Vitalik Buterin, one of the most influential figures in the cryptocurrency space, has admitted that he does not stake all of his Ether only a small portion of eth is staked because he finds multi-signature wallets to be too complicated.
In a recent podcast with Bankless, Vitalik Buterin revealed that he only keeps a small portion of his ETH.
Charles Hoskinson, the co-founder of Ethereum and Cardano, recently expressed surprise at Vitalik Buterin’s choice to stake so little of his Ether on Twitter. Hoskinson also revealed that he has “all” of his ADA staked.
Hoskinson’s comments have sparked a debate about the merits of staking Ethereum and Cardano. Several individuals have claimed that Buterin’s choice reflects his lack of faith in Ethereum, while others have praised Buterin’s choice and said that he is only exercising caution.
Buterin explained that multi-signature wallets require the keys to be made publicly available on an open network, which he finds to be a security risk. He recently said that creating multi-signature wallets is still “fairly difficult” and “gets complicated in a bunch of ways.”
Buterin believes that the EigenLayer protocol has the potential to revolutionize the staking landscape by allowing users to “reallocate” their assets to other networks.
Vitalik has said that the EigenLayer protocol creates “centralization risks” because trustworthy stakers would be valued more by the system than untrustworthy stakers.
Buterin believes that the EigenLayer protocol could lead to a situation where a small number of trusted stakers control a large share of the network’s resources.
Sreeram Kaanan, the founder of EigenLayer, has warned that there are “complex risks” associated with restaking, and that it is important to take a “constrained approach” when building restaking protocols.
Buterin’s comments highlight the importance of scaling infrastructure for the Ethereum blockchain, and they also raise concerns about the security of smart contract wallets.