It seems that Ethereum co-founder Vitalik Buterin does not trust the security of the infrastructure that enables ETH staking. Consequently, in a recent interview, Buterin stated that he would only stake a limited number of coins to ensure the network is distributed and remains robust against malicious actors who might attempt to take over the platform, reversing transactions.
Vitalik Buterin has doubts about Ethereum staking
Buterin has raised concerns about the potential risks of ETH staking via third-party infrastructure, specifically regarding private key exposure and the danger it poses to his entire staking. He believes that implementing a multi-signature system could provide better protection. However, the current process is more difficult to configure, leading to increased caution.
In a multi-sig system, users have their private key to sign transactions. A specific number of signatures must be provided to approve a transaction, which varies depending on the Ethereum wallet configuration. This setting increases security and reduces the risk of unauthorized access to funds.
During the podcast without bankthe co-founder explains:
Probably the biggest reason I’m personally not just staking all my ETH, but staking a fairly small portion, is because if you stake your ETH, it has to be everything, like the keys that access it. be public on some system that is online, and for security, it has to be a multi-sig, and multi-sigs for staking are still quite difficult to set up, and it gets complicated in many ways.
ETH prices hold steady below $2,000
His comments have generated much discussion. Most critics are concerned about the entire Ethereum security framework. After moving from a proof-of-work to a proof-of-stake system, Ethereum relies on a network of validators who have to stake at least 32 ETH for a chance to approve a block of transactions and earn block rewards and fees. transaction. These validators are also needed to secure the network; without them, the blockchain will be susceptible to attack.
according to chain data, there are more than 643,000 validators spread around the world who have staked more than 20.5 million ETH. On average, each validator has bet 32.17 ETH. In particular, the validator count has steadily increased over the years, and the amount of ETH staked has risen sharply despite the recent update allowing interested parties to unlock their coins.
Charles Hoskinson, the founder of Cardano and one of the original co-founders of Ethereum, saying he was “speechless,” clarifying that all of his ADA is staked as expected in a “properly designed proof-of-stake system.”
As of this writing, ETH prices are holding firm and were not affected by Buterin’s comments. However, the coin is yet to break above $2,000 and trends below the April 2023 highs to early July 2023.
Featured Image from Canva, Chart from TradingView
