ETH2.0 will launch on December 1

Ethereum has officially confirmed that ETH2.0 will launch on December 1st!

Potential profit opportunities from ETH2.0

For individual participants, investors, there may be these opportunities:

  1. To become the verification node and obtain the revenue of POS.
  2. Investment opportunities in tokens for ETH2.0 third-party verification service providers.
  3. ETH2.0 concept project investment opportunity.

These directions are less speculative, but they are worth following in the long run.

Vitalik’s AMA on ETH2 POS

Vitalik staking answers designs like ETH2.0, staking, sharding, etc. Vitalik Buterin does an online AMA for the Chinese community of Ethereum enthusiasts.

Question 1: What does it take to become an Ethereum 2.0 node?

Vitalik: 32 ETH and regular PC should be enough.

Q2: What if the number of ETH exceeds 32? For example, how do you become a verifier if you have 320 ETH? Run in 10 nodes?

Vitalik: You can run just one Ethereum 2.0 client. Clients can manage multiple validator ids. But the more validator ids a client manages, the more data that client needs to validate. For example, if you pledge 10,000 ETH, you might need a server.

Question 3: The more data you need to store, the more times several verifiers vote for the same on-chain data.

Vitalik: This is the nature of sharding. Blocks in shards are allocated to verifier ids for voting, so if you have a lot of verifier ids, you need to validate and sign more blocks.

Q4: Should 10 verifier ids hold 10 private keys? Or can one private key manage 10 verifier ids with only one client?

Vitalik: Requires 10 private keys. However, a client can generate multiple private keys from one private key.

Otherwise, Eth2.0 staking should not contain a “delegate” otherwise, if it is not 32ETH enough, it cannot delegate in a decentralized manner to another node.

Vitalik: Ethereum 2.0 phase 2 implementation will allow delegation through the use of smart contracts.

Question 6: It means that after Phase 2, how many people can collect 32ETH through one contract and become one verifier together?

Vitalik: Yeah, right.

POS mechanism and revenue estimation for ETH2.0

Yesterday (November 24, 2020) ETH POS mechanism was officially launched, after which the miner’s profit will be calculated according to the online time of the validator and the amount of ETH pledge (one validator means 32 ETH pledge will take about 2 years).

Up to now, the total pledged amount of ETH2.0 is 710,000 ETH, and the annual return rate of the currency standard is estimated to be 18.1%. The real-time yield information can be viewed at eth2go.com. The progress bar of total pledge is still going, the target is 11 million ETH, the yield is 5% (much higher than the yield of 0.5% for ETH lending in DeFi).

Their main services include the following:

  1. Already configured hardware is sold and participants buy plug and play.
  2. Provide hosting services, participants only need to coin, do not need to maintain their own validators.
  3. One-stop validator configuration service.

At present, these third-party services have not substantially stable operation, but are in full iteration.

Create an ETH2 node

Friends with technical ability at this stage can build their own nodes first.

** Recommended options are: Geth/Infura + Prysm **

The tutorial says undefined penalties are like this:

  1. In addition to being penalized for being offline, validators can also be penalized for misconduct, such as proving invalid or contradictory blocks.
  2. How often are rewards/penalties posted? Every six and a half minutes or so, the network measures each verifier’s behavior and issues an appropriate reward or punishment.
  3. How big is the reward/penalty? The most extreme penalty scenario is that the verifier may lose up to 50% (16 ETH) of its shares over a period of 21 days. After 21 days, it is ejected from the validator pool.
  4. Overall, net profit can be achieved as long as the verifier’s uptime is greater than 50%, so the impact of going offline is not that severe

Regarding server security, two private keys are officially designed: the withdrawal private key and the signature key. The signature private key is placed on the hardware of the networked running node, and the withdrawal private key is placed offline. If the signature private key is stolen, the principal security will not be affected, and the verifier can always recalculate the signature key according to the withdrawal private key. If the withdrawal private key is stolen, it is more troublesome, meaning that the risk of loss of principal has been formed.

PS: Infura is used for convenience and does not need to synchronize eth1.0 block information by itself (the total number of Geth blocks synchronized is about 180G, so it is officially recommended to configure 200G hard disk hardware). However, due to the occurrence of Infura bugs in the past, it is hard to say that there will be no more disconnection events, and disconnection will be deducted benefits. I personally think it’s fine, but I recommend Geth.

ETH2GO: ETH2.0 Chinese service community

ETH2GO data service community

ETH2GO is a data service platform for the ETH2.0 ecosystem. At present, the POS data of ETH2 and messages from third-party service providers are mainly used. In the future, the latest information of ETH2 and newly released project information based on ETH2 will be gradually integrated to provide more auxiliary tools for miners and investors.

Eth2go.com summarizes the information of ETH2.0 third-party service providers that have released the information, and describes the costs and features of various services:

If you want to estimate the return of ETH2 mining, you can enter the amount of ETH you want to pledge in eth2go.com to get the estimated result:

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UBI. City – Regarding the future organizational structure of the agreement, we will be releasing more ideas and design mechanism of UBI. We welcome interested blockchain enthusiasts, community initiators, research analysts and Gavin, Iris to discuss the future possibilities of UBI.

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