Vitalik Buterin has identified potential risks in the Ethereum network.
Ethereum risks Proof-of-Stake centralizing because of economic pressure.
The proof-of-Stake mechanism would naturally lead to large stakers dominating.
Ethereum co-founder Vitalik Buterin has identified potential risks in the Ethereum network, especially around the blockchain’s staking protocol. According to Buterin, Ethereum risks Proof-of-Stake centralizing because of economic pressure. The co-founder stated that the existence of economies of scale in the core Proof-of-Stake mechanism would naturally lead to large stakers dominating and small stakers dropping out to join large pools.
Related: What Ethereum Migration to Proof-of-Stake Means to Web3 CEOs
In a recent publication, Buterin further highlighted that the dropping out of small stakers to join the larger ones could expose the Ethereum network to higher risks of 51% attacks, transaction censorship, and other crises. The blockchain expert also cited the possibility of risking value extraction, where only a small group would claim all the value meant to go to Ethereum’s users.
Possible futures of the Et…
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