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Blox (CDT) is powering the decentralized ETH staking economy by making Eth2 staking accessible to all!



ABOUT BLOX
Blox is developing products and technology that help Ethereum stay fair and decentralized 🦾
Decentralized ETH staking refers to platforms that in no way retain control over it’s users ETH, private validator keys (https://www.bloxstaking.com/documents/eth2/#validator-keys) or private withdrawal keys (https://www.bloxstaking.com/documents/eth2/#withdrawal-key). Effectively providing a service that alleviates the technical and monetary barriers to entry for staking on Ethereum 2.0 (https://www.bloxstaking.com/documents/eth2/), without assuming custody over its users’ assets.


Why is this so important?

Custodial and semi-custodial staking raises security breach concerns should a hacker gain access to the service and access its user’s assets. Additionally, should the service inadvertently partake in a slashable event (https://www.bloxstaking.com/blog/ethereum-2-0/understanding-eth2-slashing-preventative-measures/), its users face steep penalties given that slashing penalties grow exponentially the more validator keys are involved in an event. The larger the centralized service, the larger the potential penalties.


Many Eth2 staking services claim to be non-custodial, yet maintain custody over one, or both private keys. Blox’s solution is entirely non-custodial, offering participants the chance to stake on Eth2 with the utmost privacy and security.

BLOX STAKING

Running your own validator has never been this smooth.




Designed for stakers with at least 32 ETH, Blox Staking is an open-source, fully non-custodial staking platform for Eth2. Security-conscious users can easily generate and manage 1 or many validators using the platform which consists of 3 main components:


Blox Live Desktop App (https://www.bloxstaking.com/documents/fundamentals/#blox-desktop-app)

A self-contained Desktop App, Blox Live is the gateway to convenient non-custodial ETH staking. The app is run locally, offering the highest level of security and bundles together all of the functionality for securely managing backups, key imports, creating and managing validators, and more.

Live maintains direct connectivity with Blox Infra and the user’s cloud service, on which KeyVault remote signer is installed.

Blox KeyVault (https://www.bloxstaking.com/documents/fundamentals/#blox-key-vault)

Validator keys are kept completely segregated and secured in KeyVault – a remote signer powered by Hashicorp Vault (https://www.vaultproject.io/) with a proprietary plugin for signing functionalities (https://www.bloxstaking.com/documents/fundamentals/#validator-signing-duties) and built-in slashing protection (https://www.bloxstaking.com/documents/fundamentals/#slashing-protection).


To ensure that Blox Staking is fully non-custodial, KeyVault is not held on Blox servers, it is kept completely segregated and installed on a user’s personal cloud account. During the installation process, restricted permissions are created for Blox to transmit validator signing duties to KeyVault.

Blox Infrastructure (https://www.bloxstaking.com/documents/fundamentals/#blox-infra)

Blox Infra nodes ensure consistent connectivity to the blockchain and manage signing requests for each user’s personal KeyVault instance. This configuration empowers validators to optimize staking returns, minimize risks, and keep complete control over their assets.

https://i.imgur.com/nmNzwHr.jpg Staking ETH is open to anyone who wants to help secure the network and gain rewards in return. More about Eth2 → (https://www.bloxstaking.com/documents/eth2/)

https://i.imgur.com/hXVEUsL.jpg Join in on network decentralization by importing validators into Blox Staking. Import Validators --> (https://www.bloxstaking.com/)

https://i.imgur.com/11VL7XI.jpg Generate rewards for your stake directly from the network. No middleman and no hidden fees.   Download Blox → (https://www.bloxstaking.com/)

SECRET SHARED VALIDATORS
Developing the future of decentralized ETH staking.


Blox is building Secret Shared Validator (https://medium.com/bloxstaking/an-introduction-to-secret-shared-validators-ssv-for-ethereum-2-0-faf49efcabee) (SSV) technology with the Ethereum Foundation to bring better infrastructure resilience to Eth2.


SSV is the first secure and robust way to split Eth2 validator keys between non-trusting operators which can transform staking services, decentralized pool performance, and security.

With SSV forming the network’s foundation, Blox is developing a decentralized ETH staking pools protocol affording ETH holders with less than 32 ETH the chance to participate in Eth2, with 0 security compromises.
 
Want to join SSV R&D? Send a message in the Discord (https://discord.com/invite/gvWKMjzVEd) SSV channel!

