Just as everything was going well in ETH land, Vitalik Buterin drops a bomb. Get this, he is only staking a “small portion” of his ETH. Eeek! Of course, Charles Hoskinson made it known he has all his ADA staked. But it’s not that Vitalik doesn’t want to. The real reason behind the confession is this: staked ETH is at risk of being stolen.
This is what Vitalik had to say:
“If you stake your ETH, the keys that access it have to be public on a subsystem that is online. For safety, it has to be a Multisig. Multisig for staking is still fairly difficult to set up, it gets complicated in a bunch of ways.”
Buterin’s made a blunder here. Is ETH not safe? If staking safely requires multi-signature, which remains a tricky process on the network, then it does imply that Ethereum staking isn’t safe. And security on the Ethereum network isn’t where it should be. This is why the Ethereum team is hard at work on The Three Transitions. Remember the blockchain trilemma: Scalability, Decentralization, and Security. Ethereum has made it clear it needs to solve all 3 to survive.
