Ethereum co-founder believes over $40 billion worth of ETH may have been stolen

It appears that Vitalik Buterin, co-founder of Ethereum, does not trust the security of the infrastructure that allows ETH staking. As a result, in a recent interview, Buterin said that he will only stake a limited amount of coins to ensure that the network is distributed and will remain robust against malicious agents who might try to take over the platform by reversing transactions. Are.

Vitalik Buterin suspected of Ethereum staking

Buterin has raised concerns about the potential risks of staking ETH through third-party infrastructure, specifically the risk of private keys being exposed to his entire holdings. They believe that better security can be provided by implementing a multi-signature system. However, the current process is more difficult to set up, which has increased his caution.

In a multi-sig system, users have their own private keys to sign transactions. A specific number of signatures must be provided for a transaction to be approved, which varies depending on the configuration of the Ethereum wallet. This setup enhances security and reduces the risk of unauthorized access to funds.

during bankless podcastCo-founder explains:

Probably the biggest reason why I’m personally not only staking all my ETH, but instead I’m staking a fairly small portion, is because if you stake your ETH, it’s not going to be worth it at all. Will have to be out of sorts, as will the keys to access it. To be public on a system that is online, and for security, it has to be multi-sig, and setting up multi-sig for staking is still quite difficult, and it gets complicated in a number of ways.

ETH price stable below $2,000

His comment has created a lot of discussion. Most critics are concerned about the overall security architecture of Ethereum. Having moved from a proof-of-work to a proof-of-stake system, Ethereum relies on a network of validators, who are required to approve blocks of transactions and have the opportunity to earn block rewards and transaction fees. 32 ETH has to be staked. These validators are also needed to secure the network; Without them, the blockchain would be vulnerable to attacks.

according to on-chain statisticsThere are over 643,000 validators spread across the globe who have staked over 20.5 million ETH. On average, each validator has 32.17 ETH at stake. Notably, validator numbers have grown steadily over the past few years, and the number of ETH staked has grown exponentially despite a recent upgrade allowing stakers to unlock their coins.

Charles Hoskinson, founder of Cardano and one of the original co-founders of Ethereum, Said He was “at a loss for words”, clarifying that all of his ADA is staked as expected in a “properly designed proof-of-stake system”.

At the time of writing, ETH price remained stable and was not affected by Buterin’s comments. However, the coin has still not crossed $2,000 and is trading below its April 2023 high in early July 2023.

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