Vitalik Buterin, co-founder of Ethereum, has put forward a proposal to address validation failures that occur in correlation with each other. This system aims to make blockchain more decentralized. A study conducted by Ethereum Foundation analyst Toni Wahrstatter revealed that economies of scale can lead to centralization within blockchain networks. To remedy this issue, Buterin suggests imposing penalties on validators whose related failures occur under the same control.
The proposal aims to create a more balanced ecosystem, allowing smaller validators to participate. It believes that validators in the same group face similar risks of failure due to shared resources. This setup imposes penalties by adjusting the average for missed affirmations. The goal is to prevent large entities from controlling too many validators. Consequently, it promotes a network structure with decentralized control.
Solo Staking Gains Edge Over Pooling
Critics argue against the concentration of network management through stake pools, which typically control large assets. For instance, Lido is a notable stake pool with approximately $34 billion worth of assets. However, Buterin’s proposal could shift the current landscape by introducing stricter penalties for correlation failures in these pools. This change might make solo staking a more viable and cost-effective alternative to pooling.
Toni Wahrstätter did an impressive job building upon and broadening the analysis I presented last month regarding cross-validator correlations and modifying validator rewards to promote a more decentralized system.
— vitalik.eth (@VitalikButerin) April 9, 2024
The modification encourages individual stakers in decision-making. It takes into account the potential risks of staking pools related to synchronized infrastructure malfunctions. The penalty system is designed to diminish the profitability of large-scale staking operations. It supports small, autonomous validators instead. This could lead to a more rational and robust network structure.
VanEck CEO Low on Ethereum ETF Hopes
The introduction of the proposal aligns with increasing excitement about potential Ethereum ETF acceptance. Yet, companies like VanEck and CoinShares voice doubts over the approval of a spot Ethereum ETF. The US Securities and Exchange Commission (SEC) has established a May 23 deadline to make a decision. Nevertheless, Jan Van Eck’s latest comments from VanEck suggest a diminished chance for quick approval.
The SEC’s postponement of Ether ETF applications from major companies like BlackRock and Fidelity increases the ambiguity surrounding the issue. Van Eck’s comments at the Paris Blockchain Week reveal a cautious approach towards regulatory acceptance, which highlights the larger hurdles cryptocurrency ETFs face in securing approval.
Worldcoin (WLD) Bows To Pressure, Implements More Privacy Features
Read More
- SOL PREDICTION. SOL cryptocurrency
- ENA PREDICTION. ENA cryptocurrency
- USD PHP PREDICTION
- BTC PREDICTION. BTC cryptocurrency
- USD ZAR PREDICTION
- LUNC PREDICTION. LUNC cryptocurrency
- WIF PREDICTION. WIF cryptocurrency
- USD VES PREDICTION
- USD COP PREDICTION
- EUR CLP PREDICTION
2024-04-09 22:13