Ethereum

Bitcoin

<h4 style="color: #252525;"><strong><span style="color: #252525;">Re-staking has been one of the recent developments in <a href="https://www.altcoinbuzz.io/?s=ethereum" target="_blank" rel="noopener">Ethereum</a>, taking center stage. And the core idea behind this trend is: When you can rent a security system, why create your own? </span></strong></h4> 
<p style="color: #252525;"><span style="color: #252525;">Re-staking is a process where ETH tokens that are “staked” on Ethereum can be reused for smaller applications and networks. In this article, we’ll discover why Vitalik thinks this.</span></p> 
<h5><strong>What is re-staking?</strong></h5> 
<p style="color: #252525;"><span style="font-weight: 400; color: #252525;">Despite the popularity of re-staking, Ethereum’s co-founder, Vitalik Buterin, is far from a big fan. The popular developer cited the risk of “centralization” as one of the drawbacks of re-staking. In addition, Buterin said he was concerned that re-staking might bring about risks that would jeopardize the network’s security.</span></p> 
<p style="color: #252525;"><span style="font-weight: 400; color: #252525;">Furthermore, he noted that trends such as re-staking can overcomplicate the Ethereum consensus mechanism beyond its main design. Buterin expressed concerns in a blog <a href="https://vitalik.ca/general/2023/05/21/dont_overload.html" target="_blank" rel="noopener">post</a> about projects that could excessively increase risks in the Ethereum ecosystem. And complicate the roles of Ethereum validators outside their fundamental responsibility of validating the standards of the fundamental protocol.</span></p> 
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 <p lang="en" dir="ltr">Do not:</p> 
 <p>a) don’t build complex financial primitives on restaking – they can spiral out <br>b) don’t rely on Ethereum to fork for application layer errors – this is a super important principle<br>c) do not use subjective slashing – as it is subject to tyranny of the dishonest majority</p> 
 <p>— Sreeram Kannan (@sreeramkannan) <a href="https://twitter.com/sreeramkannan/status/1660388939369431042?ref_src=twsrc%5Etfw">May 21, 2023</a></p>
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<h5 style="color: #252525;"><strong>Buterin on the Risks Involved With Re-Staking</strong></h5> 
<p style="color: #252525;"><span style="font-weight: 400; color: #252525;">Furthermore, Buterin believes that re-staking can serve low-risk purposes. However, some circumstances can affect the main net’s security. This includes slashing validators for third-party claims. Slashing refers to the punishment given to validators who engage in illegal acts, such as processing transactions irregularly.</span></p> 
<p style="color: #252525;"><span style="font-weight: 400; color: #252525;">Buterin urged his followers to be “wary of application-layer projects taking actions that risk increasing the “scope” of blockchain consensus to anything other than verifying the core Ethereum protocol rules.”</span></p> 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <p lang="en" dir="ltr"><img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f9e9.png" alt="🧩" class="wp-smiley" style="height: 1em; max-height: 1em;"> Buterin's main concern is that re-staking could make the roles of Ethereum validators more complex than they need to be. Validators already have a crucial role in verifying the core protocol rules, adding more responsibilities could make their job more challenging. 7/9</p> 
 <p>— YFarmX <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f4c8.png" alt="📈" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@YFarmX) <a href="https://twitter.com/YFarmX/status/1668398523136524291?ref_src=twsrc%5Etfw">June 12, 2023</a></p>
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<p style="color: #252525;"><span style="font-weight: 400; color: #252525;">He noted that such ideas are often approached without considering the possible risks. And they can become misaligned with the core community goal. Buterin added that such a process has no limiting principle. And that a blockchain community could easily become burdened with an increasing number of “mandates” over time if such a process were to take place.</span></p> 
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 <p lang="en" dir="ltr">Vitalik Buterin warns against overcomplicating Ethereum's consensus with re-staking mechanisms, emphasizing the need to preserve simplicity and security. Caution is necessary to prevent unnecessary risks and maintain the core role of Ethereum validators.<a href="https://t.co/wF0Q6VCMLf">https://t.co/wF0Q6VCMLf</a></p> 
 <p>— Francesco Trading Advisor (@FrancescoTradi2) <a href="https://twitter.com/FrancescoTradi2/status/1663186379193425924?ref_src=twsrc%5Etfw">May 29, 2023</a></p>
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<p style="color: #252525;"><span style="font-weight: 400; color: #252525;">This would force the community to make a difficult choice between a high yearly risk of splitting and some sort of de facto formalized bureaucracy that controls the chain in its entirety.</span></p> 
<p style="color: #252525;"><span style="font-weight: 400; color: #252525;">Buterin suggested that “we should instead preserve the chain’s minimalism and support uses of re-staking that do not seem like slippery slopes towards extending the role of Ethereum consensus.”</span></p> 
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<h5 style="color: #252525;"><br style="color: #252525;"><strong>Disclaimer</strong><br> The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.<br style="color: #252525;"><br style="color: #252525;"><br style="color: #252525;"></h5> 
<p>The post <a rel="nofollow" href="https://www.altcoinbuzz.io/cryptocurrency-news/vitalik-buterin-doesnt-like-re-staking-heres-why/">Vitalik Buterin Doesn’t Like Re-staking. Here’s why</a> appeared first on <a rel="nofollow" href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

Vitalik Buterin Doesn’t Like Re-staking. Here’s why

Altcoin Buzz

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