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Vitalik Buterin proposed “Rainbow Staking”

Bits.media / 21.03.2024 / 18:41
Vitalik Buterin proposed “Rainbow Staking”
Speaking at the ETH Taipei 2024 conference in Taiwan, Ethereum co-founder Vitalik Buterin proposed a solution called Rainbow Staking. The meaning of the name can be boiled down to the phrase: “Let all colors bloom.”

The main problem for the Proof-of-Stake transaction confirmation mechanism was the centralization of the network, stated the co-founder of Ethereum. Major services, Lido, Coinbase and Binance have gained an inordinate share of the staking market. The total locked value (TVL) of the Lido Finance liquid staking protocol is $34.3 billion, making the project the largest ETH validator, controlling over 30% of the assets. 

To make liquid staking more decentralized, Ethereum plans to encourage all categories of service providers to participate by introducing classes of “heavy” and “light” services with, respectively, different levels of responsibility and income.

According to Vitalik Buterin, the solution should help integrate services in a more convenient format. The Ethereum co-founder assured that Rainbow Staking will help solve the problem of “moving to single-slot finality.” Blocks will be able to be proposed and completed in the same slot, and the speed of the block confirmation process on the network will increase.

As for the risks associated with possible hacking of the blockchain by quantum computers in the future, to protect the network from such unauthorized access, a “restorative hard fork” will be required, and the ETH blockchain is fully prepared for such an upgrade, the speaker assured.

Earlier, Vitalik Buterin announced that with the help of artificial intelligence (AI) it is possible to identify and eliminate errors hidden in the network code. However, not all participants in the crypto industry supported his initiative.

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