Author: Assad Jafri; Translation: Huohuo, Plain Language Blockchain
Ethereum, as the second largest blockchain in terms of market capitalization, its continuous development is crucial for its large user base, and it needs to continuously improve decentralization, efficiency, and security through constant adjustments and enhancements.
Ethereum founder Vitalik Buterin has announced an innovative proposal this week aimed at improving Ethereum’s staking mechanism.
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01 Decentralized Stake Vision
Vitalik’s proposal this time mainly revolves around the limitations of the current staking system.
It is worth noting that he pointed out the decentralization problem in the process of selecting node operators for various staking pools, and also pointed out the low efficiency problem in the current Layer 1 consensus mechanism.
Currently, the limitations of individual staking combined with the problem of liquidity staking means that the platform can only process approximately 100,000 to 1 million BLS signatures per period. (Note: In the world of cryptocurrency and blockchain networks, BLS signatures are used to verify and authorize transactions.)
In the case of pursuing accountability in signatures, it is required that each signature has a participation record, which makes the problem more complex. If Ethereum expands on a global scale, relying solely on complete danksharding storage may still not be enough, because each slot has a capacity of only 16 MB, which can only accommodate approximately 64 million stakers.
Drawn inspiration from the models implemented by Rocketpool and Lido, Vitalik proposes a two-layer staking system. In this structure, node operators and delegators become the core actors.
This two-layer staking model is specifically divided into:
1) A high-complexity, high-participation but limited-number-of-participants (about 10,000 people) punishable layer.
2) A low-complexity, irregular-participation, and minimal or no-punishment-risk layer.
This model will involve modifying the validator balance cap and implementing balance thresholds to classify validators into these two layers.
Vitalik elaborates on the potential roles of small stakeholders:
1) 10,000 small stakers are randomly selected for each slot, and they will sign the block headers of their respective slots. (Note: Block headers usually contain important information about the block, such as block number, timestamp, hash value of the previous block, etc.) If there are disagreements between stakers and node operators, an error alert will be triggered, prompting the community to intervene.
2) A delegator declares their online status and expresses their willingness to serve as a small staker for a certain period of time. In order for the node’s message to be confirmed, it needs to be endorsed by both the node and the randomly selected delegator.
3) Another approach is for the delegator to signal their availability, and then the selected delegator confirms their online status. Then, these delegators can publish an inclusion list for block validation.
(Note: “List of Delegations” refers to a list published by selected delegates that contains the approved public keys or other relevant information of delegates used for block validation. These delegates are selected to participate in the block validation process by confirming their online status and availability.)
The role of small stakers is characterized by irregular participation and an inability to be punished. It is important that the role of small stakers addresses an important issue, which is the possibility of node operators occupying more than 51% of the power in the network and attempting transaction censorship. By introducing the role of small stakers, the risk of node operators controlling the network is reduced, preventing them from abusing their power to censor or restrict transactions. The participation of small stakers can increase the decentralization of the network and provide greater security and resistance to censorship, thereby protecting the rights of users.
Vitalik also considered implementing these solutions in the context of a staking pool. He proposed a protocol that allows validators to specify two staking keys: a persistent key and a temporary key. The combination of these keys determines the final confirmation process of a block.
02 Impact
Vitalik’s proposal is not just a technical fix, but also a vision for the future of Ethereum. By further decentralizing the staking process and integrating security nets, his goals are:
1) To provide support for those who lack individual staking resources and offer them meaningful ways to participate.
2) To reduce the transaction processing load on the Ethereum consensus layer, making it easier for everyone to run validating nodes.
By decentralizing the staking process and incorporating safeguards, the goals become clear: to provide meaningful ways of participation for those who traditionally lack individual staking means and alleviate the transaction processing pressure on the Ethereum consensus layer. This helps to achieve a more inclusive platform where anyone intending to run a validating node can participate.
These proposals follow the principle of minimal modifications, combined with a strategic perspective, and ultimately aim to achieve a balanced, decentralized, and efficient Ethereum network.
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