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Validator Security - Securing the Cosmos.md

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Validator Security - Video: Securing the Cosmos - Ron Stoner Validators

  • Block Reward in proportioin to stake
  • Transaction Fees
  • More Stake == more power
  • Governance

Benefits to running a validator

  • Pretty cheap to do!

Validator Networks:

  • Cosmos
  • Kava
  • Polkadot
  • Microtick

Cosmos - "The internet of block-chains"

Cosmos ATOM

Staking w/a validator

Why should I risk my $$$

  • Block rewards - inflation on native tokens incentivize holders to bond their stake as non-bonded stake will be diluted over time
  • In Aug 2020, Cosmos ATOM had a 7% inflation, and staked coins received 9.7% return
  • Transaction Feeds: Bonus on the fees of the proposed block

Slashing

  • Slashing is a violation to the network and consensus layer
  • Jeopardizes the safety of other participants
  • Financial incentive to "play nice"

Slashing Events

  • Downtime - If you miss 95% of the last 10,000 blocks, then you get slashed

Double Sign

  • Private key from a validator was used to sign two transactions...
  • When that was detected, the validator was jailed.

Best Practices for Staking with a Validator

  • Who do you trust with your money?
  • Diversify (3 or more)
  • Look at their uptime history
  • Jail occurances?
  • Redundant setup?
  • Team profile and communication?