Ethereum: Negative points of liquid proof
Speaking of cryptocurrencies such as Ethereum, many investors and users are attracted to its innovative smart contract platform and decentralized character. However, one aspect of the Ethereum security model has been the topic of expert debate: evidence of rate (POS). Although the Ethereum POS unanimous algorithm has improved significantly over the years, this system really has the negative points to consider.
What is the evidence of the rate?
The evidence of the rate is the mechanism of consensus used by cryptocurrencies such as Ethereum, Bitcoin Cash and others. It works as follows:
- The node network checks transactions in the blockchain.
- Nodes with more “pillar” (i.e., more ether or other tokens holding their purses) have a greater chance of being chosen to approve transactions and new blocks.
- Validators who successfully create and confirm the block are rewarded with new tokens that can be used to “air”.
Liquid proof negative
Although the evidence of the rate has been improved over the years, its security problems remain. Here are some of the negative points:
1
Centralization : In POS systems, validators can become too centralized around a small group of nodes, creating one point of failure. If this group should be threatened, the network can be seriously affected.
- 51% attack : 51% attack option if the validator group agrees to control more than half of the network rate. This can cause a temporary disruption to the network, making it vulnerable to attacks and use.
3
Lack of scalability : POS systems have historically struggled with scalability issues that can cause congestion on blockchain and reduce transaction throughput.
- Energy Consumption : The energy needed to provide the POS system is significant, raising concerns about the environmental impact of these networks.
- vulnerabilities : As with any complex system, POS networks are not immune to vulnerabilities. For example, if a malicious actor used vulnerability in the validation process, they could potentially control a large part of the network rate and start the attack.
Ethereum vulnerabilities
Ethereum POS Consensus algorithm is considered safer than some other systems because of this:
1
Delegated Proof of Rate (DPO) : Introduced in 2016, DPO has improved significantly over the years, with greater emphasis on decentralization and public control.
- Optimization of the smart contract : Ethereum’s smart contract platform allowed to create more efficient and safer validation algorithms, reducing the likelihood of vulnerability.
Conclusion
While the evidence of the rate is not characteristic, it has improved over the years through various improvements. However, the potential negative points must be taken into account when evaluating the mechanism of this consensus. As with any complex system, it is important to weigh the benefits against risks and take on a nuanced approach to providing these networks.
What can you do?
To reduce some of the negative points of the shares:
1
Select decentralized alternatives : Consider alternatives, such as delegated rate evidence (DPO) that offer greater decentralization and public control.
- Update and audit your wallet regularly : Save your wallet software updated to make sure you have the latest security patches.
3
Educate yourself on Ethereum POS features
: Understanding POS strong and weaknesses can help you make conscious decisions about using these networks.
Being aware of the potential proof of proof, you can make more informed decisions by evaluating cryptocurrencies such as Ethereum.