Vitalik Buterin, co-founder of Ethereum, recently addressed the ongoing debate over the decentralization of Ethereum compared to Bitcoin. During his presentation at the ETHCC in Brussels, Buterin argued that Ethereum’s decentralization is superior to that of Bitcoin. This assertion comes despite recent criticisms surrounding the cost of staking ETH. Buterin’s detailed analysis highlights Ethereum’s robust decentralized structure, contrasting it with Bitcoin’s more centralized elements.
Buterin’s critique centers on the centralized nature of Bitcoin’s mining pools. Currently, two mining pools are responsible for half of Bitcoin’s computing power, while four pools control 75%. In contrast, Ethereum’s validator system exhibits a more distributed approach.
A significant portion of Ethereum’s validators are unidentified, indicating a diverse group of individual and independent stakers. Additionally, the Lido staking platform, which includes 37 different validators, contributes to Ethereum’s decentralization.
Ethereum’s transition to a proof-of-stake (PoS) consensus model, known as the Merge, was a major shift from its previous proof-of-work (PoW) system. This change aimed to reduce energy consumption by replacing miners with stakers.
While this shift was intended to improve network efficiency, it has faced criticism for potentially increasing centralization due to the 32 ETH staking requirement. Buterin acknowledged this concern, explaining that reducing the minimum staking threshold could lead to a higher number of validators.
Currently, Ethereum boasts approximately 1 million validators. If the staking minimum were reduced to 4 ETH, the number of validators could surge to about 8 million, although this would involve trade-offs.
Nevertheless, Buterin believes Ethereum has managed to strike a balance between decentralization and operational efficiency. He pointed out that Ethereum’s ecosystem benefits from a multi-client setup, which includes both Geth and non-Geth execution clients. This diversity in execution clients, along with a variety of consensus clients, reinforces the network’s decentralized nature.
Vitalik Buterin Criticizes Blockchain Investment Focus on SpeculationFurthermore, Buterin described blockchains as “truth machines,” emphasizing their role in providing consistent and immutable information. This perspective underscores the importance of maintaining a decentralized infrastructure to uphold the integrity of the data processed by the network.
As at press time, Ethereum’s price stands at $3,487.58, with a 24-hour trading volume of $14,706,296,536. The cryptocurrency has seen a 1.70% increase in the last 24 hours.
