Is Ethereum Safe? New Vulnerabilities Exposed by Buterin!

• Buterin highlights the potential for a 67% capture attack, allowing attackers to alter Ethereum’s blockchain history and future.
• Proposed solution to increase quorum threshold could inadvertently lower attack costs, creating new vulnerabilities in Ethereum’s security.

During a recent conference in Singapore, Ethereum creator Vitalik Buterin addressed emerging security threats to the Ethereum network, emphasizing potential vulnerabilities that have not been widely acknowledged. 

Despite Ethereum’s robust staking mechanisms, Buterin pinpointed solo stakers as both crucial protectors and potential weak links within the system.

A summary of my fireside chat with @VitalikButerin at the Home Staking Summit in Singapore last week if you weren't able to attend.

*Disclaimer: This also includes some of my prior understanding and interpretation.

Part 1 of 3: The importance of solo stakers

Solo stakers serve… pic.twitter.com/LvkS4umPsH

— Samuel Chong (@stakesaurus) September 24, 2024

Solo stakers, as described by Buterin, serve as the primary safeguards against network corruption and censorship. Their role is essential in ensuring that the Ethereum blockchain remains free from external manipulation and hacker intrusions. 

This group helps to block any efforts that might compromise the blockchain’s operations, thus maintaining its integrity against overt censorship and control.

However, Buterin highlighted the possibility of subtle and indirect threats that could undermine this critical defense line. He specifically mentioned the risk of a 67% capture attack, where adversaries could potentially control more than two-thirds of the staked ETH. 

This level of control would allow them to alter the blockchain’s history and future activities without incurring direct penalties, such as slashing, which are designed to deter such actions.

Addressing these concerns, Buterin suggested that increasing the quorum threshold—for instance, from 67% to 75%—might seem like a viable solution to enhance security. However, he cautioned that this adjustment could inadvertently lower the cost for attackers, introducing new vulnerabilities instead of mitigating existing ones.

Buterin also pointed out more economical strategies that malicious actors might employ to compromise the network. He explained that influencing key community members, such as core developers or major node operators, could be a cheaper and more effective method than mounting a direct, costly attack. 

To fortify Ethereum’s defenses, Buterin advocates for an increase in the number of solo stakers. This strategy would enhance the network’s ability to meet its current finalization thresholds and form a quorum-blocking set, crucial for resisting any potential breaches of security.