Category Archives: Vitalik Buterin
Vitalik Buterin Suggests New Way To Decentralize Ethereum Staking – Cryptonews
Last updated: March 27, 2024 12:29 EDT | 2 min read
Ethereum staking has a looming centralization problem but the networks co-founder Vitalik Buterin proposed a new way to address the issue on Tuesday.
In a blog post, Buterin suggested modifying the penalty system for Ethereum validators by increasing the cost of colluded misbehavior.
Specifically, the method would impose large penalties on validators who misbehave even accidentally if a large share of separately staked ETH misbehaves simultaneously.
The theory is that if you are a single large actor, any mistakes that you make would be more likely to be replicated across all identities that you control, even if you split your coins up among many nominally separate accounts, he wrote.
In September 2022, Ethereum switched to a proof-of-stake consensus mechanism, which lets users earn a yield on their ETH by locking their coins within the protocol. It also places control of block validation and transaction processing in the hands of those who hold the most ETH.
That includes centralized exchanges and staking providers like Lido, Coinbase, and Binance, which offer services pooling smaller investors ETH together to stake on their behalf. Even asset managers like Fidelity are looking to use some of users assets for staking purposes.
This has raised community concerns around potential collusion among large Ethereum validators to launch a hostile takeover of the network especially if compelled by the government. JPMorgan, for example, noted in October that the Merge and Shanghai upgrades have made Ethereum more centralized.
While large Ethereum validators already face greater slashing penalties explicit cuts to a validators stake compared to smaller stakers, Vitalik said penalties around such an uncommon event arent enough to move the needle on centralization.
This post proposes to extend a similar sort of anti-correlation incentive to more mundane failures, such as missing an attestation, that nearly all validators make at least occasionally, he explained.
Theoretically, such a system could create economic disincentives around centralized staking and help reduce economies of scale in the industry.
Last week, Buterin also proposed a rainbow staking system, which would create new classes of Ethereum stakers based on their goals.
The system would reduce the economic and technical burden of independent staking that asks everything of everyone, which has driven ETH investors to stake with centralized services instead.
We have become very dependent on social pressure + virtue, he said regarding centralized staking providers earlier this month. If it is inevitable, we should be clearer about whether we rely on incentives or social pressure + virtue, rather than excessively rely on the latter.
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Vitalik Buterin Suggests New Way To Decentralize Ethereum Staking - Cryptonews
Shiba Inu ‘Massively Outperformed My Expectations’: Vitalik Buterin – Watcher Guru
Ethereum co-founder Vitalik Buterin recently took to X and said that Shiba Inu (SHIB) has massively outperformed his expectations. Buterins comments came after an X user expressed confusion about his donations to FLI (Future of Life Institute), a non-profit focusing on developing safety rules for Artificial Intelligence (AI).
There were some rumors that FLI was receiving undervalued assets as donations. However, the Ethereum co-founder highlighted that he faced a similar situation with his Shiba Inu (SHIB) donations to CryptoRelief India during the COVID pandemic.
Also Read: Shiba Inu vs. Dogecoin: ChatGPT Predicts If SHIB Can Outperform DOGE
Buterin stated, Its the same situation as with cryptorelief: I quickly sent a pile of SHIB, thinking it would surely drop 100x in a few days, so I had to act fast, and expecting they would be able to cash out at most like $10-25m. But of course, SHIB massively outperformed my expectations.
It's the same situation as with cryptorelief: I quickly sent a pile of SHIB, thinking it would surely drop 100x in a few days so I had to act fast, and expecting they would be able to cash out at most like $10-25m. But of course SHIB massively outperformed my expectations
Shiba Inu (SHIB) is already undergoing a bullish reversal, reclaiming the $0.00003 level. The popular dog-themed crypto has rallied 7% in the daily charts, 27% in the weekly charts, and 223.7% over the previous month. However, the asset is still down by 6% in the 14-day charts.
Also Read: If You Put $1000 In Shiba Inu on Jan 1, 2024, How Much Could You Make?
Moreover, some platforms anticipate SHIB to continue rallying over the next few weeks. According to CoinCodex, SHIB could hit a new all-time high next month. The platform predicts SHIB to reach $0.000106 on Apr. 24, 2024. Reaching $0.000106 from current levels would translate to a growth of over 240%.
Changelly also paints a bullish picture for Shiba Inu (SHIB) for April. The platform anticipates SHIB to reach a new all-time high on Apr. 21, 2024, hitting $0.00009161.
SHIBs bullish outlook for April could be due to Bitcoins (BTC) halving event, which may trigger another bull run for the crypto market.
