Tuesday, February 11, 2025

Vitalik Buterin Suggests Solutions to Ethereum Staking and Block Production Challenges

Article Image

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.

Hot this week

Study Finds 1 in 5 US Voters Engaged with Cryptocurrency

Originally published on: December 18, 2024A recent survey conducted...

Revolutionizing Blockchain Technology: Key Takeaways from G6 Networks AMA

Originally published on: December 18, 2024Gabor Bovai and David...

HashKey Group Unveils Revolutionary Ethereum Layer-2 HashKey Chain Mainnet

Originally published on: December 18, 2024HashKey Group, a pioneering...

Beware of Phishing Scammers: A Warning from Ledger’s Users

Originally published on: December 18, 2024Reports have surfaced indicating...

Avara Founder Supports Removal of Polygon Markets from Aave Platform

Originally published on: December 18, 2024Stani Kulechov, the CEO...

Topics

Study Finds 1 in 5 US Voters Engaged with Cryptocurrency

Originally published on: December 18, 2024A recent survey conducted...

Revolutionizing Blockchain Technology: Key Takeaways from G6 Networks AMA

Originally published on: December 18, 2024Gabor Bovai and David...

HashKey Group Unveils Revolutionary Ethereum Layer-2 HashKey Chain Mainnet

Originally published on: December 18, 2024HashKey Group, a pioneering...

Beware of Phishing Scammers: A Warning from Ledger’s Users

Originally published on: December 18, 2024Reports have surfaced indicating...

Avara Founder Supports Removal of Polygon Markets from Aave Platform

Originally published on: December 18, 2024Stani Kulechov, the CEO...

Crypto Communities Across the US Gear Up for Festive Meetups

Originally published on: December 18, 2024As the holidays approach...

Ethena Labs Joins Forces with Trump-Backed World Liberty Financial for Exciting Partnership

Originally published on: December 18, 2024Ethena Labs, a leading...

Unlock Your Football Skills with Cristiano Ronaldo and Binance Partnership

Originally published on: December 18, 2024Binance and Cristiano Ronaldo...
spot_img

Related Articles

Popular Categories

spot_imgspot_img