Vitalik Buterin Doesn't Like Re-staking. Here’s why

Re-staking has been one of the recent developments in Ethereum, taking center stage. And the core idea behind this trend is: When you can rent a security system, why create your own?

Re-staking is a process where ETH tokens that are “staked” on Ethereum can be reused for smaller applications and networks. In this article, we’ll discover why Vitalik thinks this.

What is re-staking?

Despite the popularity of re-staking, Ethereum’s co-founder, Vitalik Buterin, is far from a big fan. The popular developer cited the risk of “centralization” as one of the drawbacks of re-staking. In addition, Buterin said he was concerned that re-staking might bring about risks that would jeopardize the network’s security.

Furthermore, he noted that trends such as re-staking can overcomplicate the Ethereum consensus mechanism beyond its main design. Buterin expressed concerns in a blog post about projects that could excessively increase risks in the Ethereum ecosystem. And complicate the roles of Ethereum validators outside their fundamental responsibility of validating the standards of the fundamental protocol.

Buterin on the Risks Involved With Re-Staking

Furthermore, Buterin believes that re-staking can serve low-risk purposes. However, some circumstances can affect the main net’s security. This includes slashing validators for third-party claims. Slashing refers to the punishment given to validators who engage in illegal acts, such as processing transactions irregularly.

Buterin urged his followers to be “wary of application-layer projects taking actions that risk increasing the “scope” of blockchain consensus to anything other than verifying the core Ethereum protocol rules.”

He noted that such ideas are often approached without considering the possible risks. And they can become misaligned with the core community goal. Buterin added that such a process has no limiting principle. And that a blockchain community could easily become burdened with an increasing number of “mandates” over time if such a process were to take place.

This would force the community to make a difficult choice between a high yearly risk of splitting and some sort of de facto formalized bureaucracy that controls the chain in its entirety.

Buterin suggested that “we should instead preserve the chain’s minimalism and support uses of re-staking that do not seem like slippery slopes towards extending the role of Ethereum consensus.”

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