Buterin's Thoughts on Centralized Staking : The Four Scaling Challenges of L2

2023-10-24 06:56:10

By Abdulkarim Abdulwahab, Coin Edition; Compiled: Pine Snow, Golden Finance

Vitalik Buterin discusses centralized staking and scaling challenges in Ethereum.
He highlighted four key scaling challenges in the Layer 2 solution, including ZK attestation and data availability.
Buterin emphasizes maintaining a strong base layer while expanding Ethereum’s scalability.

Vitalik Buterin, the prominent co-founder of Ethereum, the second-largest cryptocurrency project, presented a critical discussion around the challenges of the Ethereum proof-of-stake network. These include centralized staking and transaction processing efficiency and Layer 2 scaling issues.

Buterin mentioned the initiative in his ongoing Ethereum Hong Kong Hackathon presentation.

Based on the shared screenshots, Buterin highlighted four scaling challenges for Layer 2, including proving system security and decentralization, ordering decentralization, across L2 wallets, and data availability space.

Notably, zero-knowledge (ZK) and proof of fraud are examples of proof systems used in Layer 2 scaling solutions to prove the validity of transactions without having to process them on the Ethereum main chain. There is an argument that some ZK proofs become centralized due to their dependence on specific hardware.

“Sequencing”, on the other hand, refers to ordering transactions before they are included in a block. In Ethereum Layer 1, miners are responsible for sorting. However, in some Layer 2, some potentially centralized entities run sequencers. In addition, cross-second-layer wallets allow users to interact with multiple second-layer solutions without switching wallets.

As for the data availability space, it refers to the challenge of storing a complete copy of blockchain data to verify transactions. Vitalik Buterin highlighted these four issues as some of the most critical challenges that must be addressed to achieve Ethereum scalability.

In his concluding remarks, the ETH co-founders recommend maintaining three balances. One of Buterin’s arguments is that “it is critical to maintain the robustness of the base layer while carefully expanding some aspects of its functionality.” ”

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