Buterin Expresses Reluctance to Stake His ETH
During a recent Twitter podcast, Ethereum's creator revealed that the majority of his ETH holdings are kept in hardware wallets. He has only staked a minor portion due to potential security risks associated with staking.
This unexpected revelation left the conversation's participants momentarily speechless.
Vitalik calmly explained that currently, his personal requirements for asset security storage are unattainable.
This is because to safeguard staked Ether, it's necessary to use multisig wallets that must be accessible in an online subsystem. However, multisig for staking isn't set up yet, and it's unclear when it will be.
Vitalik calmly explained that currently, his personal requirements for asset security storage are unattainable.
This is because to safeguard staked Ether, it's necessary to use multisig wallets that must be accessible in an online subsystem. However, multisig for staking isn't set up yet, and it's unclear when it will be.
Because if you stake your ETH, the keys that access it have to be public on a subsystem that is online. For safety, it has to be a Multisig. Multisig for staking is still fairly difficult to set up; it gets complicated in a bunch of ways
The listeners' reactions were priceless. Source: Twitter
This revelation triggered a response from Charles Hoskinson of Cardano. He expressed his astonishment at the circumstances and confirmed that he had staked all of his ADA in the project's liquidity pool.
Buterin didn't stop there. Later that day, he expressed reservations about the idea of restaking, as the process introduces the risk of centralization.
Therefore, he doesn't view the EigenLayer protocol, which is currently testing this feature for Ethereum, as a viable option.
Therefore, he doesn't view the EigenLayer protocol, which is currently testing this feature for Ethereum, as a viable option.
We've previously reported that Vitalik often addresses the risks associated with using the blockchain he designed and his own cryptocurrency. He willingly shares his perspective on the threats of centralization and even admitted once to not being able to recover a lost key to his wallet.
However, none of this seems to have affected the price of ETH.
On the contrary! Crypto enthusiasts have grown accustomed to Buterin's confessions and they know: if Vitalik has voiced an issue, he's already searching for solutions.
It seems that the Ethereum creator follows the adage "forewarned is forearmed," and doesn't intend to sell his community short.
