Participate in Ethereum staking at a small cost of “home”? Take a peek at this beginner’s guide

Welcome to Proof of Stake Ethereum, where anyone can become a blockchain validator.

The merger greatly lowers the threshold for ordinary people to participate in securing Ethereum. You don’t need to spend thousands (or millions) on hardware and energy costs, all you need is a laptop and some ETH.

Stake From Home, while the liquid staking protocol provides a more accessible solution for those who don’t meet the 32 ETH threshold, running your own node validators helps keep the network decentralized and censorship-resistant.

Currently, you have three main options:

  • Plug and Play solution ( dAppNode and Avado)
  • Independent Staking (DIY Hardware)
  • Rocket Pool operator

All of the above have pros and cons, interested in getting started and getting some rewards? Here’s how anyone can become an ETH validator.

  • Goal: Run an Eth PoS validator
  • Skills: Intermediate to Advanced
  • Duration required: 2 hours to start research
  • ROI: 4.79% ETH reward for DIY verification

We want you to be an ETH validator

“Services provided by centralized providers may reduce the overall decentralization of the network and cause your deposits to become less valuable over time. I strongly encourage each participant to use the most decentralized way possible Staking, even if it means learning new skills to make it happen.” –Superphiz, April 2022

Last week, Ethereum completed the transition from proof-of-work (PoW) mining to PoS staking.

This means that Ethereum’s consensus process has been virtualized and put into the hands of ETH holders. Now, the Ethereum network no longer needs to run major physical mining operations to win PoW blocks, but is secured by users who hold ETH and back it with collateral rather than cheating the network.

In this shift, the great hope is that Ethereum can further decentralize by welcoming more participants to this consensus process by staking, as running large physical mining for PoW is really only accessible to those who have access and control Feasible for people with a lot of physical resources.

Therefore, this guide will show you how to participate in ETH staking as a regular Ethereum user, starting with a plug-and-play node solution.

But first, let’s briefly touch on the importance of customer diversity!

Why Customer Diversity Matters

Client software determines how the node operates.

Attacks can destabilize a blockchain network when most nodes run on the same client. In a nutshell, this explains why running a diverse clientele is important.

Participate in Ethereum staking at a small cost of "home"? Take a peek at this beginner's guide

Image via clientdiversity.org

After the merger, Ethereum validators must run two kinds of clients simultaneously: an execution client that handles the Ethereum Virtual Machine (EVM), and a consensus client that facilitates PoS consensus.

As can be seen from the image above, Ethereum validators have a variety of execution and consensus client combinations to choose from, and it is important that no single client or combination of clients becomes overweight, as explained by clientdiversity.org That way:

“Many people know that client diversity is important for a more resilient network, but they don’t understand why or how. It’s not just important, it’s critical. If 2/3 (66%) of validators use a single client , there is a very real risk that this could result in chain outages and monetary losses for node operators.

It takes 2/3 of the validators to reach finality. If a client with 66%+ market share has a bug and forks to its own chain, it will be able to complete. Once the fork is complete, validators will not be able to return to the real chain without being slashed. If 66% of the chain is slashed at the same time, the penalty is the entire 32 ETH.

So why is >50% market share still dangerous? If minority clients fork, 50%+ majority clients get 66%+ majority. These situations can be avoided since no customer has a market share of more than 33%. That’s why <33% market share is the goal for all clients.

Executive clients are not immune either. The above risks apply equally to consensus clients and execution clients. “

Tips?

When setting up your Ethereum validator, it is highly recommended to use a small number of clients like Teku and Besu to make Ethereum as resilient as possible, as doing so will maximize the decentralization of Ethereum.

Now, let’s dive into which validators are the most friendly to the average staker.

1. Plug and Play Hardware

In November 2020, Bankless released a guide for running ETH validators. guess what? The advice in that article is true today: Dappnode and AVADO are still the top plug-and-play Eth validator solutions.

Let’s do a quick refresher here!

Dappnode

Difficulty: Beginner

Cost: $$$

Dappnode provides hardware + software tools so that ordinary people can easily run their own blockchain nodes. As a result, Dappnode’s devices have become a very popular grassroots solution for running Ethereum validators.

Participate in Ethereum staking at a small cost of "home"? Take a peek at this beginner's guide

The beauty of Dappnode devices is that they make ETH staking very easy for non-technical users. You plug in the hardware and the system simply walks you through all the steps required to start your own validator from 0 to 100.

