AMA SUMMARY

(4 Dec 22)

If you missed our last AMA session with ParaState Core Team Members Dmytro and Chris, this article will bring you up-to-speed.

Get the latest news and info about SafeStake and the GalileoTestnet, the new reward system, DVT technology and more!

We kicked off our Twitter Space with Chris explaining the current status of the Galileo Testnet. We are currently in Stage 1 of testnet and will soon be introducing tokenomics. Our plan is to gather as many operators and validators to test into Q1 2021 and bring the first iteration of SafeStake to mainnet at the beginning of Q2. In the last week we doubled the number of active validators on our Galileo Testnet and look forward to continued growth!

Chris also went over the ETH prizes that active operators and validators will automatically be entered to win, based on achieving four milestones on the way to the target of 1,000 validators on Galileo Testnet!

Dmytro followed-up by reporting on our latest updates on the SafeStake project such as a new step-by-step video guide on how to set up a validator on testnet, interviews we are conducting with our SafeStake operators and FREE goerli ETH for anyone that wants to run a validator on testnet! If you are interested, please message us on Discord.

Our fans asked some remarkable questions and five lucky folks walked away with 20 USDT! However, everyone that submitted questions deserves recognition for such thoughtful queries. So let’s take a look!

Q: Security is one the most important topics for any project launch in the current market. What is ParaState doing on this aspect?

A: SafeStake is the first DVT (Distributed Validator Technology) ETH staking solution written in Rust, implementing HotStuff consensus and a threshold signing scheme to help securely manage the validator private key in a decentralized manner.

Security is always our priority. This can be defined in the genes of our tech stacks.

A good example of security: There’s no single point failure for Validators, since no single node is holding the whole private key. The staker selects four (4) different operator nodes when creating their validator, and the protocol splits their validator key into four (4) key shares. These operators form a committee that will fulfill validation tasks for the validator. Because the key shares are actually doing the work, the validator key can be stored offline in a safe location.

SafeStake also introduces the most robust BFT consensus protocol, HotStuff, to minimize slashing risks for validators on the network. Now, even if one operator node is malfunctioning, the other three (3) can still achieve consensus to propose blocks and fulfill tasks for the validator.

Q: How beneficial will it be for Ethereum owners to split (validators) into 8 Ethereum (instead of 32)?

A: It will be beneficial not only for Ethereum owners but to the whole ecosystem. In Stage 2 of testnet, SafeStake will lower the ETH 2.0 staking threshold to 8 ETH, instead of 32. This will make earning rewards via ETH staking more accessible to ETH HODLers everywhere. It will drive a more extensive validator base, improve diversity and decentralization, and strengthen the security of ETH 2.0 staking.

Q: What’s the difference between SafeStake and other stakes (staking services) and how will it specialize among others?

A: It is worth highlighting some fundamentally key characteristics with respect to other solutions, like Rocket Pool, SSV.Network, Obol and/or Lido Finance.

1. Unlike competitors, the minimum ETH holding amount for a validator of SafeStake is 8 ETH, which is lower than the 32 ETH supported by the SSV Network or 16 ETH supported by Rocket Pool.
2. Security. SafeStake solution will allow validators to split validation keys into multiple shares, which will be distributed to multiple operator nodes after it. Proposed solution will reduce security risk, since none of the validators can recover the validation key.
3. The code of SafeStake is written in Rust, which enables better performance for processing large amounts of data and other CPU intensive operations.
4. SafeStake guarantees consensus among validators using the HotStuff algorithm. It is more robust than algorithms applied by solutions like Obol or SSV.Network.

Q: What roles does the consensus algorithm HotStuff play for SafeStake? And why is this consensus better than iBFT? What benefits does it provide?

A: In an open P2p network like the SafeStake middle layer, the messaging and communication amongst the Operator nodes are complex especially when the validator delegation activities increase.

HotStuff is the first and most robust partially synchronized BFT protocol.

HotStuff performs much better than iBFT/qBFT to achieve efficient consensus amongst the operator committee nodes.

Q: Could you explain Distributed Validator Technology (DVT)? How does it work in SafeStake?. What is the difference between SafeStake validator and operator? What are the benefits for each?

A: Distributed Validator Technology (DVT) is a decentralized open-source protocol that allows the duties of a validator to be distributed among multiple nodes.

The user is required to stake ETH to become a validator. In SafeStake, a validation task will be performed by the operator nodes selected from the validators during the setup.

The VA process is very straightforward.

The operator will be the service provider holding validators’ validation key shares and providing professional ETH 2.0 staking duties for the validators.

OP gets rewards for his duties.

Q: In this very tough market, how will ParaState survive, are there any steps the dev and team will take to survive in this very bad market?

A: We are building. Currently we are working on stage 1 testnet for SafeStake, the second is not far away. We are getting ready to launch with SafeStake mainnet.

