🔲Proof of Stake thread.
After the proof of work thread, the proof of stake thread is a must.
This is the new consensus that will be used by Ethereum.
Many concepts will require a dedicated thread in the future
↓
After the proof of work thread, the proof of stake thread is a must.
This is the new consensus that will be used by Ethereum.
Many concepts will require a dedicated thread in the future
↓
Table of Contents:
- What is Proof of Stake (POS)
- POS & Validators
- Attesting
- Sharded Chains
- Beacon chain
- How validation will work
- Committee
- Epoch
- Crosslink
- Finality
- Security
- POS Pros
- POS Cons
- What is Proof of Stake (POS)
- POS & Validators
- Attesting
- Sharded Chains
- Beacon chain
- How validation will work
- Committee
- Epoch
- Crosslink
- Finality
- Security
- POS Pros
- POS Cons
What is Proof of Stake (POS)
Users stake their ETH to become VALIDATORS.
Validators responsibilities:
- ordering transactions
- creating new blocks
Improvements:
✅more energy efficiency
✅reduced HW requirements
✅more centralization immunity
✅more nodes
✅shard chains
Users stake their ETH to become VALIDATORS.
Validators responsibilities:
- ordering transactions
- creating new blocks
Improvements:
✅more energy efficiency
✅reduced HW requirements
✅more centralization immunity
✅more nodes
✅shard chains
POS & Validators
POS activates validators upon receipt of enough stake (32 ETH).
Validators are randomly chosen to create blocks
They are responsible for checking & confirming blocks they don't create.
Users' stakes are used to incentivize good validator behavior.
POS activates validators upon receipt of enough stake (32 ETH).
Validators are randomly chosen to create blocks
They are responsible for checking & confirming blocks they don't create.
Users' stakes are used to incentivize good validator behavior.
Attesting
This validation is known as ATTESTING ("this block looks good to me").
Validators:
- don't use much computational power
- create and validate blocks
- get rewards for proposing new blocks & for attesting
⚠You attest to malicious blocks => you lose the stake.
This validation is known as ATTESTING ("this block looks good to me").
Validators:
- don't use much computational power
- create and validate blocks
- get rewards for proposing new blocks & for attesting
⚠You attest to malicious blocks => you lose the stake.
Sharded Chains
They are new separate blockchains.
They will need validators to process transactions & create blocks.
They will have a shared understanding of the state.
They will be managed by the beacon chain.
They are new separate blockchains.
They will need validators to process transactions & create blocks.
They will have a shared understanding of the state.
They will be managed by the beacon chain.
Beacon chain
The beacon chain will coordinate the sharded chains
The beacon chain will:
- receive state info from shards
- sync network state
- manage validators
The beacon chain will coordinate the sharded chains
The beacon chain will:
- receive state info from shards
- sync network state
- manage validators
How validation will work
When you will submit a transaction on a shard, a validator will be responsible for adding your transaction to a shard block.
Validators will be chosen by the beacon chain to propose new blocks.
When you will submit a transaction on a shard, a validator will be responsible for adding your transaction to a shard block.
Validators will be chosen by the beacon chain to propose new blocks.
Committee
The attestation (not the transaction) is recorded in the beacon chain.
Committee:
- 128+ validators are required to attest to each shard block.
- has a time frame ("Slot") in which to propose and validate a shard block.
The attestation (not the transaction) is recorded in the beacon chain.
Committee:
- 128+ validators are required to attest to each shard block.
- has a time frame ("Slot") in which to propose and validate a shard block.
Epoch
Only one valid block is created per slot.
There are 32 slots in an "epoch."
After each epoch, the committee is disbanded and reformed.
✅This helps keep shards safe from bad actors.
Only one valid block is created per slot.
There are 32 slots in an "epoch."
After each epoch, the committee is disbanded and reformed.
✅This helps keep shards safe from bad actors.
Crosslink
A crosslink confirms:
- the inclusion of the block
- the transaction in the beacon chain.
The crosslink is created once a new shard block proposal has enough attestations.
💰Once there's a crosslink, the validator gets the reward.
A crosslink confirms:
- the inclusion of the block
- the transaction in the beacon chain.
The crosslink is created once a new shard block proposal has enough attestations.
💰Once there's a crosslink, the validator gets the reward.
Finality
It's when a transaction is part of a block that can't change.
The block is finalized If 2/3 of the validators agree.
Validators lose their stake if they try and revert this later on (51% attack).
It's when a transaction is part of a block that can't change.
The block is finalized If 2/3 of the validators agree.
Validators lose their stake if they try and revert this later on (51% attack).
Security
51% attack still exists but it's even riskier: you need 51% of the staked ETH.
This is a lot of money, and it would cause ETH's value to drop.
The beacon chain will prevent bad behavior.
Validators will be responsible for flagging incidents.
51% attack still exists but it's even riskier: you need 51% of the staked ETH.
This is a lot of money, and it would cause ETH's value to drop.
The beacon chain will prevent bad behavior.
Validators will be responsible for flagging incidents.
POS Pros
✅easier to run a node. If you don't have enough ETH, you can join staking pools.
✅more decentralization.
✅increased participation
✅more nodes don't mean increased % returns
✅more throughput: Shard chains allows to create of multiple blocks at the same time
✅easier to run a node. If you don't have enough ETH, you can join staking pools.
✅more decentralization.
✅increased participation
✅more nodes don't mean increased % returns
✅more throughput: Shard chains allows to create of multiple blocks at the same time
POS Cons
❌Can tend toward centralization
❌POS is still in its infancy
❌Less battle-tested, compared to proof-of-work
❌May not be as secure as proof of work
❌Can tend toward centralization
❌POS is still in its infancy
❌Less battle-tested, compared to proof-of-work
❌May not be as secure as proof of work
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