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Shiba Inu 'Massively Outperformed My Expectations': Vitalik Buterin - Watcher Guru
Vitalik Urges Ethereum Developers To Target Millions Of Users Post-Dencun – The Defiant – DeFi News
Ethereums chief scientist said Ethereum is ready to support applications servicing millions of users following Dencun's massive L2 fee reductions.
Vitalik Buterin, the chief scientist and co-founder of Ethereum, penned a blog post calling on developers to pivot their focus towards building new applications that could serve millions of users following the activation of its Dencun upgrade earlier this month.
Ethereums highly-anticipatedDencun forkwent live on March 13, ushering feereductionsof up to95%on Layer 2 networks supportingEIP-4844 the main upgrade included in Dencun. The fee reduction also precipitatedtriple-digitincreases in transaction volume on leading L2s.
Buterin described Dencun as the most significant Ethereum upgrade sinceThe Merge, which transitioned the network to Proof of Stake consensus in September 2022.
As of two weeks ago, the two largest changes to the Ethereum blockchain the switch to Proof of Stake, and the re-architecting to blobs are behind us, Buterinsaid.
With fees on many Layer 2s now sitting below six cents, Buterin issued a challenge to developers to begin building applications addressing non-financial use cases that could serve millions of users.
Pretty much every crypto application that is not financial speculation depends on low fees and so while we have high fees, we should not be surprised that we mainly see financial speculation, Buterin said. Now that we have blobs, this key constraint that has been holding us back all this time is starting to melt away What this means to developers is simple: we no longer have any excuse.
Vitalik described the first nine years since Ethereums mainnet launch as a training stage, with low fees setting the stage for large-scale applications to take flight on the network. He said the tools are now available to build protocols that are both cypherpunk and user-friendly, urging developers to work on new applications targeting mainstream use cases including identity, reputation, and governance.
Ethereum is no longer just a financial ecosystem, Buterin continued. It's a full-stack replacement for large parts of centralized tech, and even provides some things that centralized tech does not... We are building tools for millions of people to use. Across the ecosystem, we need to fully readjust mindsets accordingly.
Vitalik noted that more progress must be made on L2, including further mechanisms improving scalability, the efficiency of blobs, data compression, and security.
Buterin said that just five of the 47 Layer 2 networks tracked by L2beat have reached stage 1 decentralization, meaning they have only limited training wheels in place. In a previous post, Vitalik said stage 1 decentralization means that a network boasts a fraud or validity proof scheme, at least a seven-day delay on upgrades, and a multisig account with at least six of eight signers if a security council can override transactions.
The ecosystem's standards need to become stricter, Buterin said. So far, we have been lenient and accepted any project as long as it claims to be on a path to decentralization. By the end of the year, I think our standards should increase and we should only treat a project as a rollup if it has actually reached at least stage 1.
Buterin added that Ethereums core developers will continue to work on Layer 1 scaling in the background, describing the introduction of Verkle Trees with Ethereums upcomingPectrafork as the last remaining truly significant upgrade still to come to Ethereums base layer.
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Vitalik Urges Ethereum Developers To Target Millions Of Users Post-Dencun - The Defiant - DeFi News
This is Why Vitalik Buterin is Skeptical About the Metaverse – BeInCrypto
Vitalik Buterin, Ethereums co-founder, recently voiced skepticism towards the Metaverse, critiquing its current perception and marketing.
During his appearance at the BUIDL Asia conference in Seoul, Buterin elucidated his concerns, challenging the prevalent understanding of the Metaverse.
According to Vitalik Buterin, the Metaverse is envisioned as a decentralized virtual world. It is supposed to include immersive social experiences, avatars, augmented reality (AR), and blockchain technology as its foundation.
However, Buterin critiques the Metaverses current representation, arguing that its often perceived more as a brand than a tangible product.
The Metaverse is one of those things that is very poorly defined. It is often seen more as a brand name than a product. It feels like everyone has this abstract idea of a virtual universe where they can all participate and be part of and that virtual universe is not actually owned by anyone. Its frequently associated with virtual reality, where needs are simpler, akin to wanting a laptop without the laptop. Its super useful but not really a-verse, Buterin said.
Buterins perspective sheds light on the necessity of integrating various elements of the digital world. These include cryptocurrency, VR, AR, and artificial intelligence (AI) to fully realize the Metaverses capabilities. He believes that by combining these components in a meaningful way, one can unlock a truly immersive and decentralized virtual environment.
