- Vitalik Buterin, the founder of Ethereum, revealed that he has only staked a small portion of his ETH due to the technical complexity of the process.
- The use of the multisig method for staking ETH is considered a secure way, but it can also create significant technical complexities.
- Cardano founder Charles Hoskinson responded to Buterin’s statement, expressing surprise that Buterin has only staked a small amount of Ether and emphasizing the importance of addressing technical challenges for Ethereum’s success.
Vitalik Buterin’s Approach to Staking ETH
In a recent podcast interview with Bankless, Vitalik Buterin, the founder of Ethereum, discussed his approach to staking his ETH. He revealed that he has only staked a small portion of his Ethereum due to the technical complexity associated with the process. Buterin specifically mentioned the use of the multisig method as a hurdle for staking Ethereum.
The Multisig Method and its Challenges
The multisig method is considered one of the secure ways to stake ETH. However, it can introduce serious technical complexities, making it challenging to implement. Buterin emphasized the complexity of setting up a multisig for staking and the need for it to ensure security.
“Because if you stake your ETH, the keys that access it need to be publicly available on an online sub-system. It needs to be a multisig for security. Setting up multisig for staking is still quite difficult. It becomes complex in many ways,” Buterin explained.
Charles Hoskinson’s Response
Charles Hoskinson, the founder of Cardano, responded to Buterin’s statement, expressing surprise at the small amount of Ether that Buterin has staked. Hoskinson revealed that he has staked all of his ADA and believes that this is the approach that should be taken.
Hoskinson has been vocal about similar challenges and believes that addressing these technical difficulties is crucial for Ethereum to have a successful and sustainable future.
Buterin also mentioned the EigenLayer protocol, which is planned to be implemented in the third quarter of 2023, allowing for re-staking. However, Buterin highlighted the potential centralization risks that this system could bring to the Ethereum blockchain.
“Trustworthy stakers will receive more value from the system than untrustworthy stakers. The likelihood of trustworthy stakers being truly disabled is much lower. This could result in a network structure with dominance by certain users,” Buterin explained.
