Ethereum (ETH) pumps 10%, as Vitalik proposed new ETH PoS design

Vitalik Buterin proposed a simpler design for the Ethereum Proof-of-stake (PoS) consensus to fight against the challenges associated with the existing model. 

Ethereum (ETH), the second top-ranked crypto asset by market cap, is currently trading at the trade price of $2,379 & this trade price is 6.8% higher over the last 24 hours trade price.

This sudden pump in the trade price of Ethereum occurred because of a new Ethereum-focused development proposal by the Ethereum Co-founder Vitalik Buterin. 

On 27 Dec 2023, Vitalik took to X (formerly Twitter) to share a new ETH PoS model to reduce validator signatures to make the ETH network simpler and lighter.

A PoS simplification proposal: make a design that only requires 8192 signatures per slot (even with SSF), making the consensus implementation considerably simpler and lighter.https://t.co/Z8mK7vZx7g

— vitalik.eth (@VitalikButerin) December 27, 2023

As we know Ethereum has about 895,000 validators with the aim of decentralisation and public participation in staking, but it still results in processing around 28,000 signatures per slot, causing a high load.

Such heavy loads on the network cause multiple challenges, for example limited quantum resistance and complex scaling solutions using zero-knowledge proofs (SNARKs).

The major problem with the current ETH PoS model is the requirement of 32 ETH at least for a single person to contribute as a validator.

Under the newly proposed model, Vitalik suggested reducing the number of validators to nearly 8,192 per slot. This change in the ETH network signature system would make the Ethereum network more simple and further it would improve quantum resistance, and keep a high amount of ETH at stake for network security.

Just a month ago, Vitalik talked about Ethereum’s staking model and admitted that it was very little decentralised further he proposed the concept of using the Unspent Transaction Output (UTxO) model, the same model used by the Ethereum rival blockchain network Cardano (ADA). 

At the time, for those statements on the new PoS model for Ethereum, Cardano founder Charles Hoskinson criticised Vitalik for not giving credit to Cardano.

Not fueling hostilities but I am truly at a loss that Cardano can never be mentioned as an innovative ecosystem over on team E. V is rediscovering what we've been working on for almost a decade and it's like a new revelation. It's extraordinary that we never get a shout-out

— Charles Hoskinson (@IOHK_Charles) November 24, 2023

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