The current Proof-of-Stake algorithm used by Ethereum’s second cryptocurrency network requires multiple cryptographic signatures from validators for the blockchain to function. This complexity not only strains the system and demands more resources, but also leads to an increase in the number of signatures as more validators join Ethereum. Furthermore, upcoming updates will necessitate an even higher number of signatures.
To mitigate these challenges, Buterin has suggested modifying the consensus algorithm’s design to cap the number of signatures at 8,192 per slot. This can be accomplished through various means, with Buterin proposing three potential options:
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Emphasize decentralized staking pools, which would require a significant amount of ether to become a validator. In other words, validators would need to join pools.
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Implement two tiers of validators with different ETH volume requirements for signing transactions. Consequently, validators of different levels would have varied priorities.
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Randomly select a certain number of validators for each slot, effectively rotating them. This approach would distribute the load and reduce the number of signatures, albeit at the cost of slightly complicating the system.
At the recent Devconnect conference in Turkey, Buterin presented a comprehensive strategy outlining the future development of Ethereum.