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Vitalik Buterin published a technical paper "Protocol and staking pool changes that could improve decentralization and reduce consensus overhead". Vitalik analyzes the current staking system. Main theses: ▫️Ethereum two-tiered staking: There is a staking model where participants are divided into node operators (those who run nodes and provide collateral) and delegators. ▫️Problems of the current system: - Centralization risk in node operators. - Needless consensus layer burden due to the large number of signatures Ethereum has to verify. ▫️Role of delegators: The paper discusses what role delegators can play so that their participation is meaningful and affects the security and decentralization of the network. ▫️Empowering Delegators: ways to strengthen the role of delegators, including better voting tools within pools, more competition between pools, and the introduction of protocol-level delegation are suggested. https://notes.ethereum.org/@vbuterin/staking_2023_10

Vitalik Buterin published a technical paper "Protocol and staking pool changes that could improve decentralization and reduce consensus overhead".

Vitalik analyzes the current staking system.

Main theses:

▫️Ethereum two-tiered staking: There is a staking model where participants are divided into node operators (those who run nodes and provide collateral) and delegators.

▫️Problems of the current system:

- Centralization risk in node operators.

- Needless consensus layer burden due to the large number of signatures Ethereum has to verify.

▫️Role of delegators: The paper discusses what role delegators can play so that their participation is meaningful and affects the security and decentralization of the network.

▫️Empowering Delegators: ways to strengthen the role of delegators, including better voting tools within pools, more competition between pools, and the introduction of protocol-level delegation are suggested.

https://notes.ethereum.org/@vbuterin/staking_2023_10

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