Ethereum Proof-of-Stake Consensus Layer: Participation and Decentralization


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Date

2025

Publication Type

Conference Paper

ETH Bibliography

yes

Citations

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Abstract

In September 2022, Ethereum transitioned from Proof-of-Work (PoW) to Proof-of-Stake (PoS) during "the merge" - making it the largest PoS cryptocurrency in terms of market capitalization. With this work, we present a comprehensive measurement study of the current state of the Ethereum PoS consensus layer on the beacon chain. We perform a longitudinal study of the history of the beacon chain. Our work finds that all dips in network participation are caused by network upgrades, issues with major consensus clients, or issues with service operators controlling a large number of validators. Further, our longitudinal staking power decentralization analysis reveals that Ethereum PoS fairs similarly to its PoW counterpart in terms of decentralization and exhibits the immense impact of (liquid) staking services on staking power decentralization. Finally, we highlight the heightened security concerns in Ethereum PoS caused by high degrees of centralization.

Publication status

published

Book title

Financial Cryptography and Data Security. FC 2024 International Workshops

Volume

14746

Pages / Article No.

253 - 280

Publisher

Springer

Event

5th Workshop on Coordination of Decentralized Finance (CoDecFin 2024)

Edition / version

Methods

Software

Geographic location

Date collected

Date created

Subject

Ethereum; Proof-of-Stake; Consensus layer; Decentralization

Organisational unit

03604 - Wattenhofer, Roger / Wattenhofer, Roger check_circle

Notes

Conference lecture held on March 8, 2024.

Funding

Related publications and datasets

Is new version of: 10.48550/arXiv.2306.10777