In a recent blog post titled “Don’t Overload Ethereum Consensus,” Vitalik Buterin expressed concern about the dangers of extending Ethereum consensus beyond its core functions.
Buterin’s blog post on May 21 focuses on the need to preserve the minimalism of the blockchain. He highlights the potential high systemic risks of using the Ethereum network consensus for additional purposes.
Since the implementation of the proof-of-stake mechanism with “the merger” in September 2022, the Ethereum consensus has been in charge of validating blocks and securing the network. However, Buterin cautions against expanding its functionality, stating that doing so could introduce vulnerabilities into the ecosystem that should be discouraged and resisted.
Over the years, various proposals and ideas suggest using Ethereum’s social consensus for activities such as price and data oracles, staking initiatives, and using layer 1 soft forks to address problems in layer 2 projects. Buterin cautions that each extension of the blockchain’s core functionality increases its fragility, potentially exposing it to 51% bugs or intentional attacks.
Buterin mentions the risks of creating ETH/USD price oracles, where bribing ETH holders or validators to vote on specific outcomes could result in a hard fork that penalizes rogue participants.
Buterin proposes possible solutions
While acknowledging the need to improve oracles, he proposes a case-by-case approach, since different problems inherently have unique characteristics.
The Ethereum co-founder stresses that expanding Ethereum consensus responsibilities incurs increased costs, complexities, and risks for validators. He advises caution when application layer projects try to extend the scope of blockchain consensus beyond verifying the rules of the core Ethereum protocol.
Instead, Buterin suggests preserving the minimalism of the chain, supporting staking practices that don’t lead to a slippery slope of extending Ethereum’s consensus role, and helping developers find alternative strategies to achieve their security goals.
The switch from proof-of-work to proof-of-stake in the Ethereum consensus mechanism happened in September of the previous year. Additionally, the recent Shapella update, implemented on April 12, has made staked Ethereum available for withdrawal.
These developments have sparked increased scrutiny of validation roles and security risks in the world’s largest smart contract network.
(embed)https://www.youtube.com/watch?v=QXKqIIf6_AE(/embed)
PEPE triggers Ethereum congestion amid mememania
PEPE, a meme coin that has gained enormous traction within the crypto community, recently caused congestion on the Ethereum blockchain. This surge in popularity resulted in a sharp increase in gas rates on the grid, hitting a 12-month high earlier this month.
Furthermore, the PEPE frenzy has had a significant impact on Uniswap trading volume. The platform saw a substantial increase in trading activity, surpassing even the volume seen on Coinbase.
In the first week of May, Uniswap transaction volume reached an impressive $1.2 billion, while Coinbase recorded volume of $948 million during the same period.
