Ethereum’s Future: How Vitalik Buterin Plans to Transform Staking and Decentralization

Vitalik Buterin has outlined several areas for improvement in Ethereum’s Proof of Stake (PoS) network, particularly focusing on staking accessibility and block finalization speed.

In a recent blog post, Buterin highlighted that while Ethereum’s transition from Proof of Work (PoW) to PoS was a significant milestone, issues remain. One primary concern is the high staking requirement of 32 ETH, which Buterin proposes lowering to 1 ETH to encourage solo staking. He believes that reducing this barrier could promote decentralization by allowing more individuals to participate.

Possible futures of the Ethereum protocol, part 1: the Mergehttps://t.co/JycODdM4wW

— vitalik.eth (@VitalikButerin) October 14, 2024

Buterin pointed out that Ethereum’s current block finalization time of around 15 minutes is another area needing improvement. He proposed reducing finalization to a single slot of about 12 seconds. However, this poses a challenge in balancing the number of validators with maintaining low node overhead. More validators lead to increased decentralization but can slow down verification times unless supported by powerful nodes.

Buterin presented three potential solutions to address these challenges. One involves improving signature aggregation using techniques like ZK-SNARKs, allowing the network to efficiently handle signatures from millions of validators. The second approach suggests using orbit committees, where only a subset of validators finalizes blocks, rotating committee members to maintain security. The third option is introducing a two-tiered staking system, with higher-tier stakers handling economic finality, while lower-tier stakers delegate their stakes to the higher tier.

Buterin’s Four Development Paths

Buterin also outlined four possible paths for Ethereum’s future development. The first option is to leave the network as it is, with no changes to current security and decentralization. The second is implementing Orbit SSF, which would adjust assumptions around economic finality. The third path, brute-force SSF, focuses on improving the handling of millions of validator signatures through more advanced technology. The fourth option introduces the two-tiered staking system, though this may carry risks of centralization.

Additionally, Buterin discussed Ethereum’s vulnerability to 51% attacks and the current reliance on the social layer for recovery. He suggested automating parts of this recovery process and increasing the quorum threshold for block finality from 67% to 80%, which could give more weight to solo stakers.

Buterin also mentioned that more advanced features like Single Secret Leader Election (SSLE) could be implemented after Ethereum adopts Zero-Knowledge Proofs (ZKPs).

Read More

• Buterin Proposes Standards for Ethereum Alignment
• Vitalik Buterin Proposes Increasing Blob Count for Ethereum Network—Here’s Why
• Ethereum’s Vitalik Buterin Responds to Claims That Crypto Market Maturity Has Arrived

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.