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The growth of staking on Beacon Chain is increasing because of the Ethereum Merge. Many stakers on the consensus layer have done so through Lido Finance.
The project in its recent blog post disclosed that among new stakers on the Beacon chain who connected in the past 30 days had made use of the staking protocol.
Is Lido Becoming A Centralizing Force?
The increased activity on the Beacon Chain with the on-set of Ethereum Merge was expected. Now over $35 billion equivalent in staked assets secures the blockchain, with the major share of staking projects in the past month, according to Lido. This as a result has given rise to concerns regarding centralization among the community, which Lido didn’t ignore.
Lido states that although this validates their goal was to democratize staking in Ethereum, some have pointed out that such huge success can result in Lido becoming a centralizing force. Lido acknowledged these concerts, saying the people and their concerns are both important to them and also valuable to Ethereum as a whole.
Lido has also declared that it would be adopting Distributed Validator Technology (DVT). With the system running, it would classify validators into independent committees that together will propose and attest to blocks.
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To mitigate the risks linked with an individual validator underperforming or being dishonest is the final goal. Lido can pair untrusted node operators” with a major chunk of trusted node operators through the implementation of DVT, hence further increasing decentralization without risking Lido stakers on Ethereum.
The development of a Node Operator Score(NOS) is another improvement that the staking platform wants to perform. The creation of NOS will be done from different metrics and distribute stake on the basis of that. Anyone can join as a node operator and build up a stake over time, with the scoring system.
Because of its connection to the Ethereum 2.0 upgrade, LDO, its native token had increased by 257% from a mere $1.36 on 21st February reaching a high in 2022 of $4.86 in just a span of 10 days.
Ethereum Merge To Arrive Little Late Than Expected
The Ethereum Merge is scheduled to take place after June this year although the traction has been witnessed to be going strong. Tim Beiko, the leading developer at Ethereum, has disclosed that “The Merge” is in its final stages. Beiko also emphasized that the initiative will be happening a little later than expected. “The Merge” is considered a stepping stone for the blockchain.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
