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Blockchain technology has many contradictions. For all that it preaches about decentralization, freedom from third party interference and the like, centralization vectors are always present.
This is especially true for the Ethereum blockchain execution client software, which has a faulty code. approximately 70% of the nodes use Geth. If there is a problem with the supermajority of clients, it could result in a chain reorganization. It wouldn’t matter if Execution client A agreed to a reorganized chain if Execution clients B, C and D said it was wrong. However, if a supermajority over 66% confirms this, there is a crisis.
It’s not theoretical. On January 21st, this year, the U.S. bug in Ethereum’s Nethermind client software—used by blockchain validators to interact with the network— knocked out a chunk of the chain’s key operators. Nethermind is responsible for approximately 8% (or a small number) of Ethereum validators. The situation was manageable and the Ethereum blockchain operated normally.
If Geth is afflicted by a bug this could be fatal to the Ethereum blockchain. There are 2 breakpoints for proof-of-stake When two thirds and one third disagree, the blockchain (PoS). If more than a third of validators disagree, Ethereum’s blockchain will slow down and they would be penalized for inactivity. However, this situation is still manageable. If however, over two-thirds sign and vote for a particular block, then it becomes a part of chain, the finalized chain would be invalid. The Ethereum community will be forced to split in that case.
The timing of this issue is particularly poignant. potential approval of Ethereum-based exchange-traded funds If institutional investors decide to stake ETH using a supermajority execution client and an error occurs when attesting the blockchain, it could cause large amounts of ETH to be lost in a very short time.
There are currently 28 976 695 ETH. stake The network is awash with validators. Around 70% (approximately $20 million ETH), can be attributed validators who run Geth and 16% (5 million ETH), validators who do not. Validators running Geth have to be able to confirm the non-Geth chains. stake The remaining fuel is then burned down to less than a quarter stake. This would mean that around 21.5 millions ETH (or 90%) of these validators would have to be burnt. stakeReduce the Geth stake The total amount of ETH is 7.5 millions, which amounts to less than 2.5 million. stake (2.5 million plus 5 million ETH). The 5,000,000 ETH that are controlled by non-Geth validators will now make up over two-thirds. stakeThey can then finalize the chain. This would be a painful process, which would last for approximately 40-days. The impact would be so great that it would bring the total supply down to 100 million ETH, a reduction of around 18%. Current stakeholders cannot bear the potential consequences of Geth errors.
This is also a real issue that other PoS chains have to deal with. Ethereum is the only blockchain that is trying to prevent this problem by ensuring greater diversity of its Validator client software.
After the 2008 recession, digital currencies emerged. financial The crash saw the government bailing out banks deemed to be insolvent. “too big to fail,” It would be a cruel injustice if an industry that was created to avoid the mistakes of traditional financial institutions ended up repeating them. Few people could have predicted the financial People are now waking up to the dangers of over-reliance on Geth. The danger is now clear, and the solution to it is within reach. As a community we must seize this moment to monitor and maintain Validator Client to ensure that diversity is maintained in the ecosystem for everyone’s benefit.
“This article is not financial advice.”
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Source: crypto.news