• Vitalik Buterin proposes breaking Ethereum block roles to tackle staking centralization.
  • Ethereum’s Scourge upgrade targets enhanced security and decentralized staking.
  • Buterin suggests adjusting the issuance curve to manage over-staking and ensure network equity.

Vitalik Buterin, co-founder of Ethereum, continues to push the blockchain’s growth with his latest article, “Possible Futures of the Ethereum Protocol, Part 3: The Scourge.” This work elaborates on essential enhancements to cement decentralization while bolstering the network against looming security threats. Buterin’s address targets minimizing the threats associated with the centralization of Ethereum’s Proof-of-Stake (PoS).

Possible futures of the Ethereum protocol, part 3: The Scourge https://t.co/mtzH1ZxTak

(I tried my best to be fair to all sides of the debates here!)

— vitalik.eth (@VitalikButerin) October 20, 2024

Addressing Staking Centralization and Security

In his detailed exploration, Buterin identifies key factors contributing to centralization risks within the Ethereum staking environment. The current staking model, requiring a minimum of 32 ETH and significant hardware demands, potentially marginalizes smaller stakeholders. 

This scenario could lead large stakeholders to dominate, leaving smaller players to rely on joining bigger staking pools, which contradicts the ethos of decentralization. Buterin proposes a structural revision of the block production process to distribute responsibilities more evenly among stakers, thereby reducing the potential for central control.

Buterin suggests that decentralizing the task of choosing which transactions make it into a block could prevent a concentration of power. His proposal advocates for a system where proposers, or stakers, regain the responsibility for transaction selection while builders focus merely on organizing these transactions within blocks.This method aims to diminish the influence of large stakers and maintain a fair playing field for participants of all sizes.

Read CRYPTONEWSLAND on google news

Innovative Solutions to Enhance Decentralization

The Scourge phase introduces innovative mechanisms like the Multiple Concurrent Proposers (MCP) and technologies such as BRAID, which distribute block production tasks across several entities. These solutions are designed to lower entry barriers and dilute the dominance of large-scale participants. Buterin emphasizes the role of encrypted mempools in this setup, which safeguard transaction details until their inclusion in a block, thereby supporting anonymity and reducing bias in transaction processing.

Additionally, to combat “over-staking”—where a disproportionate volume of ETH is locked into staking—Buterin proposes adjusting Ethereum’s issuance curve. This adjustment would decrease staking rewards when the staked amount exceeds a certain threshold, discouraging centralization and ensuring no single group can wield excessive control over the network.

disclaimer read more

Crypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.