Vitalik Buterin proposed a new strategy for Ethereum PoS to adapt to Shanghai's upgraded verification methodology

In a detailed blog post, Ethereum founder Vitalik Buterin outlines the significant shift in Ethereum’s approach to PoS (PoS) verification after the Shanghai upgrade.

Currently, Ethereum supports numerous validators, with approximately 895,000 validator objects, enabling a broad base of individual and entity participation. This is a key feature of Ethereum’s decentralized structure.

However, this model presents technical challenges, especially the problem of dealing with a large number of signatures. About 28,000 signatures are currently required to validate a block; this number is expected to reach 1.79 million after SSP (Sharding and Stake Finality).

The technical sacrifices to support such a load are considerable, including complex proof propagation mechanisms, the need for super-optimized BLS signature operations, the lack of viable quantum-resistant alternatives, and increased slot times due to more subslots.

Buterin also highlighted the system-level complexity of the current model and its potential ineffectiveness in actually enabling validation of stake, as the minimum staking requirement of 32 ETH is financially confined for many.

8,192 Signatures

In response, Buterin proposed a shift that reduced the number of signatures per slot to a manageable 8,192. He argues that this change will open up the PoS design space, allow for technical simplification, improve security, and solve the problem of quantum resistance.

Buterin criticized the committee-based security approach used by other blockchains, highlighting the lack of accountability for attacks and the lack of enough to stop them. Instead, Ethereum has imposed severe penalties on attackers. However, Buterin believes that even if the cost of the attack is dropped (1-2 million ETH), it is sufficient, advocating a balanced solution that keeps the penalties high but provides more benefits than a smaller set of validators.

The blog post explores three ways to implement 8,192 signatures per slot under SSF:

• Decentralization Stake Pools: Focus on Decentralization Stake Pools, potentially raising minimum deposits and setting penalty caps to reduce trust in Node Operators.

• Two-tier stake: Establish a primary stake tier for participating in finalization, and a “light” stake tier for additional security, with no minimum staking requirements.

• Rotational Participation (Accountability Council): A hybrid approach where validators participate according to their stake, ensuring security with a finely tuned set of validators.

Buterin’s conclusion emphasizes that sticking to 8,192 signatures will greatly simplify the technical implementation and make Ethereum more accessible. The focus will then shift to choosing the most appropriate method from the options proposed.

Ensuring security through simplification

In the comments, some users raised concerns about designing systems that are resistant to state-level attacks, arguing that even if the security budget is reduced, it may still be insufficient. Buterin responded by emphasizing the importance of simplicity in protocol design as a means of defense against various attack vectors, advocating “security through simplicity.”

This proposed shift marks a pivotal moment in Ethereum’s evolution, highlighting the constant balance between security, decentralization, and usability.