Key takeaways:
- Ethereum co-founder Vitalik Buterin highlights the necessity to revamp Ethereum’s staking mechanism to foster healthier mining and staking pools.
- Buterin ultimately aims to enhance the overall decentralization of the platform.
In a recent development, Ethereum‘s co-founder, Vitalik Buterin, has proposed a comprehensive redesign for the Ethereum network, aiming to address persistent performance issues and enhance the staking process. The proposed changes could have far-reaching implications for both users and developers within the Ethereum ecosystem.
Speaking at Devconnect in Turkey, Buterin emphasized the need to reform Ethereum’s staking process to support more effective mining and staking pools. The primary objective is to boost the platform’s decentralization, addressing challenges related to data availability in off-chain systems that have hindered the network’s efficiency in the short and medium term.
The proposed initiative comes on the heels of Buterin’s notable move a month ago, where he sold his entire remaining stake of 500 MakerDAO (MKR) tokens via the CoW Protocol. This transaction, documented on the blockchain, saw Buterin receive approximately 353 ETH, valued at around $580,000 at the time.
Buterin’s redesign plans, highlighted under Ethereum Improvement Proposal (EIP) 4844, known as Danksharding, aim to increase the data map space to 16 megabytes per slot. The post-upgrade phase involves configuring parameters and attributes to refine Ethereum’s scalability and efficiency. Notable features mentioned include private mempools, the ERC-4337 account abstraction protocol, code precompilation, ZK-EVMs, and fluid staking.
Expressing concern about the concentration of Ethereum’s fluid staking in the proof-of-stake model, Buterin pointed out that providers like Lido and Rocket Pool currently hold over 32% of the staking supply. Despite the implemented security mechanisms, Buterin remains cautious, acknowledging the need to strike a balance between development flexibility, performance advantages, and centralization risks when integrating various protocols.
In response to Buterin’s mention of the UTxO model, there was a lighthearted exchange on the microblogging site. Charles Hoskinson, the founder of Cardano, joined in with a satirical remark, playfully stating, “Ethereum 3 will solve it all,” highlighting the friendly banter among blockchain enthusiasts.
Additionally, Buterin explored the potential adoption of the Unspent Transaction Output (UTxO) model, a system currently utilized by blockchains like Bitcoin and Cardano. This willingness to consider diverse strategies showcases Ethereum’s commitment to addressing existing challenges within its network.
