Vitalik Buterin unveils the Ethereum Staking model
Ethereum founder Vitalik Buterin has laid out a series of solutions to strengthen the decentralization of staking pools and protocols. It also provides solutions to strengthen security against potential attacks on these protocols.
These suggestions follow earlier suggestions shared by Buterin about possible changes to the Ethereum network.
Solving decentralized issues
Buterin's recommendations directly address the challenges of the rush process. It addresses the risk of centralization between node operators and the burden on mutual understanding.
The process of electing node operators in different staking pools is, according to Buterin, problematic for decentralization. The current Layer 1 (L1) consensus mechanism is also under pressure to authorize transactions.
To overcome these challenges, Buterin advocates adopting a two-tier staking system, similar to the models used by projects such as Rocketpool and Lido. This system introduces cross operators and delegates as key participants.
Node operators act as validators, running nodes to create new blocks and pooling a certain amount of ETH for staking.
Delegates, on the other hand, become pool members by pooling their assets with their chosen node operators. In this setup, delegates get the autonomy to choose their preferred node operators.
Improving the security of the stacking pool
Apart from addressing centralization concerns, the proposed two-tier system promises to strengthen security in storage pools. The system creates a serious barrier to attackers by allowing delegates to determine node operators.
Those who want to become a node operator without the support of the representative can withdraw a significant part of their ETH, which can be up to 1/3 of the total stake, which can reach more than 2.08 million ETH. Therefore, any hacking attempt will be of great value to the attacker.
Buterin underlined that implementing these recommendations could alleviate issues affecting the Ethereum Layer 1 staking protocol. It empowers stakeholders to choose their preferred nodes, which contributes to a decentralized and consensus-based system.
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Moreover, the proposed model significantly reduces the required signatures from 800,000 to 10,000, which encourages the addition of cross-verifiers.
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