RESOURCES
Links
Website (http://bloxstaking.com)
Explorer (https://etherscan.io/token/0x177d39ac676ed1c67a2b268ad7f1e58826e5b0af)
Github (https://github.com/bloxapp)

Documentation
Blox Ecosystem Overview (https://www.bloxstaking.com/documents/the-blox-ecosystem/)
Blox Staking Overview (https://www.bloxstaking.com/documents/fundamentals/)
Blox Staking Tech Overview (https://www.bloxstaking.com/documents/tech/)
SSV - Ethereum Foundation Grant (https://medium.com/bloxstaking/grant-from-the-ethereum-foundation-to-develop-secret-shared-validator-nodes-for-ethereum-2-0-d7f8f6487916)
CDT Tokenomics (https://www.bloxstaking.com/documents/blox-native-token-cdt/)
Eth2 Knowledge Base (https://www.bloxstaking.com/documents/eth2/)

Videos
Installing & Running Your Eth2 Validator (https://www.youtube.com/watch?v=OilYItTTz8c)
Importing Validators Into Blox Staking (https://www.youtube.com/watch?v=FViyokoQjSo)
SSV Community Calls (https://www.youtube.com/playlist?list=PLmJPXjK8Nkd2Jk7ZO4kfgrRC_9L_9esz_)

How do you pay for a validator and activate it?

Payment is charged when you set up a validator. It’ll be activated once payment is made.   

I had some problems, too, but then I figured it out. There’s a special section in settings where you should enter your data.

You need no less than 32 ETH for entry, right?

So far yes, but they promise to reduce the entry barrier soon.   

How much is it planned to be?

No info yet, we should wait   

I can’t understand the CDT token burning system. How does it work?   

There’re two stages. First, the tokens worth of 1 USD at a current exchange rate are bought and then they are burnt as annual payment. The idea is to reduce the supply of CDT to begin to use CDT 2 later. It’ll be used as a reward for block producers.   

Will CDT 2 be burnt, too?   

Yes, they will be used to pay network commission.   

What can I do with CDT if I still have any?   

Everyone who has these tokens can use them to manage the network – make important decisions and so on. 

We will publish a lot more information regarding the use cases. Besides the governance mechanism that will be integrated, the token will be used for future purposes on the SSV work.
It will be served initially for two purposes, governance on decision making and utility in the SSV network (longer-term)

The service is free and will remain that way for the foreseeable future.

Then it turns out that every holder will become a part of a decentralized system. It’s much safer. 

How is the price fixed? 

It is denominated in USD. The validator is charged in USD, but the payment is provided in ETH no matter what the exchange rate is. The price is fixed at $180.

Are there any risks if you bet on your own? 

They say it’ll take more time to get connected because of constant safety assessment. Also, a validator can easily be hacked.   

A decentralized system is much better. The data isn’t stored in one place as it is in case of centralized systems. It’s a different level of safety. No one can control all the system, intercept file transfers or disrupt a validator.

If they get control over an entire system, the currency is lost.

What’s the main benefit if a decentralized system?

A decentralized system doesn’t store both encryption keys, meaning that they keys aren’t exchanged if transfers are made or anything else is done with ETH. Other systems don’t store your personal encryption key, but they can influence your income by disrupting a validator. It’s impossible to steal ETH.   

Where are the keys stored then?

On a cloud server.

Will it be hard for a beginner to work with the system?   

It’s not hard, but they’ll have to use command line to finish setting up a validator.   

I recommend everyone to check a validator regularly. If technical errors occur, they can switch it to autonomous mode. Idle time leads to the reduction in profit. It’s better to use a ready-made platform, you can use it to manage the entire system, thus streamlining operation of several validators. They should work 24/7 if you want to maximize profit.     

Will I have complete control over the system?

Yes, the company is only responsible for technical aspects.

You will have to confirm every action because the company isn’t responsible for them. For example, only a client can confirm the validator’s request in his or her own account.   

I have a couple of questions regarding the system. How to pay for a validator? How many ETH do I need to have for withdrawal? 

You pay for a validator when setting it up. You’ll see a form and fill out the data. The validator will be activated once payment is made.   

You need no less than 32 ETH to get started. They promise to reduce the threshold in the future, but I can’t say when it’ll happen because there’s no info so far.   

