The Ethereum network has reached a significant milestone with the number of validators exceeding 1 million and approximately 32 million Ether (ETH) valued at approximately $114 billion staked within the network. This staked ETH represents approximately 26% of the total supply and highlights a substantial commitment to Ethereum's Proof of Stake (PoS) consensus mechanism.
TLDR
- The Ethereum network has reached 1 million validators, with 32 million ETH (approximately $114 billion) staked, representing 26% of the total supply.
- Lido, the Ethereum staking pool, accounts for approximately 30% of the staked ETH and allows even small users to participate in the staking process.
- Some community members have expressed concerns about potential problems caused by too many validators, including an increase in failed transactions.
- Vitalik Buterin proposed a mechanism that would penalize validators proportionally to their average failure rate, potentially reducing the advantage of large ETH stakers over smaller ETH stakers.
- The SEC has postponed its decision on Ether ETF applications from major financial institutions, with the final deadline extended to May 2024.
Data from the Dune Analytics dashboard, which tracks Ethereum staking progress, reveals that the number of validators reached the 1 million mark on March 28th. Validators play an important role in maintaining the security of the Ethereum blockchain by monitoring transactions for malicious activity, such as: Double spending.
In Ethereum, validators propose and verify transactions within the network. This requires a stake of 32 ETH. In return for participation, the validator receives compensation in the form of a portion of her ETH.
Among the available staking options, Lido, an Ethereum staking pool, accounts for approximately 30% of staked ETH. Staking pools like Lido allow users with a small amount of his ETH to pool their assets and participate in the staking process, making the staking process accessible to a wider range of users.
Although a higher number of validators generally increases the security of a blockchain, some members of the Ethereum community have expressed concerns about potential problems caused by too many validators.
Venture investor and Ethereum advocate Evan Van Ness has already suggested that the stakes may be “too high.” Staking pool operator Gabriel Weide warned that having too many validators could lead to an increase in “failed transactions.”
Over 1 million Ethereum validators
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— Evan Van Ness ???? (@evan_van_ness) March 27, 2024
To address network decentralization, Ethereum co-founder Vitalik Buterin recently proposed a mechanism to improve the system. In a blog post, Buterin proposed penalizing validators proportional to their average failure rate.
Implementing this approach could result in higher penalties for multiple validator failures within a given slot, reducing the advantage of large ETH stakers over small ETH stakers.
In related news, the U.S. Securities and Exchange Commission (SEC) recently postponed a decision on Ether ETF applications from major financial institutions such as BlackRock and Fidelity.
The final deadline for these decisions has been extended to May 2024. The SEC's decision to extend the deadline follows a December 2023 postponement that sought additional public comment on whether the ETF should be listed. Bloomberg Intelligence ETF analysts James Seifert and Eric Balchunas both expressed adjusted forecasts for pending approvals, predicting approvals could continue into May. ing.
As the Ethereum network continues to evolve and grow, the one million validator milestone signals growing interest and participation in the network's staking mechanism.
