Ethereum’s Vitalik Buterin Highlights Decentralization Differences with Bitcoin
- While discussing the mainnet and layer 2 solutions, Buterin also touched on other topics.
- In comparison to Bitcoin, he said, Ethereum is more resilient and decentralized.
Vitalik Buterin, co-founder of Ethereum, has distinguished Ethereum’s decentralization to that of Bitcoin and other networks in great detail. As experts see models moving away from the heart of blockchains, the centralization of mining and staking has remained a controversial topic. While discussing the mainnet and layer 2 solutions, Buterin also touched on other topics.
In comparison to Bitcoin, he said, Ethereum is more resilient and decentralized. Vitalik Buterin made the observation during the ETHCC in Brussels that four mining pools provide 75% of Bitcoin’s computational power, while two pools contribute 50%. He made a point of mentioning that a significant chunk of Ethereum is unidentified, implying that they are run by a group of people or independent stakers.
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He went on to say that the system is essentially decentralized since The Lido part has 37 separate validators. Advantages such as a multi-center knowledge ecosystem, diverse consumers across countries, and a multi-client ecosystem are often attracted by this.
Following the much-anticipated Merge, Ethereum switched to a proof-of-stake consensus mechanism. To cut down on power consumption, it effectively switched out miners for stakers. Critics ridiculed the centralization allegations due to the 32 ETH benchmark. Even though this strategy was supposed to help the network.
The 32 ETH staking requirement was pointed out by Vitalik Buterin as an impediment. And he explained the tradeoff for a lower fee. With an increase in the trade-off, the network’s minimum threshold might be lowered to 4 ETH, which would result in 8 million validators instead of the 1 million validators now on the network.
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