Vitalik Buterin stakes only a modest portion of Ethereum ( $0.00 ) , here’s why

Ethereum ( $0.00 ) co-founder Vitalik Buterin stakes a small amount of his ETH due to concerns about security and the complexity of staying safe.

Speaking on the Bankless Podcast, Buterin said he doesn’t stake all his Ethereum ( $0.00 ) , only “a fairly small portion,” because staking safely on the network requires multi-sig, which remains a tricky process.

“if you stake your ETH, the keys to access it have to be public on some system that’s online. For safety, it has to be a multi-sig, and multi-sigs for staking are still fairly difficult to set up. It gets complicated in a bunch of ways.”

Multi-sig refers to requiring more than one user to sign and authorize a transaction. Therefore, crypto assets remain secure even if a private key is compromised.

In 2021, Ethereum ( $0.00 ) Foundation researcher Justin Drake said he doesn’t stake all his ETH. Explaining why, he used a sausage-making analogy, adding that rare, unpredictable events also influenced his decision.

“when you make the sausage, you know how it’s made, and there’s a bunch of tail risk that’s difficult to quantify.”

Input-Output CEO and Cardano ( $0.42 ) founder Charles Hoskinson seized upon Buterin’s comments, saying he stakes all of his ADA – taking the opportunity to infer Ethereum ( $0.00 ) is not “properly designed.”

“I had to listen to this a few times. I’m just at a loss for words. All of our Ada is staked. Guess what, that’s how it’s supposed to be for a properly designed Proof of Stake protocol.“

However, Max Radeleus, the co-Founder of INTU, a protocol that introduced dEOAs (decentralized externally owned accounts) at ETHDenver this year, argued that Buterin might be underestimating what’s possible with continued Ethereum ( $0.00 ) innovation.

EOAs are the most basic type of Ethereum ( $0.00 ) accounts using a public and private key pair. INTU introduced a cryptographic method to split private keys without needing a smart contract wallet, the kind of account likely referenced by Buterin when talking about multi-sigs.

“As Mr Buterin so succinctly highlights, secure solutions on chain are currently difficult; I mean if he has issues with it, who wouldn’t? However, we’re not done innovating on Ethereum ( $0.00 ) yet! dEOAs make it simple to launch multi-party (MPC) accounts which solve many of Vitalik’s issues here, and just perhaps, this is what is needed for further staking adoption.”

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