#EigenLayer. has huge potential for Ethereum's evolution, but concerns remain as $8 billion is being staked
What risks could EigenLayer bring to Ethereum?
What internal risks might EigenLayer face?
How does EL address these risks?
Let's dig deeper and find out 📡
Critics (including Vitalik) worry about two main risks that EigenLayer could pose to Ethereum:
The first risk is Systemic Risk from Slashing Incidents — However, EigenLayer has prepared for this using 5 key strategies: 👇
✳️ Reallocate ETH staking across multiple Actively Validated Services (AVSs)
📦 Offer a combined security mechanism to help save costs
💸 Use penalty fees to compensate affected parties
🌍 Encourage diversity of validators to increase robustness
🔒 Prevents validators from making punishable mistakes
🤝 These strategies aim to protect Ethereum and its users from potential slashing incidents, ensuring a secure and decentralized network
😰 Second, critics worry that EigenLayer could contribute to the centralization of Ethereum as EL operations may be too much for individual validators to operate on their own.
To combat this, they...
🖥️ Create services that consume less computer resources
🔁 Allows validators to delegate complex tasks to other parties with better equipment
🎖️ Special rewards for Individual Validators to encourage them to continue participating in the network
Let's keep centralization to a minimum!
😬 People aren't just worried about what EigenLayer can do for Ethereum
Problems arising within the network also worry them — mainly conflicts of interest.
A conflict of interest can arise if a person operating an EL node, also holds a partial stake in a project on EigenLayer and faces a transaction that could harm their investment.
They may act in their own self-interest instead of in the interest of the network.
To prevent these problems, EL uses: 👇
🛡️ Smart tools to ensure everyone complies with regulations
💰 Pre-stakes cause operators to trade their coins to maintain integrity
🌐 A combination of validators to prevent anyone from having too much influence
👀 Community follows to maintain fairness
