Ethereum co-founder Vitalik Buterin expressed concerns about overcomplicating the Ethereum consensus mechanism beyond its original design, specifically in terms of re-staking.
In a new blog post, Buterin voiced reservations about initiatives that could unnecessarily introduce risks into the ecosystem and complicate the roles of Ethereum validators beyond their primary duty of verifying the core protocol rules. Buterin was concerned about re-staking, a mechanism being developed by Eigen Layer, among others, which broadens the responsibilities of Ethereum validators to include securing external chains. He was worried that re-staking might introduce risks that could affect the safety of the network.
We should tread lightly when application-layer projects aim to extend the scope of blockchain consensus beyond the validation of essential Ethereum protocol rules, Buterin stated in the post.
In Ethereums proof-of-stake model, validators are selected based on the number of ether they hold and are willing to stake. The network has the largest validator set among all proof-of-stake chains, both in terms of the number of validator entities and the total value of staked ether, some 18 million ETH (~$34 billion). This considerable size has prompted the development of systems to leverage this network security to secure third-party chains. However, Buterin advocated for a cautious approach.
Buterin noted that while re-staking can be used for low-risk purposes, there are situations where it could compromise the mainnets security, such as when Ethereum validators face slashing on third-party chains. Slashing is a punitive measure for validators who engage in undesirable activities, like improperly maintaining their stake or incorrectly processing transactions.
We should instead preserve the chains minimalism and support uses of re-staking that do not seem like slippery slopes towards extending the role of Ethereum consensus, Buterin suggested.
Buterins comments elicited responses from Sreeram Kannan, co-founder of Eigen Layer. Kannan agreed with Buterins analysis and acknowledged that Eigen Layer should avoid building complex financial primitives with the help of re-staking, as they can spiral out of control. Nevertheless, he stated that re-staking can be used for low-risk scenarios.
Kannan agreed that Eigen Layer can extend the functionality of validators beyond Ethereum but said these should be developed without the need for slashing, which would introduce unnecessary complexity. He further emphasized that Eigen Layer is cautious about not impacting Ethereums security in any way, aligning with Buterins blog post.
Buterin discussed a 2015 proposal from Martin Kppelmann, the co-founder of Gnosis, for an ultimate oracle, deriving security from ETH stake. In the context of smart contracts, oracles are vital as they supply off-chain data. However, Buterin said that if the security of these data feeds were intertwined with Ethereums stake, it might contribute to increased complexity.
Buterin suggested that such expanded roles or duties added to Ethereums consensus mechanism could magnify the challenges and risks involved in operating as a validator. He emphasized, Validators are required to exert significant human effort in terms of monitoring, running, and updating additional software to ensure their adherence to any newly implemented protocols.
2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Read more here:
Vitalik Buterin urges caution when it comes to re-staking on Ethereum - The Block - Crypto News
- 5 Ways Smart Contracts Are Making A Real-World Difference - HackRead - May 25th, 2023 [May 25th, 2023]
- Coinbase Cloud Will Run Chainlink Node in Bid to Improve Smart Contract Security - Blockworks - May 25th, 2023 [May 25th, 2023]
- Forward x Boba Network Integration Partnership - A Framework for ... - Captain Altcoin - May 25th, 2023 [May 25th, 2023]
- Tokenization of Investment Fund Units - Lexology - May 25th, 2023 [May 25th, 2023]
- The Future Of DeFi: Exploring BNB, Cardano, and Caged Beasts | Bitcoinist.com - Bitcoinist - May 25th, 2023 [May 25th, 2023]
- How Banks Plan to Use AI to Boost Web3 Adoption - BeInCrypto - May 25th, 2023 [May 25th, 2023]
- Bitcoin NFT Blockchain Holds Second Space Defeating Solana - The Coin Republic - May 25th, 2023 [May 25th, 2023]
