Vitalik's New Proposal: Multi-Node Staking to Reduce Risks, Ethereum Staking Ecosystem Faces Change

Ethereum co-founder Vitalik Buterin proposed integrating native Distributed Validator Technology (DVT) into the Ethereum staking mechanism during a research forum. This proposal allows ETH stakers to run the same validation key across multiple nodes, completing validation through signatures from the majority of nodes, thereby avoiding penalties caused by single-node failures. The scheme is still under discussion but has already attracted widespread attention from developers and the community.

Pain Points of the Current Staking Mechanism

Currently, each Ethereum validator relies on a single node. If the node goes offline or encounters issues, the validator faces the risk of reduced rewards or penalties. This single point of dependency creates high technical and risk barriers for individuals and small to medium institutions, limiting broader participation in staking.

According to the latest data, Ethereum’s staked amount has reached a historical peak, indicating continuous growth in market demand for staking. However, the risk concentration in the existing mechanism remains, which is the core issue Buterin aims to address with this proposal.

Core Innovation of Native DVT

Buterin’s “Native DVT” design disperses the same validation key across multiple nodes using threshold signatures. As long as the majority of nodes remain operational and honest, the system can continue providing validation services. Even if some nodes go offline, signatures from the majority suffice to validate, and the validation is considered effective.

Technical Details

This scheme allows each validator to create up to 16 “virtual identities.” These virtual identities operate independently on different nodes but are regarded as a single entity on-chain. When the majority of virtual identities complete signatures, the system recognizes that the validator has completed block proposals or attestations, and rewards or penalties are issued accordingly.

The cleverness of this structure lies in both improving fault tolerance and maintaining transparency at the protocol level. Stakers do not need to rely on custodial service providers; they only need to run multiple standard client copies.

Comparison with Existing Schemes

Impact on the Ethereum Ecosystem

Enhancing Decentralization

Native DVT enables more individuals and institutions to participate directly in Ethereum staking without relying on large staking service providers. This helps break the current concentration of staking power and promotes a more decentralized network.

Lowering Participation Barriers

Buterin emphasizes that this design imposes almost no additional complexity on users. Stakers only need to run multiple standard client copies without learning new technical frameworks or relying on third parties. This significantly reduces the technical barriers to participation.

Strengthening Network Security

The multi-node signature mechanism improves the network’s fault tolerance. Even if some validator nodes encounter issues, the overall network stability remains unaffected. This is crucial for enhancing Ethereum’s long-term security boundary.

Market Response and Outlook

Market data shows ETH currently priced at $3,015.80, up 0.80% in 24 hours. Despite an 8.94% decline over the past 7 days, Ethereum’s staked amount has hit a record high, and network activity on January 18th reached a new peak, indicating ongoing market optimism about Ethereum infrastructure improvements.

This proposal is part of Buterin’s recent series of initiatives aimed at improving user experience and network resilience. As Ethereum’s staking scale continues to grow, DVT is widely regarded as an important step toward increasing network stability and is expected to be a key focus of future infrastructure upgrades.

Summary

Vitalik’s native DVT proposal represents a significant upgrade direction for Ethereum’s staking ecosystem. By employing a multi-node signature mechanism, this scheme offers notable advantages in lowering technical barriers, enhancing fault tolerance, and increasing decentralization. Although still under discussion and requiring community evaluation and consensus, its strategic significance for Ethereum’s long-term development is evident. If approved, it will further improve Ethereum’s staking infrastructure, attracting more participants to operate validator nodes directly, which is vital for maintaining Ethereum’s decentralization vision.