In the first quarter of 2023, the Ethereum proof-of-stakenet aggregate 66,000 new validators, with the total count increasing from 495,270 at the beginning of January to 562,236 at the end of March.
Increased validator count
Validators are fundamental in Ethereum, especially in the security and decentralization of the network. They validate transactions, ensuring that invalid transactions are not added to a block.
The growing number of validators means that more people and entities are willing to participate, which helps make the platform more robust and secure. This could have a bullish effect on the ethereum (ETH) price ahead of the Shanghai update scheduled for mid-April.
Reports indicate that there are about 13,600 nodes in 81 countries. Many of them are run by local participants, bringing a high degree of resilience, decentralization and diversity to the network.
With the total value staked on the Ethereum network having overcome 18m ETH, it becomes more and more difficult and expensive to attack the network. For a network reorganization to occur, attackers need 51% control over Ethereum’s processing power to take over and broadcast new information to all nodes.
To become a validator, a person or entity must deposit 32 ETH. Once the deposit is made, the validator gets engagement rewards from the network in exchange for their services. However, the staked funds are locked and cannot be accessed until the long-awaited Shanghai update.
Ethereum is more decentralized
Ethereum validators started gambling in 2021, shortly after the launch of the Beacon Chain. Since then, their bounty has grown steadily as more validators joined the network. There has been growing concern about the “centralized” nature of the network. However, any censorship concerns have yet to materialize.
Overall, the growth of Ethereum validators is a positive development for the network as it increases decentralization. The Shanghai upgrade, which will allow staked ethereum withdrawals, is expected to attract even more validators, which could lead to more decentralization and security of the network.
