could provoke an increase in interest in the project from institutional investors.

“A significant reduction in energy consumption after the merger may allow some institutional investors to purchase the token. Previously, [they] were prohibited from buying tokens running on blockchains using PoW consensus mechanisms,” Bank of America said in an analytical note.