Ethereum co-founder Vitalik Buterin published the third part of his article on possible futures of the Ethereum protocol. In this new material, he discusses the risks of centralization and proposes solutions called The Scourge.

The Scourge: Solution to Centralization

Vitalik Buterin emphasized that economic pressure can lead to centralization in the core proof-of-stake mechanism. This situation could result in the dominance of large stakers, sidelining smaller participants and increasing the risk of attacks and transaction censorship. To mitigate these risks, the network is implementing The Scourge, aimed at reducing centralization risks and excessive value extraction from users.

Impact of Increased Ethereum Staking

Buterin noted that approximately 30% of the ETH supply is actively staking. Although this amount is sufficient to protect against attacks, increased participation could pose new risks. There are concerns that staking might become an obligation for all ETH holders, with a single liquid staking token potentially capturing a large portion of the stake, creating additional risks.

Ethereum and Solana's Rivalry

Amidst Buterin's preparations and the launch of The Scourge, the rivalry between Ethereum and Solana continues. These blockchains are compared in terms of speed, scalability, and innovation. Solana is known for its high performance, while Ethereum remains the leader in smart contracts, thanks to improvements implemented after The Merge.

In light of the discussed risks and solutions, Buterin continues to explore strategies to strengthen Ethereum's position in the smart contract market, addressing challenges from competing platforms.