Ethereum (CRYPTO: ETH) co-founder Vitalik Buterin hesitates to stake a significant portion of his ETH holdings citing concerns about the existing infrastructure supporting the service.
In a recent interview with Bankless Podcast, Buterin said he's still concerned about staking a large part of his ETH trove for security reasons.
"Probably the biggest reason why I personally am not just staking all of my ETH, that I'm instead staking a fairly small portion, is because if you stake your ETH, it has to be all out, like the keys that access it have to be public on some system that's online, and for safety it has to be a multi-sig, and multi-sigs for staking are still fairly difficult to set up," he said.
Charles Hoskinson, who created Cardano (CRYPTO: ADA), responded to Buterin's statement:
I had to listen to this a few times. I'm just at a loss for words. All of our Ada is staked. Guess what that's how it's supposed to be for a properly designed Proof of Stake protocol. https://t.co/ye6va1DH06
— Charles Hoskinson (@IOHK_Charles) June 29, 2023
During the conversation, Buterin highlighted the EigenLayer protocol, emphasizing its ability to enable Ethereum validators and stakes to "re-stake" their assets onto emerging networks.
"The main challenge is that it creates centralization risks. Trustworthy stakes would be valued more by the system than untrustworthy stakes. Trustworthy stakes are much less likely to get slashed," he said.
Also Read: Buterin Honored With 'Rasputin'-Like Song — And You Can Mint It As An NFT For Free
"Constraints being what is good for the ecosystem and having constraints on building what new innovation can be unleashed based on this concept," he added.
Earlier, talking about regulations against crypto exchanges, Buterin said it's wrong that his competitors are dealing with those issues.
"I feel bad that Solana and other projects are getting hit in this way. They don't deserve it, and if Ethereum ends up 'winning' through all other blockchains getting kicked off exchanges, that's not an honorable way to win, and in the long term, probably isn't even a victory," he said.
The one comment I'll make is that I feel bad that @solana and other projects are getting hit in this way. They don't deserve it, and if ethereum ends up "winning" through all other blockchains getting kicked off exchanges, that's not an honorable way to win, and in the long term…
— vitalik.eth (@VitalikButerin) June 30, 2023
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