| 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. The conversation is front of mind for good reason. Nethermind, software that's used much less frequently than Geth, had its own bug that caused validators using it to be pulled offline for several hours on Jan. 21. But because Geth represents more than two-thirds of all validators on the network, hypothetically a bug in that software could cause Ethereum to stop finalizing — meaning the chain would stop processing transactions altogether, investors would start to lose their deposits and the network could potentially split in two. "Many incorrectly assume that in the event of a bug, a patch will be released in a few hours that will solve the issue, losing very little ETH in the process," Lachlan Feeney, CEO of blockchain consultancy Labrys, wrote in a blog post last month. "With this knowledge, it seems crazy that anyone is still running Geth whilst it holds a supermajority." Coinbase, Binance and Kraken are among the validators who rely solely on Geth for their Ethereum services, according to an industry tracker that monitors the network's diversity risk. These exchanges operate a staking-as-a-service business model, whereby customers give them their tokens to lock up on Ethereum on their behalf. Coinbase and Binance, the second and third largest validators on Ethereum, manage nearly $13 billion in staked Ether coins combined, according to StakingRewards. Since the Nethermind bug, criticism about validators' lack of client software diversity has been building — and some providers have already responded. Around 84% of validators used Geth at the time of the incident, a figure that's dropped to 78% in under a fortnight. Coinbase and Kraken are both exploring new smaller clients for their platforms, spokespeople for the firms said. Binance didn't return a request for comment. Given that one of blockchain technology's key advantages is its decentralization, it seems ironic that industry participants are now grappling with the same diversification issue with which other sectors are all too familiar. With Ethereum nearing a decade since it first went live, how much of that can we still chalk up to teething problems? | 
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