Drop in Ethereum Verifiers’ Participation Raises Questions over Network Health

03/18/2023 02:34 • Crypto & Markets • 67 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:

The recent data from Glassnode has brought the issue of Ethereum verifiers’ participation to the limelight. As per the data, the number of voluntary exits by Ethereum verifiers has reached an alarming high of 183 on March 16th. It is the second-highest record since the merger, and it is a cause of concern for network health.

Verifiers are the ones who participate in the consensus by proposing and validating blocks. They also stake a certain amount of ETH to ensure network security. However, when a large number of verifiers choose to voluntarily exit from the verifier pool queue, it can severely impact the network’s health.

The reason behind the sudden surge in voluntary exits is not known yet. However, it can be due to several factors such as increased competition for blocks, declining rewards, or dissatisfaction with the recent upgrade in Shanghai. The Shanghai upgrade has made changes to the network’s consensus rule, which may have caused some verifiers to leave.

Whatever the reason may be, the decrease in verifier participation is worrying for Ethereum. It may cause delays in block production and impact transaction processing time. Furthermore, it may discourage investors who rely on a fast and secure network.

The announcement that the voluntarily exiting verifiers will not be able to withdraw previously pledged ETH after the Shanghai upgrade has added to their concerns. This may have forced them to reconsider their participation in the consensus, leading to a surge in voluntary exits.

In conclusion, the high number of voluntary exits by Ethereum verifiers is not a positive sign for the network’s health. Ethereum must find ways to ensure the participation of these verifiers if it wants to maintain its position as a leading blockchain platform. The community must address the underlying issues that have caused this decline and address them promptly.

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