# Discussion 2: Delegation / no delegate with Limechain

- Channel: [ZuBerlin](https://streameth.org/zuberlin)
- Date: 2024-06-12
- Duration: 34:28
- Topics: ethereum, blockchain, cryptocurrency, developers, fintech
- Watch: https://streameth.org/watch/6669a98107f92b086c2951e7
- Download: https://vod-cdn.lp-playback.studio/raw/jxf4iblf6wlsyor6526t4tcmtmqa/catalyst-vod-com/hls/870dmeldokgtfs3i/1080p0.mp4

## Description

Clip This video discusses a new model for pre-confirmation in cryptocurrency transactions that reduces the required collateral from 1,000 ETH to just 1 ETH. The speaker explains the original rationale for the high collateral amount was to cover the worst-case scenario of maximum extractable value (MEV) in a single block. However, this approach is costly as it requires overpaying for security every time.

To improve this, a distinction is made between inclusion pre-confirmations, which guarantee a base fee and are economically beneficial when there's no contention on state, and execution pre-confirmations, which are more complex and relate to trades like Uniswap transactions.

The speaker proposes an insurance market model where users pay for coverage based on the actual risk of price movement during transaction confirmation time rather than a flat worst-case fee. This model allows solo validators with minimal collateral to provide pre-confirmations and introduces benefits such as increased access for solo stakers, better risk-reward balance, and stronger user assurance through insurance rather than sheer collateral amount.

The video also addresses potential user experience aspects, how wallets could handle these changes, and how trust networks might impact gateway reputations. Additionally, it touches on issues like denial of service attacks on validators, decentralized encrypted mempools to protect user transactions from front