Ethereum's Proof-of-Stake Improvements

The Ethereum protocol transitioned from a proof-of-work to a proof-of-stake consensus mechanism nearly two years ago. However, its co-creator, Vitalik Buterin, believes there is still room for improvement.

Performance Overview

Buterin acknowledges that Ethereum’s proof-of-stake implementation has "performed remarkably well" regarding stability, performance, and avoidance of centralization risks. Yet, he identified areas for technical enhancements in a post on his personal website.

Block Finalization and Staking

One issue highlighted by Buterin is the 15-minute block finalization time and the 32 ether requirement to become a staker. Ideally, he proposes finalizing blocks in one slot, reducing the wait from 15 minutes to just 12 seconds, and allowing validators to stake with only one ether. This would simplify the protocol and support solo stakers; however, achieving this conflicts with Ethereum’s goal of minimizing overhead. Buterin suggests resolving these challenges via brute-force technical advancements, orbit committees, two-tiered staking, or a combination of these methods.

Single Secret Leader Elections

Another concern Buterin addresses is the predictability of the next block proposer, which creates a security vulnerability. He suggests that hiding the identity of the upcoming block proposer until the moment of block production can mitigate this risk. Implementing a “single secret leader election” requires a simple and safe protocol.

Reducing Confirmation Times and Addressing Future Threats

Buterin advocates for reducing transaction confirmation times to approximately four seconds, which would enhance user experience and improve efficiency for DeFi protocols. He emphasizes the need for research on defending against potential 51% attacks and increasing the quorum threshold. Furthermore, he raises concern about quantum resistance, predicting it may become significant around 2030. This factor may impact the entire Ethereum roadmap, suggesting a cautious approach to the performance of proof-of-stake designs and the need for proactive development of quantum-resistant solutions.