How to become an Ethereum validator
Originally written: 15th of December 2020.
Ethereum is the second-largest growing cryptocurrency in the world.
Characterized by its goal to run also as applications (Decentralized apps Dapps) which makes it not only for money but a marketplace that hosts other financial and programmable services, Ethereum is taking over as one of the strongest cryptocurrencies in the market aside Bitcoin. Initially known to operate a decentralized blockchain technology, the Ethereum developers came up with a system that has although taken more than four years to implement, is finally here. The system is targeted at making transactions and other processes flow with ease while validators who are those that will now control to an extent the transaction process, can earn rewards or what can be described by some as passive funds. These can be earned when the validators carries out allotted roles effectively and smoothly.
Ethereum 2.0 has been lauded by many as a superb transition from ETH 1.0 where the transaction approval process was slower and lacking efficiency. It might not be considered as an exact transition as ETH 1.0 is still required to stake for ETH 2.0 but with this upgrade to a market that will be managed by Validators and Stakes, those with stakes of 32ETH and above can become validators, earn on the market and contribute to its speed and efficiency. Ethereum is upgrading from its proof-of-work mining and transaction processing mechanism, to proof-of-stake, thereby decentralizing the network and delegating transaction signing to validators. It will offer more scalability, speed, reduce electricity used in mining, reduce congestion and achieve its desire of operating a network for decentralized applications and finance (DeFi).
The switch from POW (Proof-of-work) to POS (Proff-ofStake) requires those who are to have stakes as basis of the later, to be conferred the title of validators.
The good thing is, anyone in the cryptomarket can now own stakes and become a validator. A Validator is a human running the computer process by virtue of consensus and ownership of stakes, operating software and recommended hardware. Validators are those who will control to an extent the speed of transactions by building new blocks and ensure the running of this cryptocurrency is void of bottlenecks or challenges.
Running through ETH1 as part of the process also connotes that the two versions of Ethereum will end up perpendicular when everything is set up and as such, users who have wallets on ETH1 need not worry as the upgrade will be practically unnoticed with their Ethereum intact.
All these details on Ethereum 2.0, Stacking and Validators are a preamble to the topical enquiry “how to become a validator”. Although the Staking process is similar to mining and will eventually replace mining in the Ethereum community in the long term as mining will invariably phase out due to the working of the new system, it will necessitate the deposit of 32ETH which can either be self staked (invested by one individual) or joint staked, a contribution with crypto exchanges and service providers.
Staking is a more effective way of maintaining the Ethereum network as discovered by its developers. Stacking is primarily the process of depositing the required amount of Ethereum to kick start the validator software. The process aids in data storage, crypto security, and does the one thing that has been analyzed to make this upgrade faster─ add new blocks to the networks blockchain.
The steps to becoming an Ethereum Validator are not necessarily complicated. They however have requirements of their own and it is advisable to follow most of the recommendations so you do not lose money or rewards along the way. They are listed below:
1. ETH Deposit: To become an Ethereum validator you will have to possess 32ETH either as an individual or jointly. This amount of ETH is the maximum you need to stake.
2. Hardware: This new system of blockchain is actually hardware intensive contrary to the opinion of many. Hardware has a pivotal role to play in the success of a person becoming a validator. Below are the recommended hardware and minimum hardware incase the recommended hardware is not available.
· Operating system: 64-bit Linux (OS-X and Windows can still be used. The minimum requirement for the operating system is still a 64-bit Linux, Windows or a MacBook. The aim is efficiency as you will need to have a system running smoothly and efficiently.
· Processor: Intel core i7─4770 or AMD FX-8310 or better. In a case where the recommended processor is not available, intel core i5─760 or AMD FX-8100 or a better processor can serve in its stead.
· Memory: 8GB RAM; minimally, 4GB RAM. Speed is necessary as that is one of the aims the new Ethereum system hopes to achieve. It is expected that more transactions will be taken up per second as opposed to the 30 transactions per second estimate of ETH 1 mainnet and for a validator to be on their top game, hardware with a high memory capacity is most suitable to use.
· Storage: 100GB SSD (solid-state drive) or the minimum of 20GB SSD. The storage capacity of the Hardware needs to be high and since SSD stores data using flash memory, it is the best storage device type recommended for Ethereum validation.
· Internet: your internet connectivity must not exactly be extremely fast but fast enough to be online constantly and run effectively. It is based on the internet requirement that a Broadband connection would be recommended.
3. Electricity: Previously, the mining of Ethereum and even Bitcoin was electricity intensive. Now things have changed slightly but the hardware and other related elements still require uninterrupted power supply. A UPS (Uninterrupted Power Supply) can guarantee this to a certain level but other precautionary measures can be put in place to avoid any electrical obstruction.
Electricity is necessary to power the Hardware and stay online consistently to avert the risks such as loss or slash of ETH, incurred by going offline.
4. Knowledge: To become a validator demands a good measure of substantial information and in-depth knowledge on the crypto market, Ethereum specifically, the blockchain system, analysis and other related topics. Due to the versatility of Ethereum and the crypto market generally, significant information helps the validator and informs choices, decisions and steps to take. An understanding of how to use and send ether, operate wallets and perform seamless transactions is necessary. If you do not have sufficient knowledge on staking but still want to stake anyway, you can utilize an already assembled validator node. It is also pertinent for potential Ethereum validators to bear in mind that the software used to run the validator accounts need to be up to date at all times software protection. The Hardware will also require maintenance and appropriate programming.
The research is never ending and it is safer to stay afloat the knowledge boat with up to date information.
5. Positive Mindset: Not everyone climbs aboard a new system hoping to get the best out of it, do not let those people to be you. The crypto currency market experiences its rise and fall many times, has its bottlenecks but a validator has control over his mind and just like the business requires a winning mindset, to become an Ethereum validator will require one.
With the intent of setting up the Validator account securely, Prysm (Prysmatic Labs) is currently one of the best platforms to use for Staking and to facilitate the validator process. They offer guided step by step procedures on how to run the Beacon node, complete efficiently the onboarding process, import validator accounts, run validator accounts, set up advanced wallets to be used for the staking and general guidelines on how to navigate the other ETH 2.0 validator processes. On their website they also have provision for mock staking which entails buying for free 32 mock eth and following the procedures to become a validator. The mock Staking is so people can experiment the Validator process without having to use actual Ether or losing funds in cases of eventualities.
Like every business and earning venture, Ethereum validation and staking has its risks. The risks are however minimized in such a way that they can only be incurred if some ground rules are flaunted or any sort of negligence occurs. With such huge risks which might in worst case scenario involve the loss or slash of stakes, comes the reward of earning and benefitting from the platform. Risks
Conclusively, if you are seeking to become an Ethereum validator, considering the projected rise of the cryptocurrency to over seven hundred dollars for 1ETH by mid 2021, now would be a great time to have a stake in order to be part of those who will not only benefit from its bloom, but earn more by virtue of its decentralized blockchain system. The Ethereum market is growing fast and early validators are said to make twice as more than those who stake later on making the top earners those who invest their stakes times and carry out transactions seamlessly.
