- Vitalik Buterin for lowering the solo staking minimum to as low as 1 ETH so more people will participate.
- Toward this end, lower staking requirements may lead to even better network decentralization and security because it could attract more solo stakers.
- To achieve such a network, the current stake of 32 ETH is suggested to be lowered to 16-24 ETH with further downscaling scheduled continually as technology advances.
Vitalik Buterin, the co-founder of Ethereum, called for a decrease in the ETH deposit. This is necessary for solo staking, a change that would potentially increase the decentralization of the network. Presently, the Ethereum solo miners need to commit 32 ETH to the staking process of the network. However, a strong entry point has been viewed as a disadvantage, nonetheless narrowing down the number of potential solo stakers.
Lowering the Obstacles for Aspirants
A few weeks back, Buterin suggested that the staking should be as low as 1 ETH to make solo staking a possibility that many can engage in. He pointed out that Ethereum users who stake their coins individually are also important to the network because they do not use third parties to stake their coins or pool theirs with others.
Normal stakers run full nodes, but there will be problems of 51% attacks that solo stakers must defend against. Buterin opines that to achieve this, the geth client must successfully encourage more solo stakers, no matter the quantity. Thus, the effects on Ethereum’s decentralization and security would be monumental.
A Path Toward Greater Network Strength
To encourage this change, they proposed a temporary solution suggested by Buterin. To this end, he suggested increasing bandwidth costs while decreasing the staking deposit to be at least 16 or 24 ETH. This, he said, would be a win-win swap, lessening the barriers to staking while not significantly weighing on the system.
However, with “peerdas” (peer-directed protocols) and “single-slot finality” (SSF) fully developed, the bandwidth needs could be lowered yet again, bringing down the staking deposit minimum to 1 ETH.The proposed change of decreasing the minimum staking deposit to 1 ETH may ultimately allow more individuals to stake on their own, ultimately increasing the probability of higher participation.
Buterin sees this paradigm shift as vital to ensure Ethereum remains decentralized, scalable, and secure. According to him, the staking system as a way to decentralize Ethereum would be much more effective, moreover, more people will be able to share their funds and receive rewards from the growth of the network.
The post Why Vitalik Buterin Thinks Reducing Ethereum’s Staking Minimum to 1 ETH Will Strengthen the Network appeared first on Crypto News Land.
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