Originally published on: October 21, 2024
Ethereum co-creator Vitalik Buterin has proposed innovative solutions to address Ethereum’s block production and staking centralization issues during the “Scourge” phase of Ethereum’s technical roadmap.
Concerned about the centralization of staking due to economies of scale, Buterin highlighted the risks associated with large staking pools dominating the network. He emphasized that this trend poses a significant threat to Ethereum’s security and could result in transaction censorship and other crises.
Buterin suggested capping the amount of Ether an individual can stake and limiting staking penalties to 12.5% of staked Ether to mitigate these risks. He also proposed a two-tier staking model, separating risk-bearing and risk-free staking to encourage decentralization.
In addition, Buterin addressed the issue of block production centralization, pointing out that two entities had built the majority of Ethereum blocks in recent weeks. He proposed a new system where proposers or stakers choose transactions, while builders focus on ordering transactions to prevent centralization problems.
To improve the efficiency and security of the Ethereum network, Buterin introduced the concept of “BRAID,” which involves splitting the block production process among multiple actors to promote decentralization.
These solutions aim to enhance Ethereum’s security, prevent transaction censorship, and promote decentralization within the network. By implementing these changes, Ethereum can address key challenges and ensure a more sustainable future for the platform.