The Ethereum network has made big changes in recent years. One of the most important was “The Merge,” where Ethereum moved from Proof of Work to Proof of Stake. This shift aimed to make the network more secure and energy-efficient. Now, Ethereum runs on Proof of Stake, and it has been working well for almost two years. But there are still some areas that need improvement.
One issue is that it takes about 15 minutes for a block to be finalized. Finalizing a block means making sure it’s part of the permanent record on the blockchain. Another concern is that you need 32 ETH to become a validator, which is a lot of money for most people. Validators are the ones who help secure the network by approving new blocks.
Ethereum wants to make staking more accessible. Reducing the minimum staking requirement from 32 ETH to 1 ETH would allow more people to participate. This is part of staking democratization. More validators mean more decentralization, which is good for the network’s security.
However, there is a challenge. If you have more validators and want faster finality, the network has to handle more data. Each validator needs to send and receive messages quickly. This can increase the overhead and make it harder for nodes to operate efficiently.
One idea to solve this is Single Slot Finality, or SSF. With SSF, blocks can be finalized in one slot, which could be as short as 12 seconds. This is much faster than the current 15 minutes. Faster transaction confirmations would improve the user experience. People wouldn’t have to wait long to know their transactions are final.
But implementing SSF isn’t easy. One option is to use brute-force methods to handle all the validators’ signatures quickly. This could involve advanced cryptography like zero-knowledge proofs. Another option is to use Orbit committees. In this system, a random group of validators, called a committee, is responsible for finalizing blocks. This helps reduce the overhead because only a smaller group needs to communicate.
Orbit SSF aims to keep the cost of attacking the network high. Economic finality means that if someone tries to attack the network, they would lose a lot of ETH. Orbit committees preserve this by making sure that even though fewer validators are involved in each block, the overall security remains strong.
Another idea is two-tiered staking. Here, there are two types of validators: those who stake a lot of ETH and those who stake less. The higher-tier validators would handle more responsibilities, like finalizing blocks. The lower-tier validators could participate in other ways, like creating inclusion lists or delegating their stake.
Single Secret Leader Election, or SSLE, is another area of focus. Right now, everyone knows which validator will propose the next block. This can make it easy for attackers to target that validator with a Denial-of-Service attack. SSLE hides the identity of the next proposer until they actually create the block. This helps prevent DoS attacks on validators.
Implementing SSLE involves complex cryptography. The challenge is to find a method that is secure but also practical to implement. Some proposals use techniques like ring signatures or mixnets to keep the proposer’s identity secret.
Ethereum is also looking at ways to make transaction confirmations faster. Reducing the time it takes for a transaction to be included in a block improves the network’s usability. One approach is proposer preconfirmation. This allows the proposer to signal that they will include certain transactions in their upcoming block. Users get quicker feedback, enhancing their experience.
However, reducing slot times to, say, 4 seconds presents its own challenges. Network latency becomes a bigger issue. Validators need to communicate quickly, which might be hard for those in regions with slower internet connections. This could centralize the network, which Ethereum wants to avoid.
Another important topic is preparing for potential 51% attacks. In such an attack, someone controlling more than half of the network’s stake could try to reverse transactions or censor others. Ethereum wants to have strategies in place for 51% attack recovery. One idea is to increase the quorum threshold. Right now, 67% of validators need to agree to finalize a block. Raising this threshold could make attacks harder but might also slow down the network.
Quantum computing is another concern. Experts predict that quantum computers could break current cryptographic methods in the future. Ethereum is exploring quantum-resistant cryptography to stay secure in the long term. This involves finding new algorithms that quantum computers can’t easily break.
Solo stakers play a crucial role in Ethereum’s security. They help keep the network decentralized. Encouraging more people to become solo stakers strengthens the network. By lowering the minimum staking amount, more individuals can participate without joining large pools.
Attester-Proposer Separation designs are also being considered. This means separating the roles of proposing blocks and attesting to them. It can help improve security and make the network more resilient.
Overall, Ethereum is working on many fronts to improve its Proof of Stake system. They aim to make staking more accessible, transactions faster, and the network more secure. While there are challenges, these efforts are important for Ethereum’s future.
In summary, Ethereum’s move to Proof of Stake was a big step forward. But there’s still work to do. By focusing on staking democratization, Single Slot Finality, and other innovations, Ethereum aims to build a better and more secure network for everyone.
