Crypto News: Buterin's Proposed Changes to Ethereum
In a recent post, Ethereum founder Vitalik Buterin proposed changes to the network. Let's break them down in simple terms:
Current State of Things
Ethereum currently uses a system where there are two main types of players:
1. Node Operators: These are like the backbone of the Ethereum network. They run nodes and provide collateral to make sure everything runs smoothly.
2. Delegators: These folks contribute some of their own Ethereum (ETH) but don't have to do much else. They're not required to run nodes or do anything complicated.
This two-tiered system came into existence because of staking pools. Staking pools make things easier for people to participate in Ethereum, but they also have some problems that must be fixed.
The Problems
There are two main issues with how things work now:
1. Centralization Risk: The way staking pools pick their node operators isn't very decentralized or secure. It's vital to make this part better in the near future.
2. Too Much Work for the Network: Ethereum's heart, known as the consensus layer, has to check about 800,000 signatures per epoch (the time required for 30,000 blocks to be completed on the chain). This is a lot of work, and it could get even harder. Buterin wants to find a way to make things easier for Ethereum, like reducing this number to about 10,000.
Vitalik's Ideas
Vitalik Buterin is working on some ideas to fix these issues. The big question is: How can we get people who don't want to run nodes to still help Ethereum be safe and decentralized?
Right now, there are two popular staking pools, Lido and RocketPool, and they're creating something we call a two-tiered staking system. Here's how they work:
- Node Operators: These guys get picked by a vote or by buying a special type of token.
- Delegators: They hold a special kind of Ethereum called stETH or rETH. But they don't really have a say.
Buterin wants to give delegators a more meaningful role. This is where Vitalik's ideas come into play.
Vitalik's Ideas
Buterin advocates for a more substantial role for delegators within the network. He delineates two categories of solutions: delegate selection and consensus participation. Under the delegate selection paradigm, delegates would have the ability to choose the node operators they wish to support, granting them a meaningful say in the consensus process, ultimately enhancing decentralization.
Alternatively, in the consensus participation model, delegators would assume a more lightweight role in the consensus procedure, serving as a safeguard against node operators' actions. This approach opens the door for a broader spectrum of participants in the network's validation process, without bearing the full responsibilities and risks of becoming a node operator.
Furthermore, Buterin offers concrete implementation concepts for these solutions. For instance, one proposal involves enabling each validator to designate two staking keys: a persistent staking key (P) and a quick staking key (Q). These keys could be harnessed in various ways to refine the consensus mechanism and curtail the number of requisite signatures. For instance, the protocol might mandate both the node and a randomly selected delegator to endorse a message for it to be considered valid.
Buterin's proposal seeks to achieve two primary objectives. Firstly, it aims to empower individuals who lack the resources or capacity to independently stake, allowing them to have a substantive role within the network. Secondly, it strives to reduce the number of required signatures for achieving consensus to approximately 10,000, thereby promoting decentralization and simplifying the process of running a validating node, which could be implemented at various levels, including staking pool protocols or as an integral part of the Ethereum protocol itself, providing a flexible means to enhance the network's staking model.