Ethereum 2.0 Staking Mechanism Research Report
Overview Overview
Overview Overview
From the perspective of pledge rate of return, the earlier a validator joins ETH2.0, the higher the annualized rate of return, the purpose is to encourage more nodes to join the verification when the genesis block starts. The greater the number of verifiers participating in the entire network, the higher the security of the entire network, and finally achieve a balance between the number of nodes, security, and node profitability.
Report report
Report report
1. ETH 2.0 Beacon Chain Introduction
After Phase 0 is implemented, the next milestone in the Eth2.0 roadmap is Phase 1, which will implement sharding and create 64 shard chains.
image description
Source: ethos.dev
In the planning of Ethereum 2.0, the beacon chain in Phase 0 only supports the Staking function, and cannot yet support functions such as sharding, virtual machines, and transfers.
ETH users can become a validator of the beacon chain by staking ETH to protect the security of the entire Eth2.0 network, and at the same time obtain corresponding ETH rewards according to the pledged amount.
2. Staking Mechanism Introduction
1) Introduction to the verification mechanism
The verification node will be randomly selected to become the Block Proposer, that is, the producer of the "block Slot", and at the same time may be randomly divided into Attesters on the network, that is, the verification voter of the "block Slot". The specific logic can be seen in the figure below, that is, every time a random verifier proposes to produce a new slot, it will be voted and verified by other verifiers acting as Attesters. If the vote is passed, the proposing verifier will get the ETH reward from the network.
image description
Source: ethos.dev
The verifiers who act as Attesters will also receive ETH rewards from the network for the accumulated number of verifications, that is, the number of Attestations.
2) Verification node client classification
According to the Topaz Testnet published by Prysmatic Labs, current verifiers mainly run two types of clients:
Beacon chain client Beacon chain client;
Validator client Validator client.
When running the beacon chain client, the verifier mainly handles node information synchronization, broadcast block and block verification, etc.; when running the verifier client, it mainly links the nodes of the beacon chain, communicates with the beacon node, and Blocks are signed.
A validator client only supports 32 ETH pledges, and users can run multiple validator clients to stake more ETH.
3. Staking income
1) The number of pledges
Each validator needs 32 ETH to activate, and when the balance of the validator falls below 16 ETH, the beacon chain will stop the work of these validators.
However, users can pledge excess ETH by running multiple validator clients, such as 64 ETH, 320 ETH, etc.
2) Pledge cycle
According to the technical documentation of ETH2.0, the verifier can choose to release the pledge after working for 2048 Epochs, that is, nearly 9 days.
When canceling, the verifier needs to wait for 4 Epochs before withdrawing its pledge. Within these 4 Epochs, the verifier may still face reports and fines.
A non-evil verifier only needs to wait about 27 hours to finally complete the release of the pledge and withdraw the previously pledged ETH. Conversely, if a malicious validator is slashed, he must wait 8192 Epochs, or about 36 days, before he can withdraw his balance.
3) Staking income impact factor
In the current design architecture, the main factors affecting the validator's reward rate of return are:
The time to participate in the pledge. Theoretically, the earlier the participation time, the higher the pledge rate of return.
The issuance rate of the ETH 2.0 network. According to the current issuance plan proposed by Vitalik, the maximum annual issuance rate of ETH will not exceed 2%. The maximum issuance may increase with the number of pledged ETH in the overall network, but the annualized rate of return of a single validator may decrease with the increase in the number of validators.
Number of validator clients to run. Although a validator client can only pledge 32 ETH, users can increase the probability of a block proposer by running multiple validator clients, and reduce the probability of a single client being offline, thereby improving the overall annualized rate of return.
offline punishment. When the verification client of the verifier is offline, it will be punished by the network offline, which will reduce its verification income.
Do evil and confiscate. When the verifier does evil, the pledged ETH will be confiscated by the network.
image description
Source: EthHub
Source: EthHub
It should be noted that according to Vitalik Buterin, these are the largest numbers in the above figure. In practice, there are many factors that may reduce the total issuance of ETH and the rewards of validators.
But even the highest inflation rate according to Vitalik's proposal is much lower than the 4% inflation rate of the current ETH 1.0 PoW network.
Computing costs. The verifier needs to run the beacon chain node and the verifier client, which needs to occupy personal computer or server resources. Taking macOS as an example, the configuration requirements suggested by the official testnet are as follows:
image description
Source: Prysmatic Labs, Standards Consensus
Overall uptime and maintenance costs. Users need to ensure that their validator nodes are online without downtime, or their stake could be slashed.
image description
Source: Etherscan, Standard Consensus
Source: Etherscan, Standard Consensus
image description
Source: Etherscan, Standard Consensus
According to the test network data of the Ethereum browser Etherscan beacon chain, it can be seen that the annualized rate of return of the validator who ranks first in Staking yield can be as high as 38.06%, while the annualized rate of return of the validator ranked tenth is 18.15%. The difference is nearly double.
Conclusion
risk warning:
risk warning:
Be vigilant against illegal financial activities under the banner of blockchain and new technologies. The standard consensus resolutely resists various illegal activities such as illegal fundraising, network pyramid schemes, ICO and various variants, and dissemination of bad information using blockchain.
