Ethereum Verifiers Continue to Exit in Large Numbers: Is It a Cause for Concern?

03/18/2023 02:34 • NFT Newsflash • 144 views

On March 18th, according to Glassnode data, the number of voluntary exits by Ethereum verifiers reached 183 on March 16th, setting the second highest record since the merger. Voluntary exits refer to verifiers choosing to stop participating in the consensus and leave the verifier pool queue. They will no longer propose or prove blocks, and they will not be able to withdraw the previously pledged ETH after the upgrade in Shanghai. （cryptoslate）

Data: On March 16th, 183 Ethereum verifiers voluntarily withdrew, setting the second highest record since the merger

Analysis based on this information:

According to recent reports by Glassnode, Ethereum has witnessed a significant number of voluntary exits from verifiers. The number of Ethereum verifiers who chose to leave the verifier pool queue reached an unprecedented milestone of 183 on March 16th, the second-highest record since the merger. The verifiers are opting out of the consensus process, which means they will no longer be proposing or proving blocks, and won’t be able to withdraw the previously pledged ETH after the Shanghai upgrade.

The increasing number of voluntary exits is a cause for concern for the Ethereum community, given the significant role verifiers play in the blockchain’s functioning. Verifiers are validators who help secure the blockchain’s consensus mechanism by verifying transactions and blocks. If a large number of verifiers opt-out of the consensus process, the security of the blockchain could be compromised.

One reason for the increase in the number of voluntary exits could be the upcoming Ethereum upgrade known as the Shanghai Hard Fork. The upgrade is expected to bring significant changes to the Ethereum network, including Transaction fee changes, block time reduction, and the EIP-1559 proposal. These changes would affect the blockchain’s consensus mechanism, and some verifiers might be exiting due to the uncertainty of how these changes would impact their experience in the verifier pool queue.

Another possible reason for the increase in the number of exits could be the decrease in rewards for verifiers. Currently, verifiers receive rewards in the form of ETH for validating transactions and proposing blocks. However, with the recent surge in ETH’s price, the rewards have comparatively decreased, leading verifiers to opt out.

In conclusion, the increasing number of voluntary exits by Ethereum verifiers is a cause for concern for the Ethereum community. It highlights the need for better incentives and rewards for verifiers to ensure the security and stability of the blockchain. Additionally, as the Ethereum network undergoes significant changes, clear communication and support for verifiers would be essential to ensure smooth transitions.

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/5196.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.