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ETH Home Staking Collection
DVT Home Staking Curriculum
DVT Home Staking Curriculum
  • The DVT Home Staking Curriculum
  • Curriculum breakdown & timeline
  • Understanding ETH validators
    • Introduction to ETH Validators
    • Roles & Responsibilities of a node operator
    • Rewards and penalties
    • Importance of client diversity
    • Distributed Validator Technologies (DVTs)
    • Economics of using DVTs (WIP)
      • Diva Staking (WIP)
      • Obol (WIP)
      • SSV (WIP)
    • Bonded Validators
    • Economics of bonded validators (WIP)
  • Hardware & systems setup
    • Setup Overview
    • Hardware & system requirements
    • Procuring your hardware
    • Assemble your hardware
    • Practicing for free on Cloud VMs
      • Google Cloud
      • Alibaba Cloud
  • Linux OS, Networking, & Security
    • Install and prepare the OS
    • Networking & network security
    • Device level security setup
    • Verifying checksums
  • Installing & configuring your EL+CL clients
    • Set up and configure execution layer client
      • Nethermind
      • Besu
      • Geth
      • Erigon
      • Reth
    • Set up and configure consensus layer client
      • Teku BN
      • Nimbus BN
      • Lodestar BN
      • Lighthouse BN
      • Prysm BN
  • Keystore generation & MEV-Boost
    • Validator key generation
    • Set up and configure MEV-boost
  • Native Solo Staking Setup
    • Validator client setup
      • Teku VC
      • Nimbus VC
      • Lodestar VC
      • Lighthouse VC
      • Prysm VC
    • Depositing 32 ETH into your validator
    • Exiting your validator
  • Monitoring, Maintenance, and Updates
    • Set up monitoring suite
      • Installing & configuring Prometheus
      • Installing & configuring Node Exporter
      • Installing & configuring Grafana
      • Beaconcha.in App API
      • Client Uptime Check
    • Maintenance & Updates
      • Nethermind
      • Besu
      • Teku
      • Nimbus
      • Lodestar
      • Updating the monitoring suite
      • Preparing for Pectra
  • DVT Setup
    • Diva Staking
      • Diva Staking client setup
        • Default - All-in-one setup
        • Advanced - with standalone Lodestar VC
      • Registering your Diva node
      • Updating your Diva client
      • Monitoring your Diva Node
    • Obol
      • Techne Bronze Speedrun (Launchpad)
      • Obol + Bonded Validators (Techne Silver)
        • Obol + Lido CSM
    • SSV
      • SSV + Lido CSM (WIP)
      • SSV Operator
      • SSV Staker
  • Bonded Validators Setup
    • Lido CSM
      • Generating CSM keystores
      • Set Fee Recipient Address
        • Method 1: Configure on validator keys
        • Method 2: Configure on separate validator client
        • Verifying Fee Recipient Registered on MEV Relays
      • Upload/Remove/View validator keys
      • Rewards & bonds
      • Exiting CSM validators
        • "Lazy" exits (TESTNET ONLY)
        • Proper Exits
      • Role/Address management
      • Monitoring
      • Automations
        • CSM with ETHPillar
        • CSM with ETH Docker
        • CSM with Dappnode
    • Puffer
      • Non-Enclave: 2 ETH
    • Ether.fi
      • Receive distributed validator keyshares
    • Stader (WIP)
    • Rocketpool (WIP)
  • Liquid Staking Vaults
    • Stakewise V3
  • Mainnet
    • Mainnet Deployment
    • Heroglpyhs (WIP)
  • Best practices
    • Slashing prevention
    • Maximising uptime and performance
    • Optimising security
    • Managing your withdrawal wallet
  • Tips
    • Advanced networking
    • Downloading files from your node
  • Useful resources
    • General resources
    • Holesky Faucets
  • Automation/tools
    • ETHPillar
    • ETH Docker
    • Automated power on/off
      • Wake-on-LAN (WoL)
      • Network UPS Tools (NUT)
    • Validator Healthcheck Alerts
  • Solo Stakers Guild
    • Lido CSM+SSV+Obol (Testnet)
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On this page
  • What do validator nodes actually do?
  • The responsibilities
  • The skillsets required
  1. Understanding ETH validators

Roles & Responsibilities of a node operator

PreviousIntroduction to ETH ValidatorsNextRewards and penalties

Last updated 11 months ago

What do validator nodes actually do?

In short, validator nodes on the Ethereum network process transactions and secure the network. This is done via the consensus mechanism where each validator puts 32 ETH at stake to vouch for the validity of new blocks - with a bundle of transactions in them - that either others or themselves have created.

In exchange for doing the work above, validators receive rewards from both users and the Ethereum protocol directly. However, if validators are caught acting dishonestly by other nodes in the network, their stake is slashed - forcibly burning their 32 ETH based on the severity of their actions. This mechanism is further explained in the .

To understand this process in more detail, let's walk through the value chain of the ETH validator network.

  1. In most cases, when users interact with Dapps built on top of the Ethereum network or directly sends Ethereum assets to one another, their transaction will first be sent into a holding area called the Mempool

  2. Block Builders retrieve transactions via 3 channels to bundle into a block before pushing it to the upcoming block proposers via Relays.

    • Observing the Mempool directly

    • Working with MEV searchers: These are another group of users that observe the Mempool for arbitrage opportunities. When they find such opportunities, they insert their own transaction and submit the arbitrage transactions set to the block builders

    • Working directly with users who want to send their transactions directly to block builders

  3. The Relays connect to the Consensus Clients of the validator network via the mev-boost public auction service to allow validators to accept the highest bids (MEV fees)

  4. The validator network picks up transactions in 2 ways:

    1. From the Mempool directly via the Execution Clients. Transactions received this way are built into blocks locally.

    2. From the Relays via the mev-boost public auction. Transactions received this way are pre-built into blocks by the block builders.

  5. Every epoch (6.4 minutes), 32 validators are chosen randomly serve as block proposers, each proposing a block in their assigned ~12-second slots.

  6. This block proposer has ~4 seconds to receive, execute, and send the block back out

  7. A committee of validators (the Beacon Committee) is chosen at random to determine the validity of this new block within the remaining ~8 seconds

  8. Once the new block is proposed and sufficiently attested to, it is added to the blockchain

  9. At the end of every 2 epochs, all prior transactions are finalised and can no longer be reversed without burning a large portion of staked ETH across the whole network

The responsibilities

Running an ETH validator node is a long term commitment. Your staked ETH will not be liquid while it is being staked and there will be lead time on both entering and exiting the validator queue.

Once your validator is activated, you have to be keep it running 24/7 and there will be penalties for inactivity / going offline.

This means that you have to invest in adequate hardware, a suitable space / environment to run your validator node from, and time to monitor / maintain / troubleshoot your node periodically.

You will also need to keep up to date with the latest developments across your execution and consensus client software as well as the overall Ethereum consensus mechanism.

The skillsets required

proof-of-stake
Rewards and penalties sub-section
It's not a walk in the park but it's definitely easy enough for even non-technical people to pick up!
Source:
https://github.com/flashbots/mev-boost