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Ethereum co-founder Vitalik Buterin has proposed a new framework to incentivize Ethereum decentralization by penalizing correlated failures among validators.

According to the research proposal submitted by Buterin, large-scale staking groups, and organizations have an undue advantage over smaller players, creating an imbalance in the decentralized staking sector.

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, the Ethereum co-founder said.

Buterin suggests that validators controlled by the same entity should receive a higher penalty if they fail together, compared to failing independently. The theory behind this approach is that mistakes made by a single large actor are more likely to be replicated across all the identities they control.

Staking pools and liquid staking services such as Lido remain popular among users, given how their platform allows for the participation of more stakers due to the lower amount of entry (in ETH). To date, Lido currently has an estimated $34 billion worth of ETH staked, representing around 30% of the total supply. Advocates and developers pushing for Ethereum decentralization have previously cautioned against Lidos dominance and the potential for cartelization, where outsized profits can be extracted compared to non-pooled capital.

Buterins analysis of recent attestation data revealed that validators within the same cluster, such as a staking pool, are more likely to experience correlated failures, likely due to shared infrastructure. To address this issue, he proposed penalizing validators proportionally to the deviation from the average failure rate. If many validators fail in a given slot, the penalty for each failure would be higher.

Based on simulations of this scenario, such a system could reduce the advantage of large Ethereum stakers over smaller ones, as large entities are more likely to cause spikes in the failure rate due to correlated failures.

The proposals potential benefits include incentivizing Ethereum decentralization by encouraging separate infrastructure for each validator and making solo staking more economically competitive relative to staking pools. Buterin notes that other options could be subjected to further analysis. This includes variations on the penalty schemes in order to minimize the average big validators advantage over smaller validators.

According to Buterin, its also worth examining the impact of such a framework in terms of geographic and client decentralization. However, he did not mention the possibility of reducing the solo staking amount from the current 32 Ether (ETH) or approximately $111,000 based on Ethers current price at roughly $3,500.

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Vitalik Buterin pushes for anti-correlation incentives in Ethereum staking - Crypto Briefing

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

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

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

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