Ethereum co-founder Vitalik Buterin confirmed that he does not stake most of his ETH, but only a very small portion.
During his participation in the Bankless Podcast, the co-founder of Ethereum, Vitalik Buterin, confessed that he does not have all of his ETH in stake, claiming that he only spends a very small part due to the complications of carrying out the configuration.
For the expert, multisig wallets are very complex when putting them to work, as these types of wallets are basically a smart contract that allows funds to be blocked. These wallets also require multiple owners to approve transactions.
Cardano founder Charles Hoskinson reacted to Buterin’s words on his Twitter account and stressed that all of his ADA are staked. Although Cardano and Ethereum are rivals, the latter is by far much more popular among the crypto community. Hoskinson added that “all” of his Cardano ADA is staked. He tweeted the following on June 29:
“I had to listen to this a few times. I’m just at a loss for words. All of our ADA is staked. Guess what, that’s how it’s supposed to be for a properly designed Proof of Stake protocol.”
Vitalik Buterin Aims at the Complexity of Multisignatures
On June 29, Vitalik Buterin admitted that he does not have all of his ETH staked, which is curious given that he is the co-founder of Ethereum. However, the expert explains the reasons and says that there are ways to make the blocking less complex, but with a certain degree of risk. Buterin explains it as follows:
“If you stake your ETH, the keys to access it have to be public in an online system. For security, it has to be a Multisig. Multisig for staking is still quite difficult to set up; it gets complicated in many ways”.
Buterin highlighted the advantages of the EigenLayer protocol, which allows both Ethereum validators and participants to “restake” their assets on other emerging networks.
However, this protocol has some notable risks for investors. One of them is centralization, as recognized by the interviewee. For him, this is a challenge that comes before the protocol is even officially launched. So far, it is in the testnet phase, and it is expected to see the light of day in 2023.
Vitalik Buterin’s statement that they do not have their ETH staked may upset the community, regardless of the reasons.
Hoskinson Says That’s Not a Problem in Cardano
Shortly after Vitalik Buterin’s statements, the Cardano leader responded via Twitter. As mentioned above, Hoskinson claimed to have been in complete disbelief after hearing his rival’s claims that he does not stake all the coins he owns.
The founder of EigenLayer, Sreeram Kaanan, admitted that there are complex risks with the restakking issue. In that sense, he said it is important to take a narrow approach. In other words, don’t bet everything on just one protocol.
“The restrictions are the really good point for the ecosystem,” he said. Beyond all this, Vitalik Buterin has clearly no intention of hiding weaknesses, but rather he takes a self-deprecating stance towards Ethereum. Recently, Buterin has highlighted that the Ethereum Blockchain fails utterly by not having a scaling infrastructure that allows cheaper transactions.
By Audy Castaneda
