Vitalik Buterin outlines solutions to Ethereum's Proof-of-Stake risks

Vitalik Buterin, co-founder of Ethereum (CRYPTO:ETH), recently addressed the potential risks associated with Ethereum’s Proof-of-Stake (PoS) mechanism, focusing on issues of centralisation and network security.

He emphasised that while PoS has improved the network, it still faces challenges that could threaten Ethereum’s long-term success if left unaddressed.

One of the key risks Buterin highlighted is centralisation.

He warned that economies of scale could force smaller stakers to leave the process and join larger staking pools, which increases the likelihood of a 51% attack and could lead to transaction delays.

Buterin also noted that about 30% of the total ETH is currently staked, and as this number grows, Ethereum could become more centralised, with ETH holders relying on centralised providers for staking.

To counter these risks, Buterin proposed several solutions.

One suggestion is implementing "committee inclusion lists" to ensure that smaller stakers have the same opportunities to participate in block creation as larger entities.

This would help maintain decentralisation within the network.

Additionally, Buterin recommended adjusting Ethereum’s supply curve to reduce staking yields after a certain threshold of staked ETH is reached.

This would discourage excessive staking by large participants and support deflation as network activity increases.

Buterin emphasised that these solutions are critical for Ethereum’s future and that ongoing efforts are needed to address the risks inherent in its PoS system.

By enhancing the security and decentralisation of Ethereum, these proposed changes aim to ensure the network’s long-term success.

At the time of writing, the Ethereum price was $2,733.87.