Significant modifications to Ethereum’s proof-of-stake (PoS) mechanism have been proposed by Vitalik Buterin.
The main idea behind Buterin’s proposal is to change how Ethereum handles validator signatures.
At now, Ethereum supports around 895,000 validator objects, which is a very large quantity.
This high quantity is meant to improve decentralisation by allowing more people and organisations to take part in staking. Unfortunately, this design places a heavy computational burden on the Ethereum chain as it involves processing a huge number of signatures each slot.
Rethinking signature processing
However, Buterin notes that the existing system requires intricate technological procedures, such as the optimisation of signature operations and the transmission of attestation over several subnets.
Furthermore, there is no effective quantum-resistant substitute for the system, and SNARKing signatures and fork choice fixes become more difficult to create.
The fact that 32 ETH is still a high minimum staking requirement shows that, despite these efforts, the aim of making staking accessible to the general public remains unreachable.
Buterin offers a solution: let’s stop expecting to process a record number of signatures in each slot.
Exploring alternative approaches
Three possible strategies to lower the quantity of signatures per slot are described in the post.
The initial strategy is concentrating solely on decentralised staking pools, with the possibility of increasing the minimum deposit amount and restricting the quantity of validators.
In the second, a two-tiered staking mechanism is proposed, with a light layer for further security and a heavy one for finalisation.
The third strategy, rotating participation, bases participation probability on stake amount and chooses a subset of validators for each slot.
There are trade-offs associated with each strategy in terms of equality, security, and complexity of staking. Choosing a course of action depends on striking a balance between these elements.
