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Vitalik Buterin, the co-founder of Ethereum, has recently shared his thoughts on potential changes to Ethereum's staking mechanisms in a detailed blog post. In this post, he touches upon several key protocols and their integration into Ethereum's code, highlighting the trade-offs and challenges associated with each.
One of the central themes of Buterin's discussion revolves around the idea of whether certain protocols should be directly integrated into Ethereum's base layer or built "on top" of the blockchain. Among the protocols under consideration are the account abstraction protocol ERC-4337, ZK-EVMs (Zero-Knowledge Execution Environments), private mempools, code precompiles, and liquid staking.
Buterin's stance on this matter varies depending on the specific protocol. For instance, he leans more toward "enshrining" certain protocols like ERC-4337 directly into Ethereum's code, while he sees others, such as private mempools, as more suitable to be developed independently and added as layers on top of Ethereum.
However, Buterin acknowledges that each protocol presents a complex set of trade-offs, and the optimal approach may evolve over time as the Ethereum ecosystem matures and new insights emerge.
Another significant aspect of Buterin's blog post is his concern about the centralization of Ethereum's liquid staking providers. Currently, Lido, one of the leading liquid staking pools, controls over 32% of the staked Ether. While this control is distributed among various validators, it still raises concerns about centralization.
To address this issue, Buterin suggests that relying solely on "moralistic pressure" to encourage diversification among staking providers may not be sufficient. Instead, he contemplates potential changes to Ethereum's protocol that could enhance the decentralization of liquid staking. These changes might involve adjustments to the approach of liquid staking provider RocketPool or granting additional governance powers to a randomly selected committee of smaller stakers.
Buterin's reflections underscore the importance of striking a balance between innovation and decentralization within the Ethereum ecosystem. As Ethereum continues to evolve, discussions and decisions regarding protocol changes will play a crucial role in shaping its future development and ensuring its continued success as a decentralized blockchain platform.