Read more: Building Bridges: How to Connect Virtual Worlds to the Metaverse
Furthermore, Buterin touched upon the importance of account abstraction in achieving mainstream adoption. He pointed out that for account abstraction to succeed, it must find the right balance between security and convenience. This is an area where Ethereum is still striving for improvements.
Buterins critique serves as a reminder that the Metaverses development is still in its early stages, with much work needed to achieve its ambitious vision.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that ourTerms and Conditions,Privacy Policy, andDisclaimershave been updated.
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This is Why Vitalik Buterin is Skeptical About the Metaverse - BeInCrypto
Vitalik Buterin wants rollups to hit stage 1 decentralization by year-end – TradingView
Ethereum co-founder Vitalik Buterin is proposing to raise the bar on whats considered a rollup in the Ethereum ecosystem and suggests developers should aim to get their decentralization efforts in order by the end of the year.
The comments came in his latest blog post on March 28, reflecting on the year ahead following Ethereums latest Dencun upgrade, which significantly reduced transaction fees for rollups on layer 2s.
Buterin noted that Ethereum was in the process of a decisive shift from a very rapid L1 progress era to an era where layer-1 progress will still be very significant.
He also said that Ethereums scaling efforts have shifted from a zero-to-one problem to an incremental problem, as further scaling work will focus on increasing blob capacity and improving rollup efficiency.
He continued to state that the ecosystems standards will need to become stricter, adding:
By the end of the year, I think our standards should increase and we should only treat a project as a rollup if it has actually reached at least stage 1.
Stage 1 is Buterins classification of layer 2s decentralization progress, whereby a network has advanced enough in terms of security and scaling but is not yet fully decentralized (which would be Stage 2).
He observed that only five of the layer-2 projects listed on L2Beat are at either Stage 1 or 2, and only Arbitrum is fully Ethereum Virtual Machine-compatible.
The next steps on the roadmap include implementing data availability sampling to increase blob capacity to 16MB per slot and optimizing layer-2 solutions through techniques such as data compression, optimistic execution and improved security.
After this, we can cautiously move toward stage 2: a world where rollups truly are backed by code, and a security council can only intervene if the code provably disagrees with itself, he added.
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Vitalik Buterin wants rollups to hit stage 1 decentralization by year-end - TradingView
Ethereum Founder Vitalik Says Worldcoin is Doing a Great Job – The Crypto Basic
Ethereum co-founder Vitalik Buterin has reiterated his commendation for the Worldcoin (WLD) teams efforts to strengthen privacy measures within their platform.
Buterin expressed this appreciation in a recent post on X, acknowledging Worldcoins proactive approach to addressing privacy concerns raised by critics. He pointed out that the team has shown dedication to minimizing data usage.
In his words:
IMO, they actually have been doing quite a good job of taking the privacy critiques seriously and designing their system to be more and more data-minimal.
The Ethereum co-founder issued this positive remark following a report that the CNPD, Portugals data regulator, has ordered Worldcoin to halt biometric data collection for 90 days.
This move represents the latest regulatory setback for Worldcoins iris-scanning project, which has faced privacy concerns in various countries.
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In response to the development, X user Louis Anslow attempted to highlight the irony of the situation by mentioning that he had his privates scanned in Portugal in 2021 using a German orb.
On this premise, Vitalik Buterin commented that the Worldcoin team has been doing a great job managing the criticisms directed toward their iris-scanning project and data collection practices. Additionally, he expressed admiration for the modern cryptography that the team is championing.
This latest endorsement reaffirms Buterins earlier remarks, in which he suggested that Worldcoins dedication to privacy protection surpasses those of other centralized authentication solutions.
Individuals sign up on Worldcoin by having their iris scanned without providing traditional identification details such as name, physical address, email address, or phone number.
Significantly, Worldcoin incentivizes participants to undergo facial scans by offering a digital ID and free crypto, WLD. Worldcoins website shows over 4.6 million people from 120 countries have registered for this program.
While Worldcoin has seen a warm reception from countries like Argentina, it has faced regulatory concerns from others like Kenya. Portugal is the latest to join the list of countries scrutinizing the Worldcoin iris scanning project.
Earlier this week, Portugals data regulator expressed concerns over the potential threat to citizens data protection rights. The regulator cited a high risk that warrants immediate intervention to avert serious harm.
Meanwhile, the regulator revealed that over 300,000 individuals in Portugal have submitted their biometric data to Worldcoin.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basics opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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Ethereum Founder Vitalik Says Worldcoin is Doing a Great Job - The Crypto Basic
Vitalik Reveals Explains What Next after Ethereum Blobs – Crypto Times
Just over two weeks after Ethereums successful Dencun upgrade deployed EIP-4844 or proto-danksharding to help reduce Layer 2 gas fees, co-founder Vitalik Buterin has hinted at the next key step verifying the new blob data with a conservative version of Data Availability Sampling (DAS) called PeerDAS.
