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Amazon/Digital Ocean can shut ETH nodes hosted on their servers to comply with OFAC sanctions

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Right now, ETH dapps are censoring addresses (on the front-end for now), while miners like EtherMine are choosing which transactions to include in their blocks, so that they dont inadvertently include TC transactions. All of these are to comply with the OFAC sanctions.

To complete this cycle, AWS which hosts a huge number of Ethereum nodes can shut these nodes down, similarly to adhere with the sanctions.

If a node hosted on AWS processes a transaction from a sanctioned address, that means Amazon is potentially assisting in evasion of sanctions. The government could go after Amazon. The same reason why EtherMine is choosing which transactions to include in a block can be used by Amazon to shut all ETH nodes down.

Unlike a mining pool, AWS cannot choose which transactions to include or exclude. All transactions pass through a node, and some may be validated on the AWS node too. So AWS has no option but to stop all Ethereum nodes from being hosted on their servers.

This can be done by every other cloud hosting/vps company, including digital ocean. Any US company will have to adhere to the sanctions.

What will be the impact to Ethereum from this?

submitted by /u/Dirt-Purple
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