Surprising as it may seem, Ethereum co-founder Vitalik Buterin only stakes a tiny fraction of his ETHs. Does this mean that Vitalik Buterin has no real confidence in the Ethereum blockchain? Part of the crypto community, including Charles Hoskinson, seems to share this view.
Is Vitalik Buterin afraid of ETH staking?
On June 29, during a podcast published on the YouTube channel of the media company Bankless, the co-founder of the Ethereum blockchain Vitalik Buterin revealed that not all of his ETH was staked..
While staking is very popular among cryptocurrency investors to generate passive income, but also to participate in the decentralization of the network, Vitalik Buterin genuinely surprised his audience by claiming that only a tiny fraction of his ETH was staked.
Here is how he justified this astonishing decision:
« The main reason I don’t stake all of my ETH, but rather a small portion, is that if you stake your ETH, you need the keys to access them to be public on an online system, and for security, it needs to be a multi-sig, and multi-sigs for staking are still quite difficult to set up, and it turns out to be complex in many ways. »
This revelation follows a blog post published by Vitalik Buterin on June 9, in which he presented 3 necessary transitions for blockchain without which it will fail.
In particular, he pointed out that the Ethereum blockchain was dysfunctional in the absence of an adequate layer 2 to facilitate affordable transactions. In addition, he had also mentioned the difficulties users encountered when they had to manage several addresses simultaneously.
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The astonishment of the community was not long in coming.
Following the broadcast of this podcast, the crypto community was particularly surprised to learn that Vitalik Buterin had not placed all his ETH in staking.
Some individuals wondered how the community could be comfortable with the idea of staking its own ETH when even one of the blockchain’s co-founders isn’t doing so. For others, this would prove that Vitalik Buterin doesn’t trust his own product.
Alerted on Twitter, Charles Hoskinson, co-founder of Ethereum and founder of the Cardano blockchain, has also publicly spoken out on the matter ;
« I had to listen to it several times. Words fail me. All our ADAs are placed in staking [certainement ceux des entités dirigeantes de Cardano, N.D.L.R]. You know, that’s how it should be for a properly designed Proof of Stake protocol. »
What do you think of Vitalik Buterin’s comments? Does it undermine your confidence in the Ethereum blockchain?
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Source: Bankless
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Editor-in-chief of Cryptoast, I discovered Bitcoin and blockchain technology in 2017. Since then, I’ve been striving to share qualitative content so that the sector can be democratized for everyone.
Clément Wardzala
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