Vitalik Buterin discusses if ‘Ethereum’s technology should be multipurpose’

MARKET_WATCH Crypto

Ethereum's founder Vitalik Buterin talks about how repurposing Ethereum Validators may have security implications for Ethereum in the future. 

 


  • Vitalik Buterin, in a recent post, stated how the reuse of validators for different purposes may compromise the security of the Ethereum network.
  • ETH’s price and network usage didn’t react to Vitalik’s blog post.

The consensus mechanism of the Ethereum network stands as one of the most robust and secure cryptoeconomic systems available. With approximately 18 million ETH, equivalent to around $34 billion, held by validators, blocks are successfully finalized every 6.4 minutes.

Realistic or not, here’s ETH market cap in BTC’s terms

Should Ethereum’s technology be multipurpose?

Due to the robustness of this technology, many have suggested alternative uses of Ethereum’s blockchain.

Various ideas have surfaced over time to leverage the Ethereum validator set and social consensus for different purposes. One such idea is the ultimate oracle, where users can vote on facts using ETH.

 

 

Re-staking is another concept employed by protocols like EigenLayer, allowing Ethereum stakers to use their stake as a deposit in another protocol, potentially facing penalties for misbehavior.

Additionally, the notion of L1-driven recovery of L2 projects suggests forking the Ethereum blockchain to address bugs or failures in Layer 2 solutions was also suggested.

Vitalik Buterin, in a recent post, has stated how the reuse of validators for different purposes like the ones mentioned above may compromise the security of the Ethereum network.

Criticisms ahead

According to Vitalik, allowing Ethereum stakers to simultaneously use their stake as a deposit in another protocol, creates a scenario where stakers can be challenged or penalized for violating the rules of the other protocol.

This introduces a potential avenue for manipulation or exploitation of the staking mechanism, which could undermine the security and integrity of the Ethereum network.

Is your portfolio green? Check out the Ethereum Profit Calculator

Furthermore, Vitalik highlighted the potential for contentious hard forks as a result of the re-staking process. According to him, conflicting interests and incentives within the community can lead to network splits and disruptions.

What did the founders have to say?

Sreeram Kannan, Founder of EigenLayer, a protocol directly referenced in the blog post, took to Twitter to respond. In the tweet, Sreeram stated that the principles of Eigen Layer were consistent with the content of the blog post.

 

 

Network remains unfazed

Furthermore, the Ethereum network and ETH remained largely unaffected by the blog post and the responses surrounding it. The daily activity on the Ethereum network continued to surge and the gas usage on the Ethereum remained high. ETH was trading at $1813 at press time and hadn’t seen much volatility

Source: Santiment

 

Source : [Vitalik Buterin discusses if ‘Ethereum’s technology should be multipurpose’](ambcrypto.com/vitalik-buterin-discusses-if-ethereums-technology-should-be-multipurpose/) by Himalay Patel - AMBCrypto by Himalay P

rayn.finance logo

Automata FRANCE SAS

240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma

Italy

The purchase of digital assets is subject to a high market risk and price volatility. Changes in value can be significant and occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and returns can fluctuate both up and down, and you may not recover the amount you invested. RISK WARNING

Automata ICO Limited has a branch in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.

Automata Pay Europe Limited is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and safeguarded in line with the Financial Supervision Act.