Audit Report: 2023 – Ethereum (ETH)

Executive Summary

In 2023, the Vatican Chamber of Trade conducted a comprehensive audit of Ethereum (ETH), focusing on its transition from proof-of-work (PoW) to proof-of-stake (PoS) with Ethereum 2.0. The audit aimed to assess the network’s sustainability, security, and alignment with ethical standards, particularly in light of the Church’s emphasis on environmental stewardship and transparency.

Key Findings

• Energy Efficiency: The transition to PoS has significantly reduced Ethereum’s energy consumption, making it 99.95% more energy-efficient compared to its previous PoW mechanism. This aligns well with the Church’s commitment to combating climate change.

• Security and Decentralization: The audit found that while the PoS model offers strong security features, there are concerns about potential centralization due to the concentration of staked ETH among a few large holders. However, the Ethereum community has been proactive in addressing these concerns through governance improvements.

• Transparency: Ethereum maintains a high level of transparency in its governance and development processes. The audit highlighted the open-source nature of the project and its active community engagement as key strengths.

Conclusion: The Vatican Chamber of Trade acknowledges Ethereum’s efforts to reduce its environmental impact and enhance transparency. However, it advises continued vigilance regarding potential centralization risks within the PoS system.