Vitalik Buterin Proposes Distributed Validator Technology for Ethereum Staking

Ethereum co-founder Vitalik Buterin has suggested integrating distributed validator technology (DVT) into the blockchain's staking mechanism to streamline the process and enhance the underlying technology. According to Cointelegraph, Buterin introduced the concept of 'native DVT' in a post on the Ethereum Research forum, highlighting its potential to allow Ether (ETH) stakers to operate without depending entirely on a single node. Currently, Ethereum validators are limited to running one node to secure the blockchain, which can lead to penalties if the node fails. Implementing DVT would enable validators to distribute their keys across multiple nodes, thereby minimizing the risk of penalties. Buterin explained that the key is secret-shared among several nodes, with all signatures being threshold signed, ensuring the node functions correctly as long as more than two-thirds of them remain honest. Buterin noted that various protocols utilize DVT, although they do not perform full consensus within each validator, offering slightly less robust guarantees but simpler setups. He proposed that DVT should be embedded within the protocol itself, suggesting a straightforward alternative by enshrining DVT into the protocol. His design allows a validator to create up to 16 keys or 'virtual identities,' which operate independently but are recognized as one entity by the blockchain. This 'group identity' is considered to have taken an action, such as block creation, only if a sufficient number of 'virtual identities' approve it, with rewards or penalties assigned based on the majority's actions. Buterin emphasized the simplicity of this design from a user's perspective, as DVT staking involves running copies of a standard client node. He added that this approach would benefit security-conscious stakers with substantial ETH holdings, enabling them to stake in a more secure setup without relying on a single node. This would facilitate stakers in managing their tokens independently rather than through a provider, thereby enhancing the decentralization of staking. Buterin's proposal is part of his ongoing efforts to make Ethereum more user-friendly, though it requires further discussion before potential implementation into the network.