Vitalik Buterin is cooking up a new way to decentralize Ethereum staking

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Vitalik Buterin floated techniques to penalize correlated failures among Ethereum validators to improve the blockchain’s decentralization.

Ethereum co-founder Vitalik Buterin has proposed a technique to incentivize better decentralization of Ethereum by penalizing correlated failures among validators.

“The theory is that if you are a single large actor, any mistakes that you make would be more likely to be replicated across all ‘identities’ that you control,” he said.Buterin observed that validators within the same cluster, such as a staking pool, are more likely to experience correlated failures — likely due to shared infrastructure.

Simulations suggest this approach could reduce the advantage of large Ethereum stakers over smaller ones, as large entities are more likely to cause spikes in the failure rate due to correlated failures.

 

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