ETH2.0 is coming, how to participate in Staking?
Editor's Note: This article comes fromCrypto Valley Live (ID: cryptovalley)Crypto Valley Live (ID: cryptovalley)
ETH2.0("peaceful"Crypto Valley Live (ID: cryptovalley)
, Author: Michael, Translation: Liam, reprinted with authorization from Odaily.
Serenity) is an upgrade for the ETH network, aimed at improving scalability, stability, and bringing about some economic changes. ETH2.0 will use sharding to greatly increase network bandwidth and reduce gas costs, thereby reducing the cost of sending ETH tokens and interacting with smart contracts. There will also be some fundamental changes at the economic level. ETH2.0 will allow support for staking nodes and earn ETH as passive income. In many ways, ETH 2.0 represents the culmination of years of hard work by thousands of developers. The ETH2.0 upgrade will happen in 3 different phases starting from Phase 0 (after all, developers are counting from 0 not 1).
Over the past few years, opponents of ETH have often criticized its high transaction costs and the vulnerability of the ETH network during periods of peak usage. So can this upgrade of ETH2.0 solve these problems? Can the scale of the project support the large number of decentralized financial products (DeFi) and blockchain games being built? This guide will cover the ETH2.0 upgrade timeline and the proposed solutions to these problems.
In addition, ETH 2.0 also sets up a validator node (validator node). These staking-based nodes will determine how ETH will operate and how transactions will be verified in the future. So in this guide we explore all of these concepts as well.
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Staking - ETH will move to Proof-of-Stake Consensus, a more energy efficient way to maintain the network.
Ethereum 2.0 Roadmap (via Consensys)
ETH2.0 will fundamentally change the current economic model. Because in fact this update will completely eliminate the concept of PoW mining. Therefore, after the ETH2.0 update is fully completed, the PoW miners of ETH may be "laid off".
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As of April 2020, Prysmatic Labs launched the ETH2.0 Beacon Chain (Beacon Chain) Testnet (Testnet) and achieved exciting results. According to the ETH2.0 update roadmap given above, we are now in the working phase of Phase 0. The launch of the testnet has aroused a lot of response, with more than 20,000 validators signing up and contributing their resources to support the Beacon Chain testnet. ETH founder Vitalik Buterin stated that this will not be the "final" test of the beacon chain, so we can expect more people to participate in this community in the coming months.
Ethereum 2.0 setup and architecture
As shown in the diagram below, we are currently testing the first layer of the ETH2.0 architecture, the beacon chain. Over the next few months, the current phase 0 beacon chain will be gradually completed, and development will be transferred to build the shard chain of phase 1, and finally complete the execution engine of phase 2.
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Phase 0: Beacon Chain Beacon Chain
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Phase 1: Shard Chain
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Phase 2: Execution Engine Execution Engine
Phase 2 will bring about the final form of ETH2.0. This will be when the existing legacy proof-of-work and the latest proof-of-stake networks merge into one. From then on, ETH will be merged into ETH2 and start a new era of ETH.
ETH2 multi-client network testnet (Multi-client network testnet)
On April 28, 2020, Prysm and Lighthouse released a multi-client testnet for ETH 2.0. This test allows ETH2 clients developed by different labs (such as Prysm, Lighthouse or Casper) to communicate with each other.
Ethereum 2.0 Staking rewards
Stake ETH on the validator node
Beacon Node status showing Income and Attestations
ETH2.0 will move to the proof-of-stake consensus (PoS). In the "Phase 0-Beacon Chain" above, we mentioned that the community can stake 32 ETH2 on the validator node. The pledged 32 ETH2 will be used to verify the transactions and status on the network, and serve as a guarantee for the integrity and operational behavior of the verifier node. Those who stake will be rewarded with ETH for their hard work, meaning validators will earn a passive income of ETH and earn ETH as interest over time. Current calculations for ETH2.0 show an annual return on investment (ROI) of approximately 14.2%. This is great for those with ETH who can maintain their funds on a validator node while enjoying passive income. Analysts predict that once proof-of-stake rolls out, it will increase demand for ETH due to its need for staking and validator nodes. At the same time, with the eventual phase-out of ETH mining, there will be less need for GPUs.
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You can see the status of our ETH validator nodes in the image above. We initially had some offline time on that node, so we actually lost 0.01333 ether as a penalty for missing votes. So, the important thing to remember is that once a node is activated, voting will be mandatory. Offline nodes will mean missed votes, resulting in a loss of ETH.
How to set up an ETH validator node
Currently, you can experiment with staking ETH on the ETH 2.0 testnet built by Prysmatic Labs (aka Topaz). Since it is a test, no actual ETH will be used, but Göerli ETH, a testnet version of ETH that is freely available.
Required operating time: 2 days.
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Set up an ETH validator node
This guide is adapted from the Prysm "Topaz" testnet guide
1. Get some Göerli ETH
Göerli ETH is freely available and will be used to stake the 32 ETH required for the node. The easiest way to get Göerli ETH is to use a social faucet.
2. Start the server
You need to be familiar with how to run a VPS server (you can use AWS, Hetzner or Linode).
docker run -it -v $HOME/prysm/beacon:/data -p 4000:4000 -p 13000:13000 \ gcr.io/prysmaticlabs/prysm/beacon-chain:latest \ –datadir=/data
Recommended configurations include 100 GB SSD storage and an Intel Core i7 processor.
docker run -it -v $HOME/prysm/validator:/data \ gcr.io/prysmaticlabs/prysm/validator:latest \ accounts create –keystore-path=/data
3. Start your beacon chainhttps://prylabs.net/participate)
We found the easiest way to do this is through Docker
docker run -it -v $HOME/prysm/validator:/data –network=”host” \ gcr.io/prysmaticlabs/prysm/validator:latest \ –beacon-rpc-provider=127.0.0.1:4000 \ –keymanager=keystore \ –keymanageropts='{“path”:”/data”,”passphrase”:”changeme”}’
4. Generate a validator key pair
5. Start the validator client
6. Complete the activation
Wait about 2 days to activate, after which you are ready to go!
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Frequently Asked Questions (FAQs)
Can we transfer ETH2 to Topaz Testnet?
Currently, the beacon chain testnet does not use real ETH/or ETH2. The testnet runs on Göerli and uses Göerli ETH which can be obtained for free.
Can you get ETH2 back to regular ETH?
In Phase 0, ETH2 cannot be withdrawn as regular ETH. Before phase 3, once converted, ETH2 can only be used on the staking chain.
Will I lose the ETH stored in the node?
Will do. The 32 ETH pledged by the validator node is designed to ensure that the validator node is always up and online. If a node is offline, it is penalized and a small amount of ETH is deducted over time.
What is a "Slash penalty"?
