Vitalik Buterin warns against risks of overloading the Ethereum network

Ethereum co-founder Vitalik Buterin warns against layer-1 driven recovery of layer-2 projects on the Ethereum blockchain.
Buterin outlines how re-staking initiatives or layer-1 soft forks could hurt Ethereum network’s consensus.
Buterin gives the green flag to dual-use of Ether staked by validators, but condemns the use of social consensus for layer-2 applications.

Vitalik Buterin, the co-founder of the largest smart contract blockchain network, published on Sunday a warning against the risks of overloading the Ethereum consensus layer. While Buterin is in favor of a dual use for staked Ether, the Ethereum co-founder warned against the use of the ETH consensus layer for layer-2 applications.

In a blog post, Buterin said that using the consensus layer for re-staking and soft forks could bring high systemic risks, leaving the Ethereum blockchain vulnerable.

Also read: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC set to punish greedy bulls

Ethereum consensus layer could get overwhelmed

The Ethereum consensus layer could be vulnerable to an attack if the blockchain gets overloaded. In his post, Buterin addressed concerns surrounding re-staking initiatives or layer-1 soft forks on the ETH blockchain.

Don't overload Ethereum's consensus:https://t.co/07tzyCrZcJ
— vitalik.eth (@VitalikButerin) May 21, 2023

The Ethereum network could face high systemic risks in the following cases, according to Buterin:

Proposals where users vote by sending Ethereum, with those opting for the majority answer getting a proportional share of all the ETH sent to vote for the minority answer.
Re-staking Ethereum stake and using it to “vote” instead of in-protocol incentives.
Layer-1 driven recovery of layer-2 projects, in the event that L2 has a bug and L1 forks are used to recover it.

Buterin acknowledges that even as most proposals to utilize the Ethereum consensus layer or staked Ether are made in a well-intentioned way, they pose risks to the underlying blockchain and should be discouraged.

Buterin’s concern is that any expansion of the duties of the Ethereum consensus layer increases the costs, complexities, and risks of running a validator. Exposing layer-1 by stretching the duties of the consensus layer to risks could grind the blockchain to a halt.

How does this influence Ethereum

The Ethereum co-founder’s objective is to sustain the resilience and stability of the ETH blockchain. In the event of situations like re-staking and soft forks, the Ethereum consensus layer is at risk of an unexpected fork, or a community split among validators.

Ethereum is the native token of a neutral technical problem, a fork or split could negatively influence the asset’s utility, adoption and price in the long term.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram