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Vitalik Buterin touched on staking solutions on Ethereum at the ETHTaipei event in Taiwan. In his speech, Buterin stated that he understood the concerns of centralisation and mentioned the Rainbow Staking solution.

Stating that both staking in general and liquid staking tokens have started to pose a danger of centralisation on the Ethereum blockchain, Buterin pointed out that the number of single-person stakers is very small. Buterin stated that in addition to the financial difficulty of owning 32 ETH, there are also technical difficulties such as running its own node.

As it is known, in order to be able to stake and verify in the Ethereum network, a person must have at least 32 Ether. Today, this figure corresponds to approximately $115,000. And users who do not have such financial power but want to stake, entrust their Ether to platforms that provide liquid staking services. The most well-known platform in this regard is Lido Finance. lido currently has more than 60% dominance in the Ethereum staking area. According to many experts and analysts, this creates a serious danger of centralisation.

The Rainbow Staking solution proposed by Buterin against this threat suggests two types of heavy and light staking:

You basically try to explicitly separate out those two and potentially require both heavy stakers and light stakers to sign off on a block in order for the block to get finalized, he said. So you try to add the security of both of those approaches together.

In rainbow staking, heavy stakers, in other words those who have more Ether, can sign every slot. However, on the other hand, light stakers can sign the slots with a lottery system.

Buterin added that serious research and studies are still needed to develop and implement this system, and he made the following statements:

To me, the biggest questions here are not even technical; theyre philosophical. It is important to understand the intended answer behind ways to enable lazy ETH holders who want rewards to participate in securing the Ethereum network. Buterin said.

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Vitalik Buterin unveils plan to secure Ethereum with 'Rainbow Staking' - Uzmancoin