The Ethereum network realized the 1 million milestone for its validators, implying increased security for the blockchain that Vitalik Buterin co-founded. Though critical to enhancing the network’s security, the milestone has triggered concerns among the community members who perceive the number as too many and vulnerable to challenges. Amidst these developments, the potential integration of an artificial intelligence crypto trading robot could significantly optimize staking strategies and validator performance, enhancing the Ethereum network’s efficiency and security even further.
Validators Hit 1 Million Milestone
The Ethereum network recently hit the one million validator milestone, with 32 million staked ETH accounting for 26% of the token supply. The amount staked approximately $114 billion relative to the current prices.
The Dune analytics developed by Hildobby to monitor the Ethereum staking levels revealed that the network had, on March 28, attained a 1 million validator count. The dashboard illustrated that the staked token accounts for 26% of the total ETH, which is 32 million.
The Dune analytics dashboard revealed that nearly 30% of the Ether is staked on the Lido pool. Lido has emerged as a critical liquid staking protocol for the proof-of-stake (PoS) crypto.
Dune analytics illustrates that the popularity of staking pool Lido arises from allowing users, irrespective of their small ETH amount, to pool assets, thereby guaranteeing their participation.
Is Validators Rising Number Yielding Enhanced Security
The presence of validators is critical to enhance the security of any blockchain. Ideally, the validators monitor the network for potential malicious transactions, including double spending, arising when the same currency is utilized twice.
Validators on Ethereum are critical in authenticating transactions within the entire network. Parties seeking participation in the process should stake 32 ETH and derive a portion as a reward.
The increased number of validators in any blockchain is considered a prerequisite to improving security. However, community members consider flooding validators a challenge evident through incomplete transactions.
A venture investor who doubles as an Ethereum advocate, Evan Ness, termed the 1 million validator milestone too much staking for the network. The view aligns with Gabriele Weide’s argument, who, from experience running a staking pool, considers that too many validators leave the chain vulnerable to failed transactions.
Proposal to Address Rising Validators Number
Coinbase Wallet engineering executive Peter Kim indicated that though the validators’ number is impressive, there is the likelihood of the 32 ETH cap artificially inflating the figure. Nonetheless, he considers that the situation may change soon.
Ethereum co-founder Vitalik Buterin considers that improving the network’s decentralization is necessary amid the rising number of validators. In a Wednesday, March 27 post, the crypto developer revealed proposals to penalize validators relative to the average failure rate.
Vitalik proposes that failure by many validators within a given slot would translate to higher penalties. The approach could likely erode the advantage of the large ETH stakers over the smaller ones.