SafeStake

<h2 id="header-0">How Proposer Block Separation (PBS) and Safestake can help Ethereum further decentralize.</h2><p>Proposer Block Separation (PBS) and Safestake both aim to address concerns surrounding centralization in the Ethereum ecosystem by promoting more distributed networks of validators.</p><p>Decentralization is one of the founding key concepts in the blockchain and cryptocurrency world. But, what does it mean when someone talks about a blockchain being centralized or decentralized? Here, decentralization refers to how power is distributed and controlled by different actors on the network, rather than being controlled by a single entity, group, company, or organization.</p><p>So, why is decentralization preferred over centralization? In the case of Ethereum, decentralization is particularly important because it helps to ensure the security and resilience of the network. It also helps promote trust and transparency.</p><p>Recently, there have been a number of red flags raised about Ethereum becoming too centralized. In the rest of this article, we’ll explore two proposed solutions to help mitigate these centralization concerns: Proposer Block Separation (PBS) and Safestake’s non-custodial DVT (Distributed Validator Technology) staking service.</p><h2 id="header-1">Proposer Block Separation (PBS): Promoting increased decentralization for Ethereum</h2><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/ef1d88e17bfb4157b3247b7910fab301.png" /><p>One of the primary centralization concerns for the Ethereum ecosystem is the current concentration of power that belongs to a relatively small group of validators. The Proof of Stake (PoS) consensus algorithm Ethereum uses chooses validators at random based on the amount of cryptocurrency they hold and are willing to put at “stake” as collateral (staking).</p><p>This effectively means that validators with more resources are more likely to be chosen to perform validation duties, and therefore, have undue influence over the network, and one of the situations that have led to concerns is that the network is becoming too centralized. This type of centralization can lead to a number of issues like reduced security, increased censorship, and lack of network transparency.</p><h2 id="header-2">What is PBS?</h2><p>Proposer Block Separation (PBS) aims to promote a more decentralized Ethereum network. PBS separates the roles of block proposer from block validator, eliminating the current advantages some block proposers are able to realize by getting their blocks included first on the chain.</p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/536e03c7f7f64085a1cf93e3c8c5fde6.png" /><h2 id="header-3">How and Why?</h2><p>In Ethereum’s current consensus algorithm, the block proposer is also responsible for validating the block, which means that they have an advantage in terms of getting their blocks included in the blockchain.</p><p>PBS would work by randomly selecting a block proposer and a different block validator for each block rather than having the same individual or group perform both. This would theoretically result in a more diverse group of validators and reduce the potential for a single individual, group, organization, or company to gain an unfair share of control over the network.</p><p>Additionally, PBS would reduce the chances of a 51% attack where a single group of validators control more than 51% of the network and can control the consensus outcome. By separating the role of proposer and validator, PBS would allow for a more equitable distribution of power among validators.</p><h2 id="header-4">SafeStake: A trust-minimized middle layer fostering decentralized ETH 2.0 staking</h2><p>Here at ParaState, we are working on another solution to promote the further decentralization of Ethereum: Safestake. Safestake is a new protocol that aims to incentivize individuals and organizations to run validator nodes on the Ethereum network, providing them with a robust, secure, and highly decentralized turnkey solution.</p><p>In essence, SafeStake is a trust-minimized middle layer for secure, fault-tolerant, decentralized ETH staking.</p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/eaf534385ad74ac58f160f5f161c253d.png" /><p>SafeStake is also about accessibility, providing a way for individuals and organizations to earn a return on their investment, even if they don’t have the full 32 ETH required to run an Ethereum validator. More people running more validator nodes will help to decentralize it.</p><p>We will achieve this by providing rewards for participating in the network in good faith and by penalizing malicious behavior. This trust-minimized middle layer is designed to make Ethereum more resilient to malicious attacks.</p><p>SafeStake will maximize staker rewards by keeping validators secure and online to perform Ethereum Proof-of-Stake consensus (ETH2) duties. Instead of running validators on single nodes (single point of failure), SafeStake divides a validator key into shares and distributes them to several nodes managed by independent operators. This results in a highly secure and fault-tolerant environment.</p><p>SafeStake is designed to expand and diversify the Ethereum validator base, improving both decentralization and security.</p><p>SafeStake is also one of the first protocols to implement Distributed Validator Technology (DVT) for ETH2 Staking, giving power back to users in a decentralized environment.</p><p>By now you’ve figured out that the core focus of SafeStake is to make ETH staking more accessible, secure, reliable, and decentralized. As part of this plan, we will lower the minimum threshold required to participate from 32 ETH to 8 ETH (Stage 2), and eventually as low as 0.1 ETH (Stage 3).</p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/02d62d84ca984d88b524d62e5fb5c05b.png" /><p>Powered by the ParaState team and maintained by the decentralized ParaState DAO, SafeStake is a non-custodial staking solution with a decentralized spirit at its core.</p><p>The protocol encourages the use of its decentralized framework by offering Staking as a Service (SaaS) for different users and entities interested in earning ETH2 Staking rewards.</p><h2 id="header-5">Proposer Block Separation (PBS) SafeStake: Common Objectives</h2><p>One of the key similarities between PBS and SafeStake is that both aim to promote a more distributed network of validators. With PBS, this is achieved by separating the role of block proposer from the role of block validator, while with Safestake, it is achieved by providing incentives for individuals and organizations to run validator nodes on our decentralized network. Both of these solutions hope to make Ethereum more decentralized, secure, and resilient.</p><p>Another way the two are similar is that they both address the issue of concentration of power among a small group of validators. PBS works to promote a larger pool of validators, while SafeStake incentivizes more individuals and organizations to participate in the network.</p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/b86e4e39fd364bbd813996afd580f6f6.png" /><p>SafeStake is still in the research, development, and testing phase with an incentivized testnet called Galileo. PBS is still a proposed solution and has not yet been implemented. However, they are both promising solutions to Ethereuym centralization concerns and have the potential to help make the network more secure and resilient for all users.</p><h2 id="header-6">Conclusion</h2><p>To recap, decentralization is a critical aspect of the Ethereum ecosystem and is essential for the long-term success of the network. However, a number of centralization concerns have been raised in recent years by both proponents and detractors. Proposed solutions such as PBS are part of the efforts by the Ethereum Foundation team to keep the network secure and decentralized.</p><p>In line with their efforts, SafeStake is one of the first non-custodial protocols for decentralized ETH staking that maximizes rewards for network participants through DVT technology. Working together, we can all help decentralize the Ethereum network by expanding its base of validators.</p>

The Centralization Woes of Ethereum

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SafeStake

Інші статті, опубліковані 14 лют. 2023 р.

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