  • You will need: 32 ETH for deposit + keystore generated to securely store your validator private key
  • Getting Started Tutorial: Installing a Client from Scratch Using DappNode
  • Natively supported clients: Teku, Lighthouse, Prysm (Lodestar and Nimbus support coming soon)
  • Pricing: The basic Dappnode Home i716 starts at €1,562.90 per unit

AVADO

Difficulty: Beginner

Cost: $$$

After starting out as a fork of Dappnode in 2018, AVADO has made progress in development and is going all out to simplify the “run your own node” process for Ethereum PoS and other blockchains.

Participate in Ethereum staking at a small cost of "home"? Take a peek at this beginner's guide

Plug in your AVADO device, follow the launcher prompts, and with just a few clicks, you can easily stake ETH at home!

  • You will need: 32 ETH for deposit
  • Getting Started Tutorial: Setting Up a Teku Authenticator; Setting Up a Prysm Authenticator
  • Natively supported clients: Teku, Prysm
  • Pricing: Basic AVADO i7 units start at $1,600 each

2. Independent staking with DIY hardware

Difficulty: Intermediate/Advanced

Cost: $

Are you interested in becoming a validator on Ethereum, but would rather repurpose existing hardware, such as a recently replaced computer, than use a plug-and-play node?

This path is of course more challenging. But you’re in luck, as there are tons of resources available to help you through the Home Mortgage process with ease!

Before you start, though, understand the basic requirements.

According to an April 2022 Reddit post by Superphiz, DIY indie stakers will need to:

  • Above-average technical ability
  • at least 32 ETH
  • Hardware capable of running 24/7
  • Internet connection of at least 10Mbps

That said, in addition to meeting these basic requirements, you are free to customize your standalone staking setup to your liking.

Whether you want to use a $100 Raspberry Pi 4 or a $1,000 Intel NUC, you can.

For some inspiration, check out some great DIY standalone staking setups we’ve seen in the Ethereum community recently:

image.png

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If you’re starting to explore DIY independent staking options more seriously, you should check out some community resources, including:

  • Ethereum Launchpad — a one-stop information center with all the information and resources you need to become an Ethereum validator
  • EthStaker – A community and resource compilation for all things Ethereum staking
  • CoinCashew’s Guide to Ethereum Validators — A wiki-like hub covering how to start, maintain, and generally simplify your Ethereum staking operations
  • Somer Esat’s Guide to Ethereum Staking — A series of primers on how to set up different combinations of Ethereum staking clients

3. Rocket Pool minipool operator

Difficulty: Beginner

Cost: $$

Rocket Pool is a decentralized Ethereum staking protocol.

Notably, with a minimum 0.01 ETH staking, Rocket Pool allows anyone to stake any amount of ETH by trading any amount of ETH they want, rETH is a tokenized staking derivative of the project that is created over time by Staking rewards provide passive income.

The protocol bundles the ETH deposited during the aforementioned rETH staking process into many 16 ETHs.

These are Rocket Pool node operators, and they run mini pools.

image.png

As Rocket Pool explains: “The mini pool takes your 16 ETH, 16 ETH from the rETH staking pool, and merges them together so it can send 32 ETH to the beacon chain deposit contract to create a new validator”.

Therefore, this mini pool system has great advantages. It lets you stake with as little as 17.6 ETH (16 ETH + 1.6 ETH of Rocket Pool’s RPL tokens for insurance), and it increases your RPL reward by allowing you to earn RPL rewards on top of ETH validator rewards income.

The minipool system is also powerful because it combines with the rETH staking pool process, so anyone can stake with as little as 0.01 ETH, increasing the decentralization of Ethereum.

Also, if you can afford to staking alone at home, you have everything you need to run a small mining pool.

As Superphiz points out, “Rocket Pool small pool operators are doing the same thing that individual stakers are doing.” “But they can do it with less ether and higher returns. “

So, if running a mini pool is the way you want it, be sure to check out these great resources to get started:

  • Why become a Rocket Pool node operator?
  • Node Operator Responsibilities
  • Create a new mini pool

Running your own Ethereum validator is the most influential thing you can do in the Ethereum community.

It helps secure the Ethereum network itself, ensuring that the blockchain continues to function for users around the world. Also, you can make Ethereum more resilient if you use a handful of clients in the process. For your services and efforts, as it stands, you can earn an APR (annualized rate of return) of nearly 5% in ETH staking rewards.

Become a “Guardian Knight” on the Ethereum chain, coupled with considerable on-chain revenue, what are you waiting for, join now!

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/participate-in-ethereum-staking-at-a-small-cost-of-home-take-a-peek-at-this-beginners-guide/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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