Ethereum co-founder Vitalik Buterin warned that blockchain's cryptographic protections only secure on-chain assets, while off-chain activities relying on validator honesty remain vulnerable to collusion and manipulation without recourse.
Ethereum co-founder Vitalik Buterin issued a stark reminder that while blockchain security prevents even a majority of validator collusion from stealing on-chain assets, this protection vanishes completely when users trust validators with off-chain tasks.
He noted that if 51% of validators collude or fall victim to software bugs, they cannot steal assets stored on-chain, but this ironclad protection vanishes the moment users trust validators with tasks beyond the blockchain’s direct control.
