{"id":125489,"date":"2020-12-03T18:16:00","date_gmt":"2020-12-03T15:16:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/dangers-of-hosting-your-own-eth2-node-explained\/"},"modified":"2020-12-03T18:16:00","modified_gmt":"2020-12-03T15:16:00","slug":"dangers-of-hosting-your-own-eth2-node-explained","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/dangers-of-hosting-your-own-eth2-node-explained\/","title":{"rendered":"#Dangers of hosting your own Eth2 node, explained"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a9e33ba3fd96\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a9e33ba3fd96\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/dangers-of-hosting-your-own-eth2-node-explained\/#Is_this_an_easy_thing_to_do_without_any_technical_knowledge\" >Is this an easy thing to do without any technical knowledge?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/dangers-of-hosting-your-own-eth2-node-explained\/#What_does_hosting_your_own_Eth2_node_involve\" >What does hosting your own Eth2 node involve?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Dangers of hosting your own Eth2 node, explained<\/strong>&#8221;<\/p>\n<p style=\"float:right;margin:0 0 10px 15px;width:240px\"><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy8xMDU0MjY0OGNjYmE0YzUxZDRjYTZjNTRiNTc4ZDNiMS5qcGc=.jpg\" class=\"type:primaryImage\"><\/p>\n<pre><code>                                        Hosting an Eth2 node is a big responsibility \u2014 and if things go wrong, this could result in some painful penalties.                    \n                &lt;h2&gt;How does a hosting provider tackle the dangers of running your own node?&lt;\/h2&gt;&lt;p&gt;&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;&lt;em&gt;Allnodes can offer an affordable alternative to doing everything yourself, reducing the risks of financial penalties and slashing.&lt;\/em&gt;&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;The company offers an intuitive user interface, and two easy-to-understand hosting plans to ensure that customers can make an informed decision. This is coupled with support teams who are online 24\/7, all year round, and free node maintenance with instant and unlimited upgrades.&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;Validator keys are given multi-level protection to prevent them from being stolen and lost, and all of this is achieved while ensuring that only users have access to their funds. Nodes are monitored for free \u2014 with dedicated bots providing regular Telegram and Discord alerts.&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;But as we mentioned earlier, uninterrupted uptime is the most important thing to look for in a hosting provider. As a result, Allnodes provides enterprise-grade infrastructure \u2014 with a guaranteed 99.90% service-level agreement in place.&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;Staking on Eth2 doesn\u2019t have to be a daunting experience \u2014 and with the right tools, even those who aren\u2019t technically minded can enjoy the perks of running their very own node\u2026 without the hassle.&lt;\/p&gt;&lt;div style=\"background-color:#f0f0f0;color:#253137;font-weight:bold;padding:8px 21px\"&gt;Learn more about &lt;a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.allnodes.com\/eth2\/staking\/?utm_source=cointelegraph&amp;amp;utm_medium=article1&amp;amp;utm_campaign=ethereum2&amp;amp;utm_term=Allnodes\" style=\"color: #253137\"&gt;Allnodes&lt;\/a&gt;&lt;\/div&gt;&lt;div&gt;&lt;p&gt;&lt;span style=\"color:#a9a9a9;font-size:12px\"&gt;Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice. &lt;\/span&gt;&lt;\/p&gt;&lt;\/div&gt;&lt;h2&gt;What are the alternatives to hosting your own node?&lt;\/h2&gt;&lt;p&gt;&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;&lt;em&gt;Companies exist that specialize in validator node hosting \u2014 and better still, they can be non-custodial, meaning they have no access to user wallets.&lt;\/em&gt;&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;Platforms such as &lt;a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.allnodes.com\/eth2\/staking\/?utm_source=cointelegraph&amp;amp;utm_medium=article1&amp;amp;utm_campaign=ethereum2&amp;amp;utm_term=Allnodes\"&gt;Allnodes&lt;\/a&gt; provide masternodes, full nodes and staking services for dozens of different blockchains \u2014 and have now rolled out support for Ethereum 2.0.&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;This brand launched in October 2018 when CEO Konstantin Boyko-Romanovsky realized just how difficult it is to host a masternode given the technical expertise required \u2014 not to mention the sophisticated hardware and uninterrupted bandwidth that\u2019s needed too.&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;Allnodes says it now hosts more than 8,400 nodes on behalf of its customers with a value in excess of $130 million \u2014 commanding an overall masternodes market share of 13.1%.&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;Instead of getting bogged down in endless technical manuals, the company aims to handle behind-the-scenes operations so crypto enthusiasts can focus on other things. The registration can be completed in just a few simple steps.&lt;\/p&gt;&lt;h2&gt;Are there any other risks that you should be aware of?&lt;\/h2&gt;&lt;p&gt;&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;&lt;em&gt;Keeping validator keys secure is essential, as they can be lost or damaged.&lt;\/em&gt;&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;Eth2 validators who run their own node run the risk of losing their keys, forgetting the password, or damaging the hardware where the keys are stored. In some cases, the hardware may have been physically damaged \u2014 but it\u2019s also possible for crucial data to be lost as a result of a technical fault.&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;And yes, all of this can result in some more financial penalties \u2014 this time for inactivity. Instead of block rewards being reduced, this could result in an ETH stake being permanently slashed.&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;Security needs to be at the forefront of every single person who wishes to become a node operator. Validator keys can also be stolen by someone who manages to gain access to the computer or remote location where the node is being hosted. Messages can end up being double-signed \u2014 seemingly on your behalf \u2014 or a malicious actor could attempt to compromise the network with inaccurate data.