There are things which we could not affect, so we are concentrating on our work to launch high-quality solutions as soon as possible.

In the meaning I encourage you to join our testnet and to help us testing our solutions and to win rewards for it!

Q: Can you explain your Tokenomics Distribution? How many tokens will be minted? And How many tokens will be locked by the team?

A: Main use cases of STATE token:

1. Premise of operator registration on Safestake network.
2. Service fees validator paying to operator.
3. Governance and eco incentivizes.

Tokenomics

Operators have to maintain a minimal X STATE token balance for registration on the ParaState network.This X amount STATE is mainly used to cover the potential slashing penalty at the very beginning.

• Validators who staked 32eth need to pay 25STATE/month to each operator as service fee.
• Initializer who staked 8Eth and create the mini-pool still need to pay 100 STATEs/month to all 4 operators,

Moreover, All DAO governance protocol will be based on $STATE tokens only.

ParaState DAO will collect 10% protocol fee from Operator’s service fee; and 10% protocol fee from Validator’s yield as network security treasury. (fees collected on an epoch basis)”

We expect the implementation of SafeStake will drive huge demand for STATE tokens.

Q: What are the partnerships we have secured till date and out of which how many projects have adopted our products and number of projective clients which are in pipeline and what promoters think they are able to sell their product well as per their expectations?

A: https://explorer-testnet.safestake.xyz/

Check this out. The Galileo incentivized testnet already has more than 50 professional staking service providers joined, ie. InfStones, Stakely, RockX, Nodes Guru etc.

Q: About your NFTs, Can you explain further about the utilities of these NFTs within your platform? Will they have additional benefits?

A: Thanks for the question. Let me talk more about ParaState DAO and DAO NFT.

We can say that we could achieve full decentralization only when ParaState is governed by a decentralized autonomous organization (DAO).

ParaState DAO will build the network and will be responsible for the maintenance and governance of the staking network. ParaState DAO will cover both ParaState and SafeStake communities.

ParaState as a DAO plans to use STATE token as fuel for its internal economy, applying a model of the token economy configured as a DAO to allow everybody to earn more tokens for positively contributing to the development and expansion of the ecosystem.

Actual ParaState DAO members will consist of a group of validators, operators and STATE holders. It is planned to hold community meetings to discuss staking parameters, in example ranking of operators, fees, evaluation of current services, possible grants etc.

> D T: As it was already discussed, SafeStake will be under the governance of the ParaState DAO. Holding this NFT user is becoming a part of the governance process. Tribe of State NFT is the identity and badge to participate in the ParaState DAO. Using governance NFT users can participate in decisions making and voting on process management.

Q: Will there be any operator selection rating after the launch of the main SafeStake mainnet? Do I have to enter the percentage of reliability or the number of completed trades?

A: It’s too early for that. Currently we have testnet stage 1, where everybody could join, we are checking for performance of our Operators and testing our solutions.

But more information will be announced closer to the mainnet launch.

Q: At present, overall market conditions are so rough, how does your revenue model work? And What issues are you solving in the Crypto industry? What are your plans for 2023 and what’s the goal of this project?

A: Security — the validator key must be stored online.

Reliability — the validator key must remain online to earn rewards and avoid slashing.

Low Entry Barrier — only 8 ETH needed to stake instead of 32.

Knowing that validator uptime and security are critical to maximizing validator rewards and avoiding penalties, we developed an extremely reliable, secure staking solution from the ground up. We also believe Ethereum staking should be accessible to as many people as possible, offering one of the lowest entry barriers in the industry to stake and run a node.

SafeStake provides all of these key features:

• High Availability — Keeps validators online and available to perform duties.
• Strong Security — Splits the validator key into shares and distributes them to independent operator nodes. The key can be stored safely offline and our tech stack ensures no single operator or bad actor can recreate it.
• Accessibility — More ETH holders can participate.

Q: Could you please explain the operator’s role between SafeStake nodes and Beacon Nodes? Also, with this process how will the processing time be?

A: With the validator key being split into 4 shares and given to operators, their job is to recreate the validator key signature using the shares and send it to the Beacon Chain node to sign the data transaction, attest to blocks, and propose new blocks.

This is the end of the session. Join us on social media so you don’t miss the announcements of new AMA’s!

About ParaState

ParaState takes Ethereum chain support to the next level through WasmEdge, developing and executing high-speed smart contracts with built-in Ethereum compatibility (EVM and EWASM) and interoperability in next-level programming languages like Rust, C ++, and Golang.

Parastate is participating in ETH 2.0 PoS with a new tech stack called SafeStake, a trust-minimized middle layer that promotes decentralized ETH 2.0 staking. SafeStake is the first staking pool to implement distributed validator technology (DVT). It is written in Rust and uses HotStuff consensus and Threshold Signature architecture to provide robust security and reliability for validators securing the Ethereum network.

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