2023-10-09 07:33:01
Ethereum co-founder Vitalik Buterin presented a series of solutions that would promote greater decentralization of staking pools and protocols. He also outlined ways to increase the security of these protocols once morest potential attacks. The recommendations are consistent with an earlier proposal that Buterin said would make necessary changes to the network. Decentralization problems Buterin’s proposals directly target the already existing challenges regarding staking processes. These include the centralization risk associated with node managers, as well as the load on the consensus layer. The selection process of node managers among various stakingpools raises decentralization concerns, he says. In addition, the current first-layer (L1) consensus mechanism is seriously overloaded by the authentication of transactions. To mitigate these challenges, Buterin suggests implementing a two-tier staking system similar to those used by the Rocketpool and Lido projects. This system would see node managers and delegators as key actors. Our related article: Buterin: the solution to Ethereum centralization will come in 20 The node managers would serve as authenticators, might create new blocks by running the node and contribute a certain amount of ETH to the staking pool. Delegators, on the other hand, would be members of the pool and would stake their assets with the node manager of their choice. So in this setup, the delegators would have the opportunity to select the node manager they like. It would also increase the security of staking pools In addition to centralization concerns, it is hoped that the two-level system would also increase the security of staking pools. The system would create an insurmountable barrier for potential attackers by allowing delegators to choose their own node manager. Those who want to become a node manager but do not have supporting delegators would need to commit a significant amount of ETH to the network. Up to a third of the total staked assets, which is currently 2.08 million ETH. As a result, any hacking attempt would come at a high cost to the attacker. Buterin emphasized that the implementation of the proposals might alleviate the problems affecting the first layer of Ethereum. The model would also significantly reduce the number of required signatures – from 800,000 to 10,000, which would also encourage an increase in the number of node managers.
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