- Ethereum (ETH) Staking Gains Momentum: $2,000 Price Target? - BeInCrypto - May 25th, 2023 [May 25th, 2023]
- How Will Dogetti Fare When Bitcoin and Ethereum's Price and ... - Analytics Insight - May 25th, 2023 [May 25th, 2023]
- Vitalik Buterin calls DFINITY Ethereum's sister network EDCON ... - Cryptopolitan - May 25th, 2023 [May 25th, 2023]
- Voltz Protocol Launches First TradFi Rates Trading for DeFi on Avalanche - Yahoo Finance - May 25th, 2023 [May 25th, 2023]
- Aave considers proposal to expand into Coinbase-backed Base network - The Block - Crypto News - May 25th, 2023 [May 25th, 2023]
- 4 reasons why DAO development should be on your business to-do ... - Digital Journal - May 25th, 2023 [May 25th, 2023]
- Polygon Partners with De.Fi to Integrate Web3 Antivirus - BeInCrypto - May 25th, 2023 [May 25th, 2023]
- Coinbase-backed motion makes four key arguments to lift Tornado Cash sanctions - FXStreet - May 25th, 2023 [May 25th, 2023]
- Pyth Network Releases New XRP Price Feed On Up To 20 ... - The Crypto Basic - May 25th, 2023 [May 25th, 2023]
- Charting the Crypto State of the Future: The World State's ... - 24-7 Press Release - May 25th, 2023 [May 25th, 2023]
- What Is ERC721-C, and Could It Solve Web3's Royalty Issues? - nft now - May 25th, 2023 [May 25th, 2023]
- Crypto industry updates: Chainlink VRF live on Arbitrum One - InvestorsObserver - May 25th, 2023 [May 25th, 2023]
- This Ethereum Proposal Wants to Bring Revenue Back to Developers - Blockworks - May 23rd, 2023 [May 23rd, 2023]
- Cardano Looks to Dethrone Ethereum with Increased Contracts and Scalability - The Crypto Basic - May 23rd, 2023 [May 23rd, 2023]
- Ethereum's Programming Language Updated, Here's Why Gas Fees May Drop - Bitcoinist - May 23rd, 2023 [May 23rd, 2023]
- Cardano adds over 1,000 smart contracts since start of 2023 - Finbold - Finance in Bold - May 23rd, 2023 [May 23rd, 2023]
- Uncover Hidden Gems: 3 Cryptocurrencies Under $1 With Massive ... - The Motley Fool - May 23rd, 2023 [May 23rd, 2023]
- Smart Contracts to Immortality: 10 Technologies for Business Growth - Analytics Insight - May 23rd, 2023 [May 23rd, 2023]
- Benefits of blockchain in limiting counterfeit drug distribution - European Pharmaceutical Review - May 23rd, 2023 [May 23rd, 2023]
- The Cryptocurrency Symphony: Bitcoin's Fungible Dreams, Ethereum's Versatile Reality, and - Bitcoinist - May 23rd, 2023 [May 23rd, 2023]
- Small Industries Development Bank Of India Pilots Tokenized Collateral Network On Blockchain - Forbes - May 23rd, 2023 [May 23rd, 2023]
- Singapore and New York regulators collaborate on CBDC ... - CoinGeek - May 23rd, 2023 [May 23rd, 2023]
- Web3 Services: Chainlink And Arbitrum, The L2 Scaling Solution For Ethereum DApps, Announce Launch Of - Crowdfund Insider - May 23rd, 2023 [May 23rd, 2023]
- Ethereum's PulseChain Development: A Reminder About Crypto's ... - Seeking Alpha - May 23rd, 2023 [May 23rd, 2023]
- Heather Rae Doyle: Florida in the lead in emerging blockchain ... - Florida Politics - May 23rd, 2023 [May 23rd, 2023]
- EYWA Protocol Announces Partnership with Curve Finance - InvestorsObserver - May 23rd, 2023 [May 23rd, 2023]
- World Bank turns to blockchain for tokenizing infrastructure process ... - CoinGeek - May 23rd, 2023 [May 23rd, 2023]
- Bullish-Rated Everex (EVX) Rises Monday to $0.01231043091 - InvestorsObserver - May 23rd, 2023 [May 23rd, 2023]
- Exploring the Rise of DAO Projects: A Deep Dive into Core DAO and ... - Cyber Kendra - May 23rd, 2023 [May 23rd, 2023]
- Cardano defies crypto downturn as transaction volume soars 200% - Finbold - Finance in Bold - May 23rd, 2023 [May 23rd, 2023]
- AIchaintify (ACTY) Launched, Revolutionizing Blockchain with AI ... - InvestorsObserver - May 23rd, 2023 [May 23rd, 2023]
- Managing the agricultural supply chain: Contract negotiation and ... - Lexology - May 23rd, 2023 [May 23rd, 2023]
- Best Staking Tokens in 2023: Diversify Your Crypto Holdings - CryptoTicker.io - Bitcoin Price, Ethereum Price & Crypto News - May 23rd, 2023 [May 23rd, 2023]
- New Religious Cryptos Pump - Are They Scams? God, Mary, Baby ... - Cryptonews - May 23rd, 2023 [May 23rd, 2023]
- Smart Contracts Market to Surpass USD 1077.7 Million by 2030 ... - GlobeNewswire - April 26th, 2023 [April 26th, 2023]
- Smart contracts, blockchain and decentralized computing - TheServerSide.com - April 26th, 2023 [April 26th, 2023]
