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5 reasons to be a verifier of Ethereum 2.0

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Why ethereum 2.0 is "a safe haven for lazy verifiers"?

Original title: Why Ethereum 2.0 is "A safe haven for lazy verifiers"?

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On November 4, Danny Ryan, the head of Ethereum 2.0, launched The ETH2 deposit contract and announced that the certificate of Interest (PoS) version of Ethereum would finally be launched on December 1.As of press time, Ethereum enthusiasts had deposited 52,961 Ether entries, which accounts for 10.1% of the contract's online requirement.But why would people want to put their money into a network that hasn't launched yet? Why might it be a wise decision to be the verifier of the second most popular blockchain? What's so special about the ETH2 verifier? Why ETH2.0 is "a safe haven for lazy validators", etc., this paper will interpret it from the perspective of benefits, costs and risks of becoming a validator.

The "ticket" for ETH enthusiasts to join ethereum 2.0 validation is not cheap, with the lowest pledge being 32 ETH, or almost $14,350. At the same time, there are many impressive economic and technical catalysts for participation in ethereum 2.0 pledge. With that in mind, here are five reasons to be ethereum 2.0 verifier:

1. Ethereum 2.0 offers a very high annualized pledge reward.

2. Before Ethereum 2.0, FOMO could drive ethereum prices higher.

3. The Ethereum project is five years old, with a passionate community and an enduring reputation.

4. Intuitive deposit flow through Launchpad.

5. "tolerance" rule for certifier (below uptime requirement).

The pledge to reward

As Ethereum co-founder Vitalik Buterin pointed out in a recent article on the Proof of Interest (PoS) consensus, a 15% annual bonus is enough to motivate people to pledge investments.

According to StakingRewards.com, almost all returns of 15 percent or more come from early or less-reputable programs. Only Ethereum's competitors Zilliqa(ZIL) and Near Protocol(Near) were able to compete with ETH2's estimated rewards, with its APY at 21% and 15%, respectively.

By contrast, none of the top 20 bills offered double-digit returns. Thus, 15% ETH2 looks like a good chance.

FOMO spread

The euphoria surrounding Ethereum 2.0 is far from peaking. According to Google trends, Google search interest in ethereum 2.0 is down 77% globally from its all-time high in early August this year.

For U.S. users, the measure is down nearly 60 percent from its peak. But ethereum continued to rebound in mid-October, and interest in buying ethereum could catalyse a sharp rise in prices.

Old and grow stronger

Although Ethereum 2.0 is not the same network as Ethereum 1.0, and some cryptographic entrepreneurs refuse to even see it as a relationship between predecessor and successor, the new Ethereum is maintained and developed by the same team and community. Unlike DeFi products, which are usually created from scratch, ETH2 retains the credibility of ETH1.

So users should not be afraid of delisting scams, "fleecing" or hidden Ponzi schemes.

The ETH pledge

The Ethereum 2.0 team reiterated that no money could be sent directly to the deposit contract address, or the transaction would fail. Ethereum enthusiasts should use itETH2 Launchpad(Click to enter the pledge page) to implement the pledge.

On Launchpad, every potential depositor can find a three-step manual on how to join Ethereum 2.0 deposits. A potential verifier should read the validation rules, create a unique verifier key, and transfer the interest to the deposit environment.

At press time, supporters of ETH had the opportunity to join the verifier team without any intermediary, such as a pledge entity or exchange.

With the highly anticipated launch of Ethereum 2.0 Phase 1, it is expected that someone will scam users into storing ETH in a fake address. For this reason, we recommend that they use trusted sources such as the Ethereum Foundation, Etherscan, and Talsys check addresses.

The costs and risks of Staking

Getting rewarded for doing Eth2.0 Staking is not a free lunch. In addition to the possibility that the verifier may be penalized, there are many things that users need to consider before becoming a verifier (a pledge). Here are some of the factors that every verifier should weigh when considering whether Staking is "worth it" :

(1) & have spent Calculate the cost

The user needs to run the validator client at least, and probably 1 beacon node. Roughly, the annual cost of running the beacon node is $120, and the annual cost of running the verifier client is $60.

The user must obtain the necessary 32 ETH, either by purchase or by mining;

When the ETH is pledged, the mortgagor cannot directly sell the pledged ETH;

If the pledger wants to draw money & NBSP; (exits from the system), the system sets a waiting time. But according to the latest version of the Eth2.0 specification, this wait time has been greatly reduced.

(2) & have spent Risk of code

Users also need to consider the code risks associated with Staking. This risk will attract more attention in the early stages of Staking and may dissipate over time. It is important that we distinguish between "client code risk" and "consensus code risk." If there is a consensus code risk in the network, it can be solved by hard fork of the network. However, client-side code is more risky because it is difficult to distinguish it from malicious behavior.

(3) & have spent Total uptime and maintenance costs

The user needs to ensure that the verifier node does not go down or the pledge may be reduced. If a user runs multiple validator clients, then maintenance costs and infrastructure concerns are even greater.

(4) & have spent Safety risk

In addition to the client code risks, the mortgagor also needs to provide a secure verifier client operating environment (including securing Internet connections, operating systems, hardware, etc.). If the validator client is attacked due to a security failure that causes the client to go down and/or misbehave, there is currently no way to recover the funds.

The risk is similar to the THEFT of the ETH from your wallet as a result of an attack on your computer or phone. With decentralisation comes autonomy, but also self-responsibility.

A safe haven for lazy validators

All pledders in ethereum 2.0 blockchain are supposed to keep their devices (high performance computers) online for most of the validation period. Those who fail to keep up with the network may be punished and prevented from participating in the next phase of the event.

The minimum running time for Ethereum 2.0 verifiers can be reduced to 60%, and Vitalik Buterin claims that it has "lenient" punishment rules. As a result, ETH2& NBSP; compared to other PoS systems, which are highly demanding and have high uptime, Staking may be a lot more comfortable for beginners.

Write in the last

For the average user who wants to directly participate in Eth2.0 Staking means not only holding and pledging at least 32 ETH, but also knowing about how to run beacon nodes and validator clients, measuring the cost requirements and risks of participating in Staking, and so on. At the same time, some third-party service providers for Eth2.0 Staking will also provide participating services for ordinary users, so that users do not need to run beacon node and verifier client by themselves. Of course, users need to pay certain fees, but there are also corresponding centralization risks. In short, being a verifier in Ethereum 2.0 in 2020 is something worth trying.