Ethereum is seeing a rise in price after the co-founder shared a proposal in order to simplify the PoS mechanism. Check out the latest reports about this below.
ETH explodes following Vitalik Buterin’s move
Ethereum (ETH) co-founder, Vitalik Buterin, has released a proposal to improve the blockchain of the top altcoin.
He believes his proposal would make the proof-of-stake system “considerably simpler and lighter,” which would increase decentralization and allow regular individuals to participate in staking.
However, Buterin acknowledges that implementing his proposal would come at a high cost.
“This approach requires the Ethereum chain to process a huge number of signatures (~28,000 today; 1,790,000 post-SSF [single slot finality]) per slot, which is a very high load. Supporting this load entails a lot of technical sacrifices.”
In a recent statement, Ethereum’s founder Vitalik Buterin expressed concern over the network’s centralization.
He stated that if Ethereum were to suffer a security breach, it would cost the network approximately 9 million tokens, which translates to a staggering $20 billion.
Buterin further explained that if a 51% attack occurs on Ethereum, a significant number of validators would have their deposits slashed, and the cost of the attack would be around 9 million ETH.
He suggested that this high cost could be reduced by making some adjustments to validator accountability while still keeping the amount of slashable ETH reasonably high.
This approach would offer most of the benefits of a smaller validator set.
Buterin concludes that the optimal number of signatures to process per slot for ETH is 8192 as it would make it “much easier for anyone to run a consensus client, and users, staking enthusiasts and others would be able to immediately work off of that assumption.”
Following the announcement, the price of Ethereum surged to $2,442 but has since stabilized and is currently trading at $2,370, marking a slight increase over the past 24 hours.