Vitalik Buterin Proposes 3 Ways to Simplify Proof-of-Stake Design for Ethereum

In a recent post on the Ethereum research forum dated December 27th, Vitalik Buterin, one of the co-founders of Ethereum, has outlined three potential solutions to tackle the issue of what he considers a potential systemic complexity within the Ethereum network's Proof-of-Stake (PoS) consensus mechanism.

The primary issue at hand is that validators, responsible for maintaining the network's operations, must create numerous digital signatures using cryptography for the network to function correctly. This becomes a considerable task for the network, and as more validators join, the number of signatures increases, leading to congestion. Subsequent updates are aimed at increasing signature requirements further.

1. Decentralized Staking Pools:

The first solution revolves around decentralized staking pools. It involves a significant increase in the minimum amount of Ether required to launch a validator, compelling those initiating validators to collaborate and pool their resources.

2. Two-Tiered Stakers:

The second approach suggests creating two tiers of stakers – one with higher requirements and another with simpler requirements. These two tiers would be treated differently during the block finalization process.

3. Rotational Participant Sets:

The third method entails using a rotational participant set, where a random set of validators is selected for each slot. This would distribute the workload and reduce the overall number of signatures but, as noted by Buterin, would add complexity to the system.

Vitalik Buterin's proposals aim to make the Ethereum network's PoS mechanism more efficient and less complex, potentially addressing the scalability challenges posed by the current design. The Ethereum community will likely closely examine these suggestions as they seek to enhance the network's performance and sustainability.