'Protocol Councils’ Can the Blockchain Ecosystem Trust These People?

Joining us, Riad Wahby, Co-founder and CEO of Cubist, delves into the risks of restaking, potential contagion effects on blockchain security, and the essential questions that the blockchain ecosystem must address.

This episode is sponsored by the Stellar Community Fund

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In this installment of "The Protocol," hosts Brad Keoun, the founding editor of The Protocol Newsletter, and tech journalists Sam Kessler and Margaux Nijkerk,  explore the following stories:

TOPICS | 

Lido DAO Endorses Rivals 

LayerZero launched a Lido stETH bridge last October without asking for Lido DAO's permission. The community responded this week by endorsing a pair of its biggest competitors.

"Blockchain protocols frequently pride themselves on their "permissionlessness" – the idea that anyone, anywhere can build on top of a protocol without asking for explicit approval. But in practice, it is sometimes wiser to ask for permission."

Blockchains and Decentralization

The goal of these "protocol councils,” sometimes called “security councils,” is to nudge these nascent networks toward increasing decentralization, by gradually removing them from under the control of their original developers. How are they different from boards of directors?

PROTOCOL VILLAGE INTERVIEW SEGMENT  

Guest: Riad Wahby 

Riad Wahby is the co-founder and CEO of Cubist, a developer of hardware-backed, non-custodial key storage and signing infrastructure that enables companies to protect staking keys and secure withdrawals.

Takeaways | 

Keys are fundamental in blockchain interactions and require careful management to ensure security.

Restaking introduces risks and potential contagion effects that can impact the security of the underlying blockchain.

The restaking ecosystem offers opportunities for innovation and collaboration, but reputation and risk assessment are crucial for making informed decisions.

Building systems that can withstand non-compliant users and incentivize responsible behavior is essential for the long-term success of blockchain networks.

There is continued interest in blockchain and crypto among students, with a focus on computer security, cryptography, and the intersection of blockchain and AI.

Balancing entrepreneurship and academia requires efficient time management and leveraging the support of graduate students and teaching assistants.

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EPISODE LINKS |  

Lido DAO Rebukes LayerZero by Endorsing Rivals Wormhole, Axelar for Crypto Bridge

As Blockchains