As Ethereum prepares for its Pectra upgrade in early 2025, a recent research report published by Liquid Collective and Obol revealed several associated risks.
The report emphasizes the importance of diversity among clients, practitioners and and cloud system along with concerns about limited adoption of distributed validator technology (DVT).
Matt Leisinger, Chief Product Officer of Alluvial, the software development company supporting Liquid Collective, said:
“Our latest report with Obol highlights the increasing importance of addressing the relative risks of staking Ethereum and protocol-level penalties.”
Related risks
As for consensus and execution clients, the report warns that “Critical errors in clients” could lead to “severe penalties and network instability.”
As a fundamental component of Ethereum’s consensus mechanism, staking through a single node operator can cause the staked asset to stop working.
The report warns that “Provider diversity is critical to maintaining network health and avoiding single points of failure.”
“Every stakeholder and service provider must rigorously evaluate relationships, diversity, and risk mitigation. To prevent risks that may occur Even from trusted node providers.”
The report also discusses the need to widely distribute validators and cloud providers, citing “recent outages such as at Hetzner and AWS.”
It explains that DVT can greatly support this strategy by increasing “the flexibility of “validator by reducing relative risk”
“For long-term flexibility and institutional acceptance It is critical that staking configurations prioritize node operators and validator diversity.”
Upcoming Ethereum Spectra Upgrade It will include upgrades to Prague and Electra, focusing on changes to the execution and consensus layers.
Petra is expected to go live in the first quarter of 2025 and will include Ethereum Improvement Proposal (EIP)-7251.
refer : cointelegraph.com
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