&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;If the security of your node is compromised, it\u2019s possible that it could be a year or two before you regain access.&lt;\/p&gt;&lt;h2&gt;What h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ens if the uptime of your node is interrupted?&lt;\/h2&gt;&lt;p&gt;&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;&lt;em&gt;You could end up being penalized, eliminating any financial reward from operating a node.&lt;\/em&gt;&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;It\u2019s worth bearing in mind that you risk being penalized even if the circumstances were outside of your control. A dodgy internet connection \u2014 something that\u2019s commonplace for many of us living in residential areas \u2014 could result in a slashing event occurring. Given how these outages can be caused by everything from bad weather to water damage and road repairs, relying on the infrastructure you\u2019ve got at home isn\u2019t necessarily the best idea.&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;As a result, many of the people who want to operate their own node have decided to pay for an external hosting provider, where they have a greater chance of receiving the type of uptime they need to be regarded as a trustworthy validator. But again, even this approach isn\u2019t without potential pitfalls. Selecting a hosting provider that can\u2019t guarantee continual service could trigger financial losses, and you may not be eligible for compensation as such downtime is often factored into the terms of service.\n<\/code><\/pre>\n<p>If you are going to opt for an external hosting provider, it\u2019s crucial to read legitimate reviews \u2014 helping you to form an opinion about whether the company is reputable. Finally, always remember that market-leading solutions may not be the best course of action for hosting a node. In November, an Amazon Web Services outage affected countless thousands of websites, including the likes of Coinbase, and such an event would have hurt Eth2 node operators too.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_this_an_easy_thing_to_do_without_any_technical_knowledge\"><\/span>Is this an easy thing to do without any technical knowledge?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\"><em>Operating an Eth2 node can get quite complicated \u2014 and wading into this commitment without knowing how things work can result in some costly mistakes.<\/em><\/p>\n<p dir=\"ltr\">Even if an inexperienced validator makes some innocent mistakes, some of the 32 ETH they have staked can end up being taken away from them if they have been seen to work against the best interests of the network. Should 50% of this 32 ETH be deducted, their node will be automatically ejected from participating any further. Given how this would equate to a loss of about $9,500 at current rates, this is best to be avoided.<\/p>\n<p dir=\"ltr\">The problems don\u2019t end here, though. Fully understanding the inner workings of Eth2 can be an uphill struggle to say the least. As the old saying goes, time is money, and you could argue that the effort involved in getting up to speed with this new PoS blockchain may not be worth the hassle given the rise of staking-as-a-service providers.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_does_hosting_your_own_Eth2_node_involve\"><\/span>What does hosting your own Eth2 node involve?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\"><em>It means that you\u2019ll become a validator for the newly upgraded Ethereum blockchain \u2014 and be responsible for verifying transactions and maintaining the network.<\/em><\/p>\n<p dir=\"ltr\">The genesis block of Eth2 launched on Dec. 1, paving the way for long-awaited improvements to the network\u2019s security and scalability. This will involve a shift to a proof-of-stake consensus mechanism, which is regarded as more eco-friendly and eliminates the need for miners.<\/p>\n<p dir=\"ltr\">More than 16,000 validators transferred 524,288 ETH into a deposit contract before a deadline of Nov. 24, paving the way for \u201cPhase 0\u201d to launch a week later. The total value of deposits has grown even further since.<\/p>\n<p dir=\"ltr\">Participants are not going to be able to withdraw this ETH until the current Ethereum mainnet \u201cdocks\u201d with this new blockchain \u2014 a process that could take several years.<\/p>\n<p dir=\"ltr\">Those who host their own node have had to stake a minimum of 32 ETH (worth about $19,000 at the time of writing.) There are also other costs to consider too, such as gas costs and the expense of finding a reliable hosting provider.<\/p>\n<p dir=\"ltr\">That\u2019s a lot of money to have lying around. In exchange for becoming a validator, they\u2019ll receive rewards for contributing to the upkeep of the network \u2014 but with these perks comes responsibility.<\/p>\n<\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/explained\/dangers-of-hosting-your-own-eth2-node-explained\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Dangers of hosting your own Eth2 node, explained&#8221; Hosting an Eth2 node is a big responsibility \u2014 and if things go wrong, this could result in some painful penalties. &lt;h2&gt;How does a hosting provider tackle the dangers of running your own node?&lt;\/h2&gt;&lt;p&gt;&lt;\/p&gt;&lt;p dir=&#8221;ltr&#8221;&gt;&lt;em&gt;Allnodes can offer an affordable alternative to doing everything yourself, reducing the risks&#8230;<\/p>\n","protected":false},"author":1,"featured_media":125490,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1024_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy8xMDU0MjY0OGNjYmE0YzUxZDRjYTZjNTRiNTc4ZDNiMS5qcGc=.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-125489","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/125489","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=125489"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/125489\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/125490"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=125489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=125489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=125489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}