Report Highlights Ethereum’s Potentially Dangerous Back-end
The post Report Highlights Ethereum’s Potentially Dangerous Back-end appeared on BitcoinEthereumNews.com. A research report published by the Liquid Collective and Obol has identified several risks tied to Ethereum’s interconnected infrastructure systems. The Liquid Collective and Obol report says these correlation risks may impact the effectiveness of a major upcoming upgrade called Pecta, which is set to be implemented in 2025. The report says that for Ethereum to remain stable — cloud, operator, and client diversity needs to be improved. The report, “Ethereum’s Correlation Risks: Poorly Understood, but Always Present”, explores risks like Ethereum’s slashed correlation penalties. Ethereum, like other Proof-of-Stake networks, disincentivizes bad validator behavior through slashing. If a validator messes with the network by, for example, double-signing a transaction, they lose their stake. What makes Ethereum different is its correlated slashing model, where if more validators are slashed at the same time, each validator loses more stake than if they had been slashed separately. This model becomes ineffective and dangerous if a single operator in the network controls several nodes. The report states that multiple nodes deployed by the same operator are likely to have similar staking practices. The report says there are several non-malicious reasons for nodes to be slashed including – Geographical cloud outages, bugs in client software, or unintentionally long downtimes. If an operator was to get large enough, an accidental slashing event could implode the network. The report says this risk is further compounded by issues such as; The popular client Geth is used by 84% of the network. If it were to crash or have a bug, the consequences would be severe. Diverse client usage would mitigate this risk. Potential for regional AWS outages or policies affecting large chunks of the validator set. A greater geographical distribution of servers and operators using more cloud providers would mitigate this risk. As the image from the report…
The post Report Highlights Ethereum’s Potentially Dangerous Back-end appeared on BitcoinEthereumNews.com.
A research report published by the Liquid Collective and Obol has identified several risks tied to Ethereum’s interconnected infrastructure systems. The Liquid Collective and Obol report says these correlation risks may impact the effectiveness of a major upcoming upgrade called Pecta, which is set to be implemented in 2025. The report says that for Ethereum to remain stable — cloud, operator, and client diversity needs to be improved. The report, “Ethereum’s Correlation Risks: Poorly Understood, but Always Present”, explores risks like Ethereum’s slashed correlation penalties. Ethereum, like other Proof-of-Stake networks, disincentivizes bad validator behavior through slashing. If a validator messes with the network by, for example, double-signing a transaction, they lose their stake. What makes Ethereum different is its correlated slashing model, where if more validators are slashed at the same time, each validator loses more stake than if they had been slashed separately. This model becomes ineffective and dangerous if a single operator in the network controls several nodes. The report states that multiple nodes deployed by the same operator are likely to have similar staking practices. The report says there are several non-malicious reasons for nodes to be slashed including – Geographical cloud outages, bugs in client software, or unintentionally long downtimes. If an operator was to get large enough, an accidental slashing event could implode the network. The report says this risk is further compounded by issues such as; The popular client Geth is used by 84% of the network. If it were to crash or have a bug, the consequences would be severe. Diverse client usage would mitigate this risk. Potential for regional AWS outages or policies affecting large chunks of the validator set. A greater geographical distribution of servers and operators using more cloud providers would mitigate this risk. As the image from the report…
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