Buterin noted that with blob activation completed, Ethereum scaling ceased to be a zero-to-one problem, and became a one-to-N problem. Verifying blobs with PeerDAS paves the way for introducing additional scaling solutions to the protocol.
The ultimate aim is to enable full data availability sampling, allowing up to 16MB of data per slot to be utilized. However, this will be a progressive process, with blob capacity increasing incrementally behind the scenes without disrupting users or applications.
In the meantime, the Dencun team will work on optimizing Layer 2 platforms to maximize their usage of the newly available blob data space. Several Ethereum L2s have already seen significant reductions in gas fees since integrating EIP-4844.
With blob verification next on the roadmap, Ethereum is taking another key step toward sustainable scaling and wider adoption through lower transaction costs.
Also Read: Everyworld Web 3 Platform Hits 225K Users in Beta
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Vitalik Reveals Explains What Next after Ethereum Blobs - Crypto Times
Vitalik Buterin Pioneers A Fresh Approach To Decentralize Ethereum Staking – Blockchain Magazine
March 28, 2024 by Diana Ambolis
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Vitalik Buterin, Ethereums Co-founder, Proposes Penalizing Validators Based on Deviation from Average Failure Rate Ethereum co-founder Vitalik Buterin recently proposed a method to promote greater decentralization within the Ethereum network by implementing penalties for correlated failures among validators. In a post on March 27 to the Ethereum Research forum, Buterin advocated for reinforcing decentralized staking
Ethereum co-founder Vitalik Buterin recently proposed a method to promote greater decentralization within the Ethereum network by implementing penalties for correlated failures among validators.
In a post on March 27 to the Ethereum Research forum, Buterin advocated for reinforcing decentralized staking through anti-correlation incentives. His idea suggests that if multiple validators controlled by the same entity experience failures simultaneously, they would face more severe penalties compared to individual failures.
Buterin highlighted the likelihood of correlated failures among validators within the same cluster, such as staking pools, often sharing infrastructure. His proposal involves penalizing validators based on their deviation from the average failure rate, with higher penalties imposed when numerous validators fail in a given slot.
Also, read- Ethereums BlobScriptions Soar, Carrying Blob Fees Along for the Ride
By simulating this approach, Buterin believes it could diminish the advantage enjoyed by larger Ethereum stakers over smaller ones, as significant entities are more prone to causing spikes in failure rates due to correlated failures.
The proposed benefits include encouraging decentralization by necessitating separate infrastructure for each validator and making solo staking economically competitive relative to staking pools.
Buterin also suggested exploring other penalty schemes to mitigate the advantage of larger validators over smaller ones, as well as assessing the impact on geographical and client decentralization.
However, Buterin did not address the possibility of reducing the staking amount from the current 32 Ether, which is approximately valued at $3,560. This omission may be noteworthy, considering the popularity of staking pools and liquid staking services like Lido, which enable participation with smaller amounts of ETH.
As of now, Lido boasts $34 billion worth of ETH staked, representing about 30% of the total supply. While these services have gained traction, Ethereum advocates and developers have raised concerns about the dominance and potential cartelization of platforms like Lido, which could lead to outsized profits compared to non-pooled capital.
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Vitalik Buterin Pioneers A Fresh Approach To Decentralize Ethereum Staking - Blockchain Magazine
Ethereum Founder Vitalik Says Shiba Inu Outperformed His Expectations – The Crypto Basic
The Ethereum founder Vitalik Buterin has admitted that Shiba Inu (SHIB) massively outperformed his earlier expectations for the project.
Buterin disclosed this while reacting to a statement from Nathan Young, a Web Designer and Director at Frostwork. Young spotlighted the crypto assets held by Future of Life Institute (FLI), a non-profit focused on AI research, noting that he never believed the organizations crypto balance amounted to much.
For context, FLI was one of the beneficiaries of Vitalik Buterins Shiba Inu donations. Recall that the Ethereum founder received half of the entire Shiba Inu supply from Ryoshi, SHIBs anonymous founder. Buterin burned 410 trillion tokens and sent the rest to non-profits in May 2021.
One of these non-profits was FLI. Nathan Young had believed that the Shiba Inu tokens received by FLI were valued at low prices, but information from a filing revealed that their worth actually amounted to $665 million.
