Vitalik discusses the risks and key goals of Ethereum
Vitalik has released a new article on the future development of the Ethereum protocol (part 3: The Scourge) titled "Possible futures of the Ethereum protocol, part 3: The Scourge". Vitalik believes that one of the biggest risks facing Ethereum L1 is the centralization of proof-of-stake due to economic pressure. If there are economies of scale in participating in the core proof-of-stake mechanism, this will naturally lead to large stake holders dominating and small stake holders exiting to join larger pools. This will increase the risk of 51% attacks, transaction censorship, and other crises. In addition to the centralization risk, there is also a risk of value extraction: a small group of people are getting value that would have gone to Ethereum users.
Key objectives to address risks:
Minimize the centralization risk of the Ethereum staking layer (especially in block construction and capital provision, i.e. MEV and staking pools);
Minimize the risk of excessive value extraction from users;
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
U.S. Spot Bitcoin ETFs See Sustained Inflows

Prenetics to Sell Genomics Branch, Acquire Bitcoin

Ohio Passes Bill Exempting Tax on Small Bitcoin Transactions

Ohio House Exempts Bitcoin Payments Under $200 from Taxes

Trending news
MoreCrypto prices
More