Thank you very much guys, but I have more questions now. I’ve just started studying the project, that’s why I have so many questions. What is SSV needed for? Why not to use the technologies everyone is used to? 

SSV is better for ETH architecture and it also allows to create validator keys safely. Other technologies can’t ensure similar stability and safety level.

How do they ensure high level of safety?   

You use the platform to fully control all validators. This is a local app, that’s why the safety level is very high.       

If it’s local, where are the keys stored? 

They are stored in a cloud storage created for every new user. 

You forgot to say that the system minimizes the risks and increases profitability.   

I’m new here, I have a couple of questions about the system. Will I have control over it or will the company manage it, too?   

It’s the user to have control over the system. The platform is needed to gather all validators in one place and manage them, it’s also responsible for technical aspects, for example, it helps to organize operation of a validator.       

Thanks, but I have one more question. Why is it needed to confirm every action with the help of a validator?     

The company isn’t responsible for your activities, that’s why confirmation is needed. Only the user can confirm actions. For example, you will have to confirm validator’s request in your personal account.   

How is that level of safety reached?   

The platform allows to control all validators, also, it’s fully local. It also improves operational stability of a validator and minimizes the risks. 

Is there any info on how one can influence operation of a validator? 

A decentralized system doesn’t allow to fully control it. Scammers can influence it insignificantly, but, in most cases, the problem is fixed quickly and you have no reasons to worry.       

I heard that it’s easy to hack a validator that’s why I can’t trust the platform.   

Given that the system is decentralized, scammers won’t be able to fully control it. They can’t intercept files or steal ETH.   

I’ve been using this platform for some time, but I still don’t understand how CDT2 is burnt. Could anyone please explain?     

There’re two stages of burning. First, they buy tokens for $1, then they use them for annual payment. It’s needed to reduce the number of CDT2 to make it possible to use it as a reward for block producers in the future.   

Will they keep burning them? Even when these tokens will be used as a reward.   

The website says that they will be used to pay network fee, that’s why they are burnt and their value will grow in the future.   

I have some CDT2 at the moment, how can I benefit from it in the future?   

Token holders will be able to make decisions regarding network management. This will help to make important decisions and take part in SSV network. More info about their use will be available in the future. But I can also say that the token’s role in SSV will be important.   

Does it make sense to keep them? Will they be useful?   

Token holders will become a part of a decentralized network. It will make the platform much safer. If you want to be able to make decisions and take part in the network’s development, it makes sense to keep the tokens.   

One more interesting issue is the fixation of validator cost. How does it happen? I understand how payment works, so this is my only question.   

Payment is charged in USD, but is converted to ETH no matter what the exchange rate is. The price is fixed at $180.

I’d like to switch to this platform, but I have several questions. How can I transfer existing validators to it? How many validators can I use and how to pay for them?   

Transferring a validator is easy, it takes no more than 15 minutes. Download the platform to your PC and sign up. There’s a special section that describes the process in details. You can use as many validators as you want and each of them is paid when you set them up.   

Can I transfer several validators at the same time?   

The platform allows to transfer up to 100 validators at the same time, but you can transfer more if you ask the support team for help. They’ll reply quickly.     

What are the requirements for a validator?   

You will have to leave 32 ETH in the network – this is the minimum entry threshold. You can’t disconnect it from Eth2 and Eth1 chains, the reason is establishing a stable connection with infrastructure.   

What about the penalty system? What actions can lead to getting disconnected form the system?   

You may be punished for violation of interests of the network – for long-term absence, wrong offers and attestation. That’s why you can’t disable validators for a long time manually. The platform can also reduce the reward rate significantly and disconnect you from network.     

The last question is about safety. How are keys stored? 

Every key is considered to be “hot”, meaning that the validator is active all the time and it uses the key to confirm the actions. The key is encrypted in a cloud storage because it’s less safe to do it based on the validator.   

How does staking return work on Eth2? I started working with this platform recently, so I still have questions.   

Staking return is the passive income you get from a validator. A validator does its job by maintaining and developing the network and thus generates income.     

What does the reward amount depend on? As far as I understand, there may be several factors. 

Each time a validator performs a task, it generates income which can constitute good profit with time. The number of the performed tasks depends on the capacity of a validator and the total number of validators. According to the official information, you can expect the annual rate to be 15-18% during the first year and 8-10% during the next one. You can use a calculator in your personal account to estimate profitability.   

