The non-profit organization "Ethereum Foundation" that supports the cryptocurrency (virtual currency) Ethereum (ETH) announced on the 10th a report on six areas that Ethereum should focus on for future improvements.
This is part of the "Trillion Dollar Security Plan" to make Ethereum a safe ecosystem that can handle trillions of dollars in value. The foundation stated as follows.
This initial report focuses on identifying and mapping the current issues and challenges. The next step is to select the most prioritized issues, identify solutions, and work with the ecosystem to address them.
Additionally, because the Ethereum ecosystem is decentralized, ensuring security cannot be done by a single organization alone; it requires the cooperation of independent related communities around the world that build and maintain wallets, developer tools, and more.
Specific Areas for Improvement
The Ethereum Foundation specifically cites the following six areas for improvement.
User Experience (UX)
Smart Contract Security
Infrastructure and Cloud Security
Consensus Protocol
Monitoring, Incident Response
Social Layer and Governance
First, regarding user experience, it incorporates issues such as reducing the risks of private key management and the approval problems when using the app.
Regarding the latter, it was pointed out that when users utilize DeFi (Decentralized Finance), it is common to grant specific permissions to the underlying applications.
It is stated that in many cases, granting approvals without limit is the default, which may expose users to risks such as malicious applications. Even if users grant approvals to legitimate smart contracts, there is a possibility that their funds could be leaked if those contracts themselves are compromised.
Next, regarding the security of smart contracts, I pointed out the risks associated with having an overly broad scope of authority and the possibility that developers may use unaudited components in the application.
In addition, the item regarding the consensus protocol mentioned the centralization of staking as one issue. It pointed out that the majority of validators are concentrated in liquid staking protocols, custody services, and large node operators.
This centralization, if several entities managing a large amount of stake were to collaborate, could lead to the risk of seizing governance.
What is liquid staking?
A DeFi (Decentralized Finance) mechanism that allows you to earn staking interest on cryptocurrencies while managing alternative assets (staking proof tokens).
Additionally, the "social layer" of Ethereum refers to a collective of people, organizations, companies, and governance processes that influence the behavior within the Ethereum ecosystem.
Such social layers themselves have vulnerabilities to specific attacks and risks, indicating that there is room for improvement in this aspect.
On the 4th, the Ethereum Foundation announced its financial management policy. Previously, they only held Ethereum on hand, but now they are operating it through staking and DeFi (decentralized finance), strengthening the sustainability of their finances.
Ethereum (ETH) News and Prices
Thorough Explanation of Investment Benefits and Risks
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Six areas of security enhancements for Ethereum to support several trillion dollars announced by the foundation.
The non-profit organization "Ethereum Foundation" that supports the cryptocurrency (virtual currency) Ethereum (ETH) announced on the 10th a report on six areas that Ethereum should focus on for future improvements.
This is part of the "Trillion Dollar Security Plan" to make Ethereum a safe ecosystem that can handle trillions of dollars in value. The foundation stated as follows.
This initial report focuses on identifying and mapping the current issues and challenges. The next step is to select the most prioritized issues, identify solutions, and work with the ecosystem to address them.
Additionally, because the Ethereum ecosystem is decentralized, ensuring security cannot be done by a single organization alone; it requires the cooperation of independent related communities around the world that build and maintain wallets, developer tools, and more.
Specific Areas for Improvement
The Ethereum Foundation specifically cites the following six areas for improvement.
First, regarding user experience, it incorporates issues such as reducing the risks of private key management and the approval problems when using the app.
Regarding the latter, it was pointed out that when users utilize DeFi (Decentralized Finance), it is common to grant specific permissions to the underlying applications.
It is stated that in many cases, granting approvals without limit is the default, which may expose users to risks such as malicious applications. Even if users grant approvals to legitimate smart contracts, there is a possibility that their funds could be leaked if those contracts themselves are compromised.
Next, regarding the security of smart contracts, I pointed out the risks associated with having an overly broad scope of authority and the possibility that developers may use unaudited components in the application.
In addition, the item regarding the consensus protocol mentioned the centralization of staking as one issue. It pointed out that the majority of validators are concentrated in liquid staking protocols, custody services, and large node operators.
This centralization, if several entities managing a large amount of stake were to collaborate, could lead to the risk of seizing governance.
What is liquid staking?
A DeFi (Decentralized Finance) mechanism that allows you to earn staking interest on cryptocurrencies while managing alternative assets (staking proof tokens).
Additionally, the "social layer" of Ethereum refers to a collective of people, organizations, companies, and governance processes that influence the behavior within the Ethereum ecosystem.
Such social layers themselves have vulnerabilities to specific attacks and risks, indicating that there is room for improvement in this aspect.
On the 4th, the Ethereum Foundation announced its financial management policy. Previously, they only held Ethereum on hand, but now they are operating it through staking and DeFi (decentralized finance), strengthening the sustainability of their finances.
Ethereum (ETH) News and Prices
Thorough Explanation of Investment Benefits and Risks
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