- What Are Smart Accounts on Ethereum? - Coinspeaker - April 26th, 2023 [April 26th, 2023]
- Pepe Coins Mega Rise Pinned To This Smart Contract Fix - NewsBTC - April 26th, 2023 [April 26th, 2023]
- Space and Time launches data warehouse to revolutionize ... - Finbold - Finance in Bold - April 26th, 2023 [April 26th, 2023]
- How AI Is Revolutionizing Cryptocurrency Trading: An Overview of ... - The Motley Fool - April 26th, 2023 [April 26th, 2023]
- TransUnion is partnering with Spring Labs and Quadrata to bring ... - Fortune - April 26th, 2023 [April 26th, 2023]
- Can Cardano Price Overtake Ethereum? - BeInCrypto - April 26th, 2023 [April 26th, 2023]
- DAOs 101: A Comprehensive Guide to Decentralized Autonomous ... - Grit Daily - April 26th, 2023 [April 26th, 2023]
- Blockchain-powered reinsurer Re backs $34 million in Q1 premiums - Reinsurance News - April 26th, 2023 [April 26th, 2023]
- Web3 To Revolutionize Social Media With Creator Ownership - BeInCrypto - April 26th, 2023 [April 26th, 2023]
- Top 5 Decentralized Exchanges on Arbitrum: The Future of Low ... - BSC NEWS - April 26th, 2023 [April 26th, 2023]
- First Mover Asia: Bitcoin Breaks Its Losing Streak in Late Tuesday Rally - CoinDesk - April 26th, 2023 [April 26th, 2023]
- L3COS AND JET.RENT PARTNER TO LAUNCH TOKENISED ... - PR Newswire - April 26th, 2023 [April 26th, 2023]
- Avalanche launches Cortina Upgrade, but will things change for AVAX - AMBCrypto News - April 26th, 2023 [April 26th, 2023]
- Prices of Floki (FLOKI) and XEN Crypto (XEN) - The Cryptonomist - April 26th, 2023 [April 26th, 2023]
- Bitcoin Cash (BCH) is now home to an innovative leverage trading app - Cointelegraph - April 26th, 2023 [April 26th, 2023]
- Best AI Tokens in 2023 Invest to be a billionaire? - CryptoTicker.io - Bitcoin Price, Ethereum Price & Crypto News - April 26th, 2023 [April 26th, 2023]
- Innovation Bootcamp Unveiled by BNB Chain - BSC NEWS - April 26th, 2023 [April 26th, 2023]
- The Impact Of Blockchain Technology In The Legal Industry ... - Blockchain Magazine - April 24th, 2023 [April 24th, 2023]
- Blockchain and Smart Contracts - Enabling Trustworthy Digital ... - Tech Critter - April 24th, 2023 [April 24th, 2023]
- Cardano (ADA) launches the future of smart contracts with Aiken in ... - Crypto News Flash - April 24th, 2023 [April 24th, 2023]
- XRP Ledger Makes Progress Towards Supporting Native Smart ... - The Crypto Basic - April 24th, 2023 [April 24th, 2023]
- Pi Network Reveals Tech and Product Updates for Pioneers - BSC NEWS - April 24th, 2023 [April 24th, 2023]
- Unleashing the Potential: Tools and Apps on the Ethereum Blockchain - Captain Altcoin - April 24th, 2023 [April 24th, 2023]
- Blockchain As A Service Market is expected to Exhibit a Massive ... - Digital Journal - April 24th, 2023 [April 24th, 2023]
- Automotive Blockchain Market is expected to represent Significant ... - Digital Journal - April 24th, 2023 [April 24th, 2023]
- Uncomfortable with the security of web3 transactions? Fire might be ... - Refresh Miami - April 24th, 2023 [April 24th, 2023]
- VeChain explores Billion-$-KI industry with OpenAI - Crypto News Flash - April 24th, 2023 [April 24th, 2023]
- Attention Crypto Scammers: AI is on the Hunt - BeInCrypto - April 24th, 2023 [April 24th, 2023]
- What is the Best Cardano DEX, and Why is it WingRiders? - DataDrivenInvestor - April 24th, 2023 [April 24th, 2023]
- Is 2023 The Year For Shiba Inu (SHIB) And RenQ Finance (RENQ)? - Benzinga - April 24th, 2023 [April 24th, 2023]
- Coinbases Base network gets OpenZeppelin security integration - Cointelegraph - April 24th, 2023 [April 24th, 2023]
- The Role of Enterprise Ethereum: Applications, Benefits, and Challenges - Finance Magnates - April 4th, 2023 [April 4th, 2023]
- Astar Network To Launch Smart Contracts 2.0 on the Mainnet on April 6th - The Defiant - DeFi News - April 4th, 2023 [April 4th, 2023]
- Cryptocurrencies To Watch: Week of April 3 - Investopedia - April 4th, 2023 [April 4th, 2023]
- Steps to A Blockchain Industry Consulting Career: Maximizing ... - Cryptopolitan - April 4th, 2023 [April 4th, 2023]
- Justice Dept. Seizes Over $112M in Funds Linked to Cryptocurrency ... - Department of Justice - April 4th, 2023 [April 4th, 2023]
- Stacks [STX] gains newfound attention from investors, but will its uptrend last - AMBCrypto News - April 4th, 2023 [April 4th, 2023]