Thanks. I have one more question regarding the difference between Eth2 and Eth1. Could you please tell me more about it?

Eth2 is an enhanced version of Eth1. The consensus algorithm was updated and this let to use blockchain as a proof of stake, relying on the validators.   

What makes it different from mining? It seems to me the processes are quite similar.   

Validators check and offer new blocks for the system, while miners compete for their generation. This process doesn’t require high electricity consumption and expensive equipment. 

What are your recommendations on working with the platform? I’ll be very grateful for advice.

I recommend you to pay attention to the validators because they can lose their profitability. The system automatically offers setting recommendations, you should pay attention to them as well.     

I have several questions regarding CDT tokens. How will they be used in the future? Does it make sense to store them?   

At the moment, the tokens are a part of the payment structure, meaning that ETH is converted to CDT, for example to pay for a validator. DEX exchange is also used. In the future, the company will start burning tokens to reduce their amount and increase their value. It makes sense to store them if you want to take part in making important decisions regarding platform operation.     

How can one get them? My balance is low so far, but I’m planning to take part in the platform operation in the future.   

The tokens are provided as a reward to the block producers for performing their duties properly. Thus, tokens will be fully integrated into the system.   

I heard a lot about CDT staking. Can any CDT holder do it? How do you do it? Does it make sense to do it at all?     

Any token holders can do it. You need to go to the storage where you can see your CDT balance. You can get ETH as a reward. In the future, it’ll also be possible to get CDT (proportional to the share of CDT).   

What are other functions of CDT?   

CDT stimulates block producers. The reward grows depending on how they perform their duties. The producers organize and protect the network, that’s why they are the main ecosystem.   

Are there any forecasts regarding the growth of CDT token?   

It’ll definitely grow when they start burning the tokens. It also depends on the number of the system’s users: the more users there are, the more tokens will be bought.   

How does decentralization work? This is a very interesting thing for me.

The system is based on validator nodes. A chain of pools manages a vast stake pool to keep them safe and reliable. Each of these pools works under SSV system, meaning that the validator keys are divided into several parts. To restore a key, you need a minimum amount of those parts, also, the threshold of the signatures needed to restore a key and confirm the signature itself in the chain of beacons is low (its 2/3).   

Why do they need pools if the keys are divided into parts? 

The pools work as an extra layer of protection between a validator and beacon chain.   

Does it mean that every system participant is a pool? If so, how does it happen?   

Any user who stakes 0,1 ETH can be a validator. They get tokens as a reward and can transfer or sell them to other users. ETH used for staking becomes a participant of a beacon chain, bringing extra tokens to the users.   

Does it turn out that the funds of the users are liquid? 

Yes, but it’s true only for those who can stake so far. Other users will access transferring and selling tokens at later stages. Exact timeframes are not known so far.   

How do block producers work?   

These are the subjects responsible for network protection and performing the duties of the pool assigned by a pool chain, they also have a right to manage infrastructure (client-validator) to perform the duties of the pool on the behalf of one of its participants.   

What’s the problem with using similar platforms that can store the info on their own servers? I’m talking about the keys, stakes and so on.   

There’re several types of platforms. Some of them store the validator keys of the users, but not the withdrawal keys. Thus, they can’t manage the users’ funds. This helps to ensure safety, but leads to high fees for reduced reward.   

But it’ll be harder to access the funds if the platform doesn’t have full control over validators and keys, right?   

The platforms that store validator and withdrawal keys violate security meaning that there is the third party in the system. This leads to fees. The fees increase exponentially – the more validators participate, the higher the fee is. Yes, it’s harder to access this system, but the scammers manage to damage it anyway by reducing the profitability and etc.   

What makes Blox different from platforms like that?   

Blox doesn’t store validator and withdrawal keys. It allows to optimize setting up a validator and managing it in Eth2 system. It allows to maximize the profit and minimize the risks. But the main advantage is that the users fully control their assets.   

How can scammers benefit from the platform vulnerabilities and why can’t they do the same in case of Blox?

There’re several options. They can block the keys, extort money for them, steal the reward and etc. Some of them can even ruin the entire system. Blox uses decentralization which makes hacking impossible.

Does it turn out that it’s more beneficial to use Blox not only to maximize the profitability, but also to improve safety? 

Yes, if you follow the platform’s recommendations and don’t violate the rules, your income will grow. Also, it’s safer than its analogues from many points of view.