Vitalik Buterin’s Perspective on Adding Protocols to Ethereum
Vitalik Buterin, the co-founder of Ethereum, has expressed his views on incorporating certain protocols into Ethereum’s code versus keeping them separate from the blockchain. In his blog post, Buterin discusses various protocols such as account abstraction protocol ERC-4337, ZK-EVMs, private mempools, code precompiles, and liquid staking. While he favors integrating some protocols like ERC-4337 into Ethereum’s code, he believes that each protocol presents complex tradeoffs that will continue to evolve over time.
Concerns about Concentration of Liquid Staking Providers
Buterin also raises concerns about the concentration of liquid staking providers in Ethereum. Currently, the liquid staking pool Lido controls more than 32% of staked ether, although this is distributed among different validators. Buterin acknowledges that while Lido and Rocket Pool (the top providers) have safety mechanisms in place, there may be additional risks associated with their dominance.
Decentralizing Liquid Staking
Instead of relying on moral pressure to encourage a more diverse set of staking providers, Buterin suggests exploring changes to Ethereum’s protocol to further decentralize liquid staking. This could involve modifying RocketPool’s approach or granting extra governance powers to a randomly selected committee of small stakers.
Hot Take: Enhancing Protocol Integration and Decentralization in Ethereum
Vitalik Buterin’s perspective on adding protocols to Ethereum’s code highlights the complexities involved in striking a balance between integration and decentralization. While some protocols may benefit from being enshrined within the code, others may require a more flexible approach. Additionally, addressing concerns regarding the concentration of liquid staking providers is crucial for ensuring the security and stability of Ethereum. By exploring protocol changes and empowering smaller stakers, Ethereum can enhance its integration capabilities and promote a more decentralized ecosystem.
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