Is Ethereum 2.0 stable?

Sajjad Hussain
Nov 6 · 4 min read

In the early morning of November 5th, VITALIK tweeted that the current ETH2 pledge contract has been opened. If all goes well, Ethereum 2.0 is expected to start the genesis block on December 1st.

Image for post
Image for post

Creation block trigger condition is December 1st 7 days, the birth of at least 16384 Ming verifier, each verifier pledged 32 ETH, the deposit contract that is at least 524,288 pieces of ETH; if the threshold is not reached, the The founding block is generated 7 days after reaching.

According to data from the OKLink Ethereum , the deposit balance of the contract address has reached 19,685 ETH.

Ethereum developer ConsenSys reminded, “Do not send any tokens directly to the contract. Sending ETH directly to the contract address will cause the transaction to fail. This does not mean that you are using Ethereum 2.0. To participate in Ethereum 2.0 Internet, you need to use a dedicated Launchpad and follow the instructions, or join a service provider.”

The ETH2 pledge contract address is:

0x00000000219ab540356cbb839cbe05303d7705fa

It is worth noting that currently Eth2.0 only has a deposit function and does not support transfers. After Ethereum 2.0 reaches the first stage, verification talents may transfer money, and asset withdrawal needs to wait until the second stage, and the entire development process may take 2 years. In other words, participating in Eth2.0 pledge now is a long-term optimistic long-term investment, with risks and rewards coexisting, and you need to choose carefully. These validators can get additional rewards for the entire network during and after this period, and the annualized income is expected to exceed 20%. With the increase of validators, the rate of return will eventually drop to 4.6%.

Participates in endoplasmic charge, need to know the road to do

The realization of ETH2.0 needs to be divided into multiple stages. The most important are the first three stages: stage 0, stage 1, and stage 2.

(ETH2.0 roadmap, no fixed timetable)

Phase 0 introduces the Beacon Chain as the “command and control” center of the entire Ethereum 2.0 network; Phase 1 introduces shard chains, allowing data to be stored on these shard chains but not on the shard chain Processing transactions; Phase 2 introduces a sharding virtual machine, allowing transactions to be processed on the sharding chain.

Since the beacon chain of stage 0 will run the POS protocol Casper, it is regarded as the starting point of Ethereum’s new journey into POS.

(1) 32 ETH is the lowest threshold

Phase 0 Accept users to pledge ETH to become a beacon chain verifier and obtain pledge income. The minimum threshold for user pledge is 32 ETH. After ETH is transferred to the beacon chain, it is converted into BETH 1:1, that is, 32 BETH becomes a verifier.

If the user has 64 BETH, two validators must be run, and so on. This is to avoid over-concentration of verification power and to ensure the equality of power and status of each verifier.

In addition, currently only supports switching from ETH1.0 to ETH2.0, and does not support reverse operations. ETH is destroyed to generate BETH after being transferred to the ETH2.0 deposit contract, and BETH cannot be reversely restored to ETH.

(2) Responsibilities and rewards of verifiers

In Phase 0 and Phase 1, decentralized delegation cannot be achieved, and ETH holders cannot pledge ETH to nodes for mining.

Becoming a validator, while taking responsibility, you can also reap rewards.

Income:

Proof Rewards: Verifiers are rewarded by making proofs that most other verifiers agree (LMD-GHOST and Casper FFG voting), and the value of the proof in the finalized block is higher. In Phase 1 of ETH2.0, validators will also receive cross-link rewards.

Proposer reward: The proponent who finalizes the block is rewarded. Verifiers who have always been online to maintain excellent work have increased their total rewards by approximately 1/8 when proposing blocks with new proofs.

Whistleblower rewards: The whistleblower is rewarded by highlighting verifiers who have committed serious crimes. In ETH2.0 stage 0, all the rewards of the whistleblower are actually given to the collective proposer.

Expenditure:

The computational cost of the beacon node and validator client is roughly estimated at $120 per year.

Provator penalty: Verifiers are punished for unproved or uncompleted blocks.

Inactivity penalty: Inactivity penalty is one of the methods that ETH2.0 is designed to avoid the doomsday crisis. If more than 1/3 of the verifiers are eliminated, offline verifiers will find that their balance is reduced to the point that they cannot participate in verification again.

Serious violations: The ETH2 protocol includes a mechanism called slashing, which is used to punish verifiers who submit malicious data to the network. The penalties range from 0.5 ETH or more to the entire amount of the verifier. The protocol also imposes additional penalties based on how many other validators are cut at the same time. For example, if one-third of the validators commit a serious crime in the same time, they will lose their entire balance .

(3) Withdrawal needs to be cautious

If the user does not want to participate in the verification, they can also opt out. Verifiers can also “voluntarily withdraw” after serving 2048 epochs (equal to 9 days); the pledge deposit of honest verifiers (32 BETH) will be refunded within 27 hours; if the number of beacon chain verifiers is greatly reduced, the highest possible This resulted in a network delay of 8192 epochs (about 36 days).

If the user has voluntarily quit, or is forced to quit because of being fined, he will not be able to rejoin. This means that if you want to become a validator again, you will need to pledge 32 ETH and a new validator account.

Crypto Pundit

Missing Crypto news

Medium is an open platform where 170 million readers come to find insightful and dynamic thinking. Here, expert and undiscovered voices alike dive into the heart of any topic and bring new ideas to the surface. Learn more

Follow the writers, publications, and topics that matter to you, and you’ll see them on your homepage and in your inbox. Explore

If you have a story to tell, knowledge to share, or a perspective to offer — welcome home. It’s easy and free to post your thinking on any topic. Write on Medium

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store