Vitalik proposed a decentralized solution to the Ethereum staking protocol.

Vitalik proposed a decentralized Ethereum staking protocol solution.

Author: Oluwapelumi Adejumo, beincrypto Translation: Shanooba, LianGuai

• Vitalik Buterin, co-founder of Ethereum, has proposed a solution to address decentralization issues and enhance the security of staking pools and protocols.

• His two-layer model introduces node operators and delegators, allowing users to choose their preferred node operator and significantly improve security.

• The proposal aims to completely change the staking landscape of Ethereum, providing a more decentralized and consensus-driven system.

  • Ethereum’s native LST adopts a two-tier staking design Lido killer?
  • Court ruling confirms Ripple does not own XRP ledger.
  • Ethereum Researcher Minimum Viable Issuance is an Important Commitment to Regular Ethereum Users

Ethereum co-founder Vitalik Buterin has put forward a series of solutions to support the decentralization of staking pools and protocols, and has proposed measures to enhance the security of these protocols to resist potential attacks. These proposals are based on Vitalik’s previous suggestions regarding potential changes to the Ethereum network.

Tackling Decentralization Challenges

Vitalik’s proposal directly addresses some of the issues in the current staking process. He is concerned about the decentralization of node operator selection and the burden on the consensus layer. Currently, there is a decentralization problem with the selection of node operators in different staking pools. The current Layer 1 (L1) consensus mechanism also faces the issue of transaction authorization costs. To address these issues, Vitalik advocates for the adoption of a two-layer staking system model similar to projects like Rocketpool and Lido. This system introduces node operators and delegators as the main participants. Node operators act as validators, running nodes to create new blocks and submitting a specific amount of ETH to the staking pool. At the same time, delegators become members of the mining pool and mortgage their assets to the node operator of their choice. In this setup, delegators have the autonomy to choose their preferred node operator.

Enhancing Staking Pool Security

In addition to addressing centralization concerns, the proposed two-layer system promises to strengthen security within staking pools. The system establishes a strong defense barrier by allowing delegators to determine the node operator, making it difficult for potential attackers to compromise. Those without delegator support who want to become node operators would need to invest a significant amount of ETH, potentially up to one-third of the total staked amount, which could exceed 2.08 million ETH. Therefore, any hacking attempt would incur significant costs for the attacker.

Vitalik emphasizes that implementing these proposals can alleviate the issues affecting the Ethereum Layer 1 staking protocol. It allows stakers to choose their preferred nodes and helps establish a more decentralized and consensus-driven system.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!