Ethereum

Major

Coin

<ul class="wp-block-list news-points">
 <li>Vitalik Buterin has identified potential risks in the Ethereum network. </li>
 <li>Ethereum risks Proof-of-Stake centralizing because of economic pressure. </li>
 <li>The proof-of-Stake mechanism would naturally lead to large stakers dominating. </li>
</ul>  
Ethereum co-founder Vitalik Buterin has identified potential risks in the Ethereum network, especially around the blockchain’s staking protocol. According to Buterin, Ethereum risks Proof-of-Stake centralizing because of economic pressure. The co-founder stated that the existence of economies of scale in the core Proof-of-Stake mechanism would naturally lead to large stakers dominating and small stakers dropping out to join large pools.  
Related:&nbsp;<a href="https://coinedition.com/what-ethereum-migration-to-proof-of-stake-means-to-web3-ceos/" rel="noopener noreferrer nofollow">What Ethereum Migration to Proof-of-Stake Means to Web3 CEOs</a>  
In a recent publication, Buterin further highlighted that the dropping out of small stakers to join the larger ones could expose the Ethereum network to higher risks of 51% attacks, transaction censorship, and other crises. The blockchain expert also cited the possibility of risking value extraction, where only a small group would claim all the value meant to go to Ethereum’s users.  
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The post <a href="https://coinedition.com/vitalik-buterin-highlights-two-major-risks-on-the-ethereum-network/" rel="noopener noreferrer nofollow">Vitalik Buterin Highlights Two Major Risks on the Ethereum Network</a> appeared first on <a href="https://coinedition.com" rel="noopener noreferrer nofollow">Coin Edition</a>.

Vitalik Buterin Highlights Two Major Risks on the Ethereum Network

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