Vitalik Buterin Proposes Three Ways To Simplify Ethereum Staking Features

Ethereum founder Vitalik Buterin. (Photo; Doc. Coinrepublic)

JAKARTA - Ethereum, one of the largest crypto platforms in the world, is in the process of transitioning from the proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS). This change aims to increase efficiency, security and scalability of the Ethereum network, which is currently facing problems such as high transaction fees, large energy consumption, and network bottlenecks.

However, the switch to PoS also poses new challenges, mainly related to digital signature management, which is proof that validators have participated in the block validation process. In PoS, validators are entities that deposit a number of ether, Ethereum cryptocurrencies, for the right to validate blocks and get rewards.

The number of signatures required for each slot, which is the time interval in which one block is created, currently stands at 262,144, which makes the validation process very complex and burdens the network.

To address this issue, Vitalik Buterin, co-founder of Ethereum, recently proposed three potential solutions in a post on the Ethereum Research forum. These three solutions aim to simplify the validation process by reducing the number of necessary signatures to just 8,192 per slot, thereby simplifying and reducing network loads.

Changes In Staking Pool Structure

The first solution proposed by Buterin is to change the staking pool structure, namely the validator group that combines their resources to increase validation opportunities and share rewards.

For additional information, the PoS mechanism allows staking, namely storing crypto assets at a certain time in the network. Staker will act as a validator. For its role in securing the network, stakers will be rewarded in the form of crypto assets.

Buterin suggests increasing the minimum number of ether required to run the validator, so small validators must join the staking pool to keep participating. Thus, the total number of validators will decrease, and so will the number of signatures.

Staker Distribution

The second solution proposed by Buterin is to implement a two-tier staking system, which is to differentiate between stakers with different responsibilities and requirements. These two levels of stakers are the main stakers and secondary stakers. Stakers are the parties who stake ETH.

The main staker has heavier requirements, such as depositing more ether, running more advanced hardware, and signing more blocks. Secondary stakers have milder requirements, such as depositing less ether, running simpler hardware, and signing fewer blocks.

These two staker levels will be integrated differently in the block finalization process, namely a process in which the blocks are permanently confirmed and cannot be canceled. The main staker will be responsible for the finalization of the main block, which occurs every 64 slots or about 12 minutes. The secondary staker will be responsible for the finalization of the secondary block, which occurs every slot or about 12 seconds as reported by Coingape.

This separation can create a more balanced system, where responsibility and rewards are in line with different staker capabilities and commitments. The main staker will get a bigger reward, but also take a greater risk if they make a mistake or cheat. The secondary staker will get a smaller reward, but also take a smaller risk. However, this solution also introduces complexity in managing these two staker levels and ensures fair and effective participation of both.

Randomly Voted Validator Elections

The final solution proposed by Buterin is to use a rotating validator system, which is to randomly select a group of validators for each slot, thus distributing workload more evenly across the network. Thus, no validator has to sign all blocks, but only a fraction of them. This can reduce the number of necessary signatures, and also improve network security by preventing attacks against specific validators.

However, this solution also introduces a new complexity, namely a random selection process that must ensure justice and transparency while maintaining network security and efficiency. This solution also requires good coordination between different validators, and considering the possibility of inactive or dishonest validators.

Each solution proposed by Buterin has its own advantages and challenges. Buterin admits that there are no perfect solutions, and that each solution requires further testing and evaluation before it is implemented.

Buterin also stressed that these solutions are not only relevant to Ethereum, but also to other crypto networks that use or intend to use PoS as their consensus mechanism. PoS is considered an alternative that is more environmentally friendly and more democratic than PoW (proof-of-work), which requires a lot of energy and tends to benefit miners who have more powerful hardware.