Ethereum
Currently, each validator operates from a single node, and downtime can result in penalties. Buterin described a possible method where staking keys are divided among several nodes.
He outlined, “The key is secret-shared across a few nodes, and all signatures are threshold signed“, which assures that validation will “work correctly” as long as a majority of those nodes are functioning properly.
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This update would allow users to avoid depending on complex third-party solutions. With Buterin’s approach, the Ethereum blockchain could support up to 16 “virtual identities” that serve as separate validators but act as a group for decisions.
Penalties and rewards would be based on the actions of the cluster, which makes participation safer for each user.
Current implementations of distributed validators do not achieve full consensus at the validator level. However, they are easier to use, and adding them to the protocol could streamline the staking experience for everyone involved.
Larger holders of Ethereum would especially benefit, as they could operate their own distributed validator setups without relying on additional providers.
Self-staking might also become much more common if managing it becomes less complicated and more reliable.
On January 11, Buterin urged the crypto industry to build decentralized stablecoins not tied to a single fiat like the US dollar. What did he say? Read the full story.
