Ethereum Developers Group Launches Network for Developers Testing the withdrawal system of ETH deposited or locked by the Validator from the current Stake withdrawal system has not been activated yet.
Taking crypto coins is similar to a fixed deposit in a bank. to earn interest This system of depositing or locking coins is called “Staking”, where the depositor will receive earnings in crypto coins in the same currency deposited here, ETH.
Staked ETH cannot be withdrawn or traded. Until the conditional period comes when the stake occurs on the blockchain that uses a consensus Proof of stake (PoS) from the person who deposits coins is equal to It acts as a verifier of network transactions, or “Authentic” for short.
So if ETH is unlocked to withdraw deposited coins, it has many implications for the future of Ethereum. Let’s see what will happen.
???? Launching a network to test the lock coin extraction system on the blockchain
Recently, a group of Ethereum developers have launched a network to test a blockchain validator withdrawal system.
Ethereum developer Marius Van Der Wijden has revealed that the network of developers will prepare Ethereum to “activate the withdrawal system” of its validators by next year. When there is an upgraded version of the blockchain called “Shanghai”
* Related News : Ethereum Launches Shanghai Upgrade Test Network, Paving the Way for the Next Phase
However, the fact that Ethereum does not allow a system to withdraw coins has created concerns that “Central Power” after the change to a “centralized” consensus mechanism. In an interview with The Block, Wijden said:
“This is the developer’s first network. With the ability to withdraw coins through all versions of the Ethereum software, this is a significant development. “
“It also gives other groups of Ethereum transaction verification software developers an opportunity to test withdrawals by joining the developer network.”
Wijden said the creators of blockchain transaction verification software Testing a system to remove locked coins on the blockchain. To prepare before upgrading Shanghai
such a network of developers focused only on the withdrawal system But we have not tested other features that will come with the Shanghai upgrade.
???? How important is opening a system to withdraw coins that take money on Ethereum?
Looking back at Ethereum’s major upgrade, The Merge, it transitioned to a “consensus-like” consensus mechanism. Proof of balance, there is a prerequisite condition for this upgrade to be successful. “Users must deposit their own ETH coins” or deposit them together with a group of users to lock them onto the Ethereum blockchain to complete a certain goal. The most convenient way to lock coins is Deposited with a platform that provides Ethereum staking services.
Although users eventually managed to lock up the target number of ETH to complete The Merge upgrade, new problems arose. Because users cannot withdraw their own coins from the platform of the staking service provider because the Ethereum network has not yet opened a withdrawal system.
????After upgrading The Merge, there was a charge. “Powerful consolidation”
After The Merge upgrade, Ethereum staking providers such as Coinbase, Kraken, Binance, Staked.us, Bitcoin Suisse, stancfish, and Figment have become Ethereum’s largest holdings!
These coins are deposited with the characters of transaction validators. As a result, these people He has more decision-making power on Ethereum than the actual owner of the coin.
This is why experts in the Ethereum community have expressed concern that the blockchain is at risk of centralization.
However, Ethereum may be able to resolve these controversies. When the system is opened to withdraw coins locked on the network itself. Because users will be able to recover their own Ethereum coins from fraudulent transaction validators.
???? If Staking is unlocked, it will allow users to stake their own coins. you don’t have to give other people a deposit
In addition, if the withdrawal system is opened users will be able to do something called “Manual coin placement” by enabling the Ethereum transaction verification software without the need of a third party.
which in upgrading Shanghai will allow users Ethereum, which is locked in the network, or stETH, a very popular digital polling token, can be exchanged for regular Ethereum.
Wijden notes that currently six ethereum transaction verification software creators have already joined the developer network: Lodestar, Teku, Lighthouse, Nethermind, and Geth.
source: theblock
* Cryptocurrencies and digital tokens have a high level of risk. You may lose the entire investment amount. Study and invest appropriately with your risk appetite.
