Ethereum has undergone a tremendous transformation over the past few years, with “The Merge” standing out as a historic shift. Ethereum’s switch from the energy-intensive proof-of-work mechanism to the more efficient proof-of-stake system was a momentous leap in blockchain technology. Since then, the network has operated stably for nearly two years under proof-of-stake, demonstrating its robustness and efficiency. Yet, even with its success, the system is not without its challenges. There are several areas where Ethereum’s proof-of-stake protocol can still be improved, both technically and economically. This article explores some key areas under consideration for improvement, focusing on increasing accessibility for stakers and enhancing block finality.
At present, the Ethereum network takes between 15 and 20 minutes to finalize a block, which is a considerable delay for users and applications. Moreover, participating as a validator requires holding 32 ETH, a steep entry point that many interested participants cannot meet. The vision now is to reduce the time it takes to finalize blocks and lower the barrier to staking participation, potentially allowing validators to stake as little as 1 ETH. This would make staking more democratic, encouraging solo stakers to engage with the Ethereum network and take part in maintaining its security.
One of the key ideas currently being explored is “single-slot finality.” Under this proposal, blocks would be finalized in just one slot, reducing the finalization time to roughly 12 seconds, rather than the current 15-minute window. This would give users almost instant transaction confirmation, creating a smoother and faster experience for everyone using the network. Additionally, single-slot finality could make Ethereum more competitive with other performance-driven layer-1 chains, which typically offer faster transaction times.
Another area of focus is staking democratization. At the moment, the 32 ETH minimum is a significant obstacle for many individuals who want to contribute as validators. Reducing this threshold to 1 ETH could significantly broaden participation, making it more accessible to a wider audience. Polls within the community consistently show that the high entry point is one of the primary reasons more people are not staking on their own. Lowering the bar to 1 ETH would allow a greater number of people to participate in the network’s validation process, enhancing decentralization and security.
However, both of these improvements—single-slot finality and staking democratization—present technical challenges, particularly when it comes to maintaining economic finality. Economic finality is crucial to Ethereum’s security model, as it ensures that even if an attack occurs, the cost to the attacker is prohibitively high. To maintain this level of security, Ethereum requires every validator to sign off on two messages for every finalized block. As the number of validators increases, so too does the time needed to process all their signatures, or the complexity of the node infrastructure required to manage them.
Several proposals have been put forward to address these challenges. One option is to implement better signature aggregation protocols, potentially incorporating advanced cryptographic techniques such as ZK-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge). This could enable Ethereum to process signatures from millions of validators quickly and efficiently, without requiring heavy node infrastructure. Alternatively, a mechanism called “Orbit committees” could be introduced, allowing a medium-sized group of validators to be selected randomly to finalize each block, rather than requiring all validators to participate. This would preserve Ethereum’s economic finality while reducing the overhead on individual nodes, striking a balance between security and efficiency.
Another interesting idea is a two-tiered staking system, where validators are divided into two groups based on their deposit size. The higher-deposit group would be responsible for finalizing blocks, while the lower-deposit group could participate in other important roles, such as delegating their stake to the higher tier or contributing to inclusion lists. This system would still allow for more participants at lower deposit levels, while maintaining the security and stability provided by the higher-tier validators.
Beyond these staking reforms, Ethereum is also exploring improvements in leader election for block proposals. Under the current system, the identity of the validator responsible for proposing the next block is known in advance, which opens up the possibility of a targeted denial-of-service (DoS) attack. An attacker could identify the validator and flood their node with malicious traffic just as they are about to propose a block, preventing them from participating. To combat this, Ethereum researchers are working on a “single secret leader election” (SSLE) protocol. This cryptographic technique would hide the identity of the validator proposing the next block until the moment the block is actually produced, greatly reducing the risk of targeted attacks.
In tandem with these advancements, Ethereum is working on decreasing transaction confirmation times even further, aiming for a reduction from 12 seconds to around 4 seconds. This would drastically improve the user experience, not only on the Ethereum layer-1 network but also for applications built on layer-2 scaling solutions. A faster transaction confirmation time would make decentralised finance (DeFi) platforms more efficient and improve the overall fluidity of the Ethereum ecosystem.
These potential upgrades have profound implications for Ethereum’s future. They would make the network more accessible, secure, and user-friendly, reinforcing its position as a leader in the blockchain space. Single-slot finality could provide a near-instant finalization process, eliminating the need for users to wait several minutes to ensure their transactions are locked in. By lowering the staking requirement, more individuals could become validators, contributing to the decentralisation of the network and enhancing its long-term resilience.
The challenges ahead, however, are not trivial. Implementing single-slot finality, reducing the staking requirement, and maintaining security while minimizing validator overhead are complex problems. There are several paths forward, each with its own trade-offs. One approach might involve brute-force solutions, such as more advanced cryptographic techniques. Another path could be a more measured approach, such as the introduction of Orbit committees or a two-tier staking system. Ultimately, Ethereum’s developers will need to strike the right balance between decentralisation, security, and efficiency.
Ethereum’s journey is far from over. While the proof-of-stake transition has brought significant benefits, the path forward is still full of opportunities for innovation and refinement. The proposed improvements in staking and finality reflect Ethereum’s commitment to continuous evolution, ensuring that it remains at the forefront of blockchain technology. Whether through single-slot finality, staking reforms, or advanced cryptographic techniques, Ethereum is poised to solidify its position as a powerful, decentralised platform that is accessible to all.