Vitalik Buterin presented a proposal that improves security within staking pools. Its two-tier model features node operators and delegators. This proposal aims to revolutionize the Ethereum staking landscape.
Vitalik Buterin, co-founder of Ethereum, has presented a series of solutions to strengthen the decentralization of staking protocols and pools. He also proposed solutions to strengthen the security of these protocols against possible attacks.
These suggestions follow a previous proposal shared by Buterin regarding possible changes that could be made to the Ethereum network.
Addressing Concerns Related to Decentralization
Vitalik Buterin’s recommendations directly address existing challenges within the staking process. Addresses concerns about the risk of centralization among node operators and the load on the Consensus Layer.
According to Buterin, the node operator selection process in various staking pools suffers from decentralization issues. The current Layer 1 (L1) consensus mechanism also faces overhead when authorizing transactions.
To mitigate these challenges, Buterin advocates adopting a two-tier staking system similar to the models used by projects like Rocketpool and Lido. This system features node operators and delegators as key participants.
Node operators would function as validators, running nodes to create new blocks and committing a specific amount of ETH to the staking pool.
Delegates, on the other hand, would become members of the pool and lock their assets with their chosen node operators. In this setup, delegates gain autonomy to select their preferred node operators.
Improved Security of Staking Pools
Beyond addressing centralization concerns, the proposed two-tier system promises to bolster security within staking pools. The system erects a formidable barrier against potential attackers by allowing delegates to determine node operators.
Those looking to become node operators without delegator support would have to commit a significant portion of their ETH, possibly up to 1/3 of the total staking, which could amount to over 2.08 million ETH.
Consequently, any hacking attempt would incur a huge cost to the attacker. Buterin emphasizes that the implementation of these recommendations could alleviate the problems affecting the Ethereum L1 staking protocol. It allows stakers to select their preferred nodes, contributing to a more decentralized and consensus-based system.
Furthermore, the proposed model significantly reduces the number of signatures required from 800,000 to 10,000, which encourages an increase in the number of node validators.
Privacy Pools and Zero Knowledge Proofs
The idea behind “Privacy Pools” is that it would allow Ethereum (ETH) users to demonstrate that they received funds without revealing specific sources of funding.
Thus, users can simply post ZK-Proofs (zero-knowledge proofs) to verify that their cryptocurrencies do not come from illegal sources. That is, you could demonstrate your honesty without showing transaction history.
“The ultimate goal [is] to create a privacy-enhancing infrastructure that can be used in a regulated environment.”
Constant Ideas to Develop Ethereum
Vitalik Buterin has shown great research activity whose purpose is to improve the Ethereum network. During a conference held in South Korea, Buterin presented his vision of the obstacles that stand in the way of the development of the blockchain network.
According to the developer, the main problem with Ethereum is the high level of centralization of the network nodes. In this sense, Buterin believes that the search for its optimal solution may take approximately 20 years.
Previously, Vitalik Buterin had mentioned some factors without which Ethereum, in his opinion, will be doomed to failure.
By Leonardo Pérez
