Ethereum co-founder Buterin: “Staking mechanism needs major overhaul”

Concerned about centralization of staking

Vitalik Buterin, co-founder of the crypto asset (virtual currency) Ethereum, mentioned “plans to redesign staking and solve issues that affect performance” at the Ethereum Foundation’s Devconnect in Turkey.

Buterin pointed out that the centralization of nodes in staking is “not healthy.” However, this situation is an opportunity to redesign the staking system to alleviate the problem, while making it clear that the company aims to improve efficiency and decentralization.

He expressed concern about the current situation where the concentration of nodes is accelerating in the largest liquid staking protocols, such as Lido Finance and Rocket Pool. Having large-scale control in the hands of a few entities can be a risk to networks.

Buterin said he is also considering integrating Liquid Staking into Ethereum, as this issue also affects the decentralization principles that underpin the network.

scaling problem

When it comes to scaling networks, Buterin said the pendulum has “swung back” toward approaches that leverage off-chain data in general.

One reason for this is that demand is so high in the short to medium term that the mainnet’s data capacity cannot keep up. It was also pointed out that the off-chain security level was higher than expected. A good example of this is the potential of Plasma, a scaling solution co-invented by Joseph Poon and Buterin in 2017.

connection:About “Plasma”, a solution to Ethereum’s remittance delay problem

In 2018, attempts were made to put Plasma into practical use, including various Plasma Cash products, but it seems that no major progress was made.

However, Mr. Buterin said that by using ZK-SNARK (zero knowledge proof), there is a possibility that the “exit game”, which was a problem for Plasma, can be solved more simply. It also appears to be more compatible with complex systems such as EVM.

He also mentioned Ethereum’s next upgrade, “Dencun,” and emphasized the importance of EIP-4844, “Proto-Danksharding,” which is the most significant change in it. Once completed, this upgrade will expand data map space to 16 megabytes per slot, a major development for the network.

connection:What are the importance and benefits of Ethereum’s next upgrade “Dencun”?

Other plans

Mr. Buterin also mentioned the UTXO (Unspent Transaction Output) payment model used by Bitcoin and Cardano. After presenting the idea of ​​integrating similar functionality into Ethereum, Cardano founder Charles Hoskinson sarcastically commented on X that “Ethereum 3 will solve everything.”

No worries, Ethereum 3 will have it all sorted! https://t.co/Td0Hm58eic

— Charles Hoskinson (@IOHK_Charles) November 24, 2023

Buterin also mentioned other plans being implemented: private mempools to bring security and privacy to the network, and ERC-4337 integration.

ERC-4337 relates to “account abstraction,” which is expected to give users greater control over their accounts and make them more secure.

connection:Visa’s Ethereum Experiment Report Explores Trading Capabilities Through ‘Account Abstraction’

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