Responding to Youngs disclosure, Buterin noted that the FLI case is similar to what he observed with CryptoRelief, an Indian charity. It bears mentioning that Buterin also donated his SHIB tokens to CryptoRelief.
He sent 50.6 trillion SHIB to CryptoRelief on May 12, 2021. The worth of the tokens at the time stood at $1.2 billion. Interestingly, in his latest disclosure, Buterin revealed that he initially believed Shiba Inu would crash shortly after he received the tokens from Ryoshi.
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Notably, SHIB had already recorded a massive price rally before Buterin donated the tokens. However, the Ethereum co-founder expected the asset to crash within a short period, as is customary with memecoins. He had to move fast and donate these tokens before the expected price collapse.
Buterin noted that he was expecting CryptoRelief to at least be able to salvage $10 to $25 million from the donation before any drop in SHIBs price. However, his expectations did not materialize, as Shiba Inu continued to rally after the donation, eventually hitting its all-time high of $0.00008845 in October 2021, five months later.
But of course, SHIB massively outperformed my expectations, Buterin disclosed in his recent remarks, calling attention to how the canine-themed project defied the odds, pointing to its eventual failure. Three years later, Shiba Inu still retains relevance, battling to seal its spot among the top 10.
While SHIBs worth did drop by 30% shortly after Buterins donation to CryptoRelief, the token bounced back. At the all-time high value in October 2021, the assets were worth $4.42 billion. If the charity organization had held onto the tokens until now, theyd still hold $1.57 billion.
Vitalik Buterin has consistently underestimated the meme market due to its lack of utility. In 2022, the Ethereum founder was surprised at the massive amount of Shiba Inu tokens held by Crypto.com. The Shiba Inu project is now gradually tilting toward utility, constantly exceeding expectations from industry leaders like Buterin.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basics opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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Ethereum’s New Tech: Vitalik Buterin Introduces Rainbow Staking – BeInCrypto
Vitalik Buterin, a co-founder of Ethereum, announced the introduction of a new staking concept termed Rainbow Staking.
This initiative aims to revamp the economic structure of the network by implementing a dual-pronged staking mechanism. The approach distinguishes between heavy and light services, offering a framework that impacts the distribution of rewards.
Vitalik Buterin explained that Rainbow Staking introduces the two-dimensional Minimum Viable Issuance (2-D MVI). This model aims to optimize reward allocation between heavy services, which demand significant stake backing and play a vital role in network operations, and light services, characterized by their flexibility and ability to increase the networks preference entropy. This is critical for a censorship-resistant network, as it ensures a diverse range of transactions and interactions.
Another key focus of Rainbow Staking is on enhancing the role and value of solo stakers within the Ethereum ecosystem.
Traditionally overshadowed by larger staking pools, solo stakers under Rainbow Staking are recognized for contributing to network resilience. They serve as a buffer against potential failures by larger operators. Therefore, playing a crucial role in maintaining network activity during such downtimes.
With Rainbow Staking, we offer an alternative 2-D MVI where solo stakers are maximally effective participants on their own terms, achieving the goals which many have signed up for: Competitive economic returns with the ability to realize their preferences into the execution the chain, e.g., as ultimate backstops of chain liveness or as censorship-resistance agents, Barnab Monnot, Research Scientist at Ethereum Foundation, wrote.
Read more: Ethereum Restaking: What Is It And How Does It Work?
Therefore, Buterin proposes adjusting reward distribution to incentivize participation from solo stakers and smaller operators to promote a more inclusive economic model. This strategy is designed to shift the competitive model from focusing on a singular resource battle to a more diversified and equitable ecosystem.
The announcement of Rainbow Staking has sparked discussions within the cryptocurrency community regarding its potential impacts on the Ethereum network. Proponents argue that incentivizing a wider range of participants could lead to a more resilient and decentralized network.
Critics, however, raise questions about the implementation challenges and the potential for unintended consequences. Particularly, concerning network security and the dynamics between solo and pooled staking.
The biggest downside I see to your proposal is that it is complex, difficult to migrate to, [and] challenging to predict second-order effects. The first two points might not have any alternative other than defining a clear specification. For the last point, I would urge more research into areas such as tokenized claims, restaking, etc, Matt Stam, Founding Engineer at Succinct, said.
Read more: Ethereum (ETH) Price Prediction 2024 / 2025 / 2030
While the full implications of this new staking model remain to be seen, they reflect Ethereums efforts to explore innovative solutions that support its growth and sustainability.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that ourTerms and Conditions,Privacy Policy, andDisclaimershave been updated.
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Ethereum's New Tech: Vitalik Buterin Introduces Rainbow Staking - BeInCrypto