Key facts:
Major exchanges like Kraken and Coinbase use the Prysm client.
If this client were to fail, it could commit incorrect data or even fork the network.
A statistic reveals that the new Ethereum network, called Ethereum 2.0 or consensus layer, features a serious level of centralization. 66.9% of validators use the same client, Prysm. This could put the security of the blockchain at risk in the future.
According to statistics presented by the site pools.invis.cloud, two-thirds of consensus layer validators use the Prysm client. That is, they choose that program to implement the Ethereum 2.0 protocol on their nodes. This is considered an “emergency” due to the high state of centralization of the network.
Regarding the other most chosen clients, the developer Jonathan Cook (user jmcook.eth) details in a publication on Mirror.xyz that these are Lighthouse, with 21.8%, and Teku, with 14.1%. Nimbus, Grandine and Lodestar are other of the most used, according to clientdiversity.org.
Another important fact to take into account is the Prysm’s vast advantage over other clients among cryptocurrency exchanges more important. According to the cited data, exchange houses such as Coinbase and Kraken, which have 48,000 and 30,000 validators respectively, have a use of Prysm above 90%.
Likewise, other exchanges such as Binance, with 24,000 validators, use this client in more than 76% of the cases. While they have far fewer validators, exchanges like Bitstamp, OkeX, KuCoin, and Gemini could also be added to this list.
To be a validator on Ethereum 2.0, a user you must have 32 ethers (ETH) deposited in the smart contract of this network. With it, you will have the right to validate new blocks and receive rewards for it.
Why is this centralization in Ethereum dangerous?
Analyzing this question, anyone might think that, if Prysm is the most used client and with such an advantage over the second on the list, it must be because it is the most efficient. However, this is inconvenient because, In the event of a failure with this client, the entire network would be compromised..
As the quoted pools.invis.cloud article explains, this is dangerous for two reasons. Firstly, because there would be a larger number of affected validators in case Prysm fails.
For another, this centralization can be penalized by the Beacon Chain in case of malpractice by one of the clients. When the chain detects a “corrupt” validator, it subtracts ethers from what the validator has on deposit, so that the “good” validators have a majority again.
According to the article by Jonathan Cook, if a bug affected a client with a dominance of one third of the network, this might not cause major consequences. This is because the consensus of at least two-thirds of the validators is needed to confirm a block.
However, if at least two-thirds of the validators are compromised, serious issues could occursuch as the burning of ether in staking or even a fork of the Beacon Chain, with “incorrect information recorded in the history of Ethereum forever”.
The latter happened recently with the current version of Ethereum. As this medium reported in November 2020, a delay in updating the Geth client (currently widely dominant on the network) by the company Infura led to a fork in the blockchain that ended up being resolved shortly after.
To avoid that, the best alternative is to promote the adoption of other customers by the main exchanges and staking pools. This will ensure a safe transition to the new version of the network.
Ethereum prepares for its upgrade to Ethereum 2.0
In the future, the main network of Ethereum will merge with the so-called Beacon Chain, that is, the first of the fragments that will make up the new chain of blocks. With that merger, Ethereum will go from working with proof of work (PoW or proof of work) to a new modality with proof of participation (PoS or proof of stake)
As this milestone approaches for the new version of Ethereum, the number of ethers in stake increases. As CriptoNoticias reported, this figure has already reached 9.4 million ETH, which is equivalent to 8% of the existing total of this cryptocurrency.