Data from the Dune Analytics dashboard, which tracks the development of Ethereum, showed that the number of validators reached one million on March 28. Validators play a critical role in maintaining the security of the Ethereum blockchain by validating transactions within the network, in exchange receiving a reward in the form of a portion of ETH.
Among the available staking options, Lido, an Ethereum staking pool, accounts for approximately 30% of the ETH staked. Staking pools like Lido allow users with less ETH to pool their assets and participate in the staking process, making it more accessible to a wider range of users.
While more validators generally improve the security of the blockchain, some members of the Ethereum community have expressed concerns about potential problems arising from too many validators. Evan Van Ness, a venture capitalist, suggests that "too much" may already be at stake. Gabriel Weide, a staking pool operator, warns that the abundance of validators could lead to an increase in the number of “failed transactions.”
To solve the problem of network decentralization, Ethereum co-founder Vitaly Buterin recently proposed a mechanism to improve the system. In his blog, Buterin proposed penalizing validators in proportion to their average failure rate.
With this approach, penalties will be higher if multiple validators in the same slot make failed transactions, potentially reducing the advantage of larger ETH stakers over smaller ones.
The US Securities and Exchange Commission (SEC) recently delayed a decision on ETF applications from large financial institutions such as BlackRock and Fidelity. The final dates for these decisions have been delayed until May 2024.
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