Konstantin Lomashuk

Entrepreneur, blockchain investor Ethereum, Cosmos, Dfinity, EOS, Tezos, Polkadot. Previously co-founder Satoshi Fund.

3 posts
Economy, Cosmos Why we are against raising the number of validators

<p>Currently, 6 validators control more than <code>33%</code> of Cosmos Hub voting power with <strong><strong>over 62 000 000 ATOM</strong></strong> at stake <strong><strong>(&gt;313 000 000 USD)</strong></strong>. Their <a href="https://medium.com/@hector_89360/cosmos-hub-validators-rich-list-9ed69274e5e">monthly revenues</a> are sustainable and in most cases, are high enough to behave in interests of the Cosmos ecosystem even if they are technically able to collude. Their income is also sufficient to maintain reliable infrastructure, provide high level of security and upgrade their facilities. If we will look at validators from 80 to 100 we may notice that they have around <strong><strong>1 252 370 ATOM</strong></strong> at stake <strong><strong>(6 261 850 USD)</strong></strong>. Monthly revenues of a single validator in this group, in most cases, do not exceed <strong><strong>1000 USD</strong></strong>. Most likely, it is not enough to provide sustainable improvements, cover running costs, pay salaries to the employees and add value to the ecosystem. If we would broaden validators set and add 25 more, their revenues, probably, would be even less. Their ability to provide secure services in the long term is questionable as well as ability to compete and attract new delegators.</p><p>Situation with network decentralization will not change vastly, last 20 validators have total voting power less than <strong><strong>0,75%</strong></strong>. Taking that into consideration we suggest that additional 25 validators will not add more than <strong><strong>0,5%</strong></strong> creating state of the ecosystem where <strong><strong>36%</strong></strong> of validators have less than <strong><strong>1,25%</strong></strong> of voting power making power distribution even more irrational. This issue should be addressed before raising the threshold to establish fair distribution and define a bottom border of entering the validator's set.</p><p>These validators will have higher risk of slashing with lower cost increasing economic viability of such a harmful behavior. For example, the cost of double-sign for Polychain Labs is higher than <strong><strong>3 000 000 USD</strong></strong> while the average cost of double-sign for validators from 80-100 is close to <strong><strong>15 000 USD</strong></strong>. The cost for validator #100 is less than <strong><strong>10 000 USD</strong></strong>. This state of the ecosystem may undermine the overall trust of the Cosmos network affecting decentralization even more as delegators would not even consider to stake out of the top ten experiencing frequent slashing events.</p><h1 id="conclusion"><strong>Conclusion</strong></h1><p>To sum up everything written above, we suggest, that Cosmos Hub is still in the early stage and not mature enough to rise that number <em><em>as there does not exist strong necessity to do so and outcomes are not clear enough</em></em>. In our opinion, we should take more time to establish a healthier spirit of competition <em><em>inside the existing validator's set</em></em> and see if the smaller validators in the set are able to attract new delegators and provide sustainable services.</p><p>We understand that raising the threshold may bring new players in and final intentions are positive, but there may exist an opposite direction that has negative implications in the long run. In that case, our suggestion would be to collect more empirical data and increase the threshold based on the results of the first year as we do not need to rush forward. We already saw <a href="https://twitter.com/zmanian/status/1145072296723275776">double-sign slashing</a> and want to decrease the probability of such events being sure that the majority of validators are reliable and sustainable.</p><hr><p><strong><strong>P2P Validator</strong></strong> offers high-quality staking facilities and provides up to date information for educational purposes. Stay tuned for updates and new blog posts.</p><hr><p><strong><strong>P2P Validator</strong></strong> offers high-quality staking facilities and provides up to date information for educational purposes. Stay tuned for updates and new blog posts.</p><p><strong><strong>Web:</strong></strong><a href="https://p2p.org/"> https://p2p.org</a></p><p><strong><strong>Stake ATOM with us:</strong></strong><a href="https://p2p.org/cosmos"> https://p2p.org/cosmos</a></p><p><strong><strong>Twitter:</strong></strong><a href="https://twitter.com/p2pvalidator"> @p2pvalidator</a></p><p><strong><strong>Telegram:</strong></strong><a href="https://t.me/p2pvalidator"> https://t.me/p2pvalidator</a></p>

Konstantin Lomashuk

from p2p validator

Staking Introducing P2P Validator

<p>Hello, world! We are building P2P Validator — the GUI for painless blockchain assets staking across 9+ Proof-Of-Stake networks. We support Tezos XTZ mainnet, Polkadot, Cosmos and IRISnet testnets from the beginning, and ready to take Nucypher, Dfinity and Solana on board.</p><p>Our mission is to positively influence the development of Proof-Of-Stake technology and improve existing networks by mindful alternate proposals while offering token holders to hedge their staking rewards on the other hand.</p><p>Whether you chose to delegate your digital assets to P2P Validator or not, we welcome you to join our social channels, educational hub and use our DApps, all of which will be open-source.</p><p><strong><strong>Public website:</strong></strong> <a href="https://p2p.org/?utm_source=1_post&amp;utm_medium=creds_link&amp;utm_campaign=blog">p2p.org</a></p><p><strong><strong>Medium:</strong></strong> <a href="http://medium.com/p2peconomy">medium.com/p2peconomy</a></p><p><strong><strong>Twitter:</strong></strong> <a href="http://twitter.com/p2pvalidator">twitter.com/p2pvalidator</a></p><p><strong><strong>Telegram:</strong></strong> <a href="http://t.me/p2porg">t.me/p2porg</a></p><p><strong><strong>By choosing a right delegate, supporting crucial network alternating decisions and first of all — by fully accepting and acting in course with decentralized community values and code of conduct, we will definitely achieve Proof-Of-Stake social and algorithmic consensus.</strong></strong></p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/1.jpeg" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/1.jpeg 600w, https://economy.p2p.org/content/images/2020/09/1.jpeg 1000w" sizes="(min-width: 720px) 720px"></figure><h3 id="why-delegate-to-us"><strong>Why delegate to us?</strong></h3><p><strong><strong>Simplicity &amp; Effectiveness.</strong></strong> It’s unbelievably easy to stake your assets across different networks with us. Tezos Bakery is already available for XTZ delegation and will be expanded to 9+ networks all within single GUI, as soon as their testnets and then mainnets are launched. As of this writing, we’re moving towards adding an exhaustive cross-network analytics to help you track rewards flow and analyze the value of different stakes.</p><p><strong><strong>Focus on Governance.</strong></strong> PoS implies that the network alternations are voted by its nodes, where the highest stake value determines the power of voice. As a general stakeholder, we offer a smart on-chain governance insight within each ecosystem we are presented, meaning to represent your interests and execute your will whether you don’t have enough time or desire to do so. In other words, we help networks grow in value while increasing the value of your own stake and rewards by stopping unfair and making the right decisions happen.</p><p><strong><strong>360° Security.</strong></strong> All independent third-party auditors are welcome to try and test our infrastructure security.</p><p><strong><strong>Community impact.</strong></strong> We’re keen to become the leading educational hub and informational source for all things Peer-to-Peer and blockchain thus turn our financial experts, developers and analysts to look trendy and share their findings across our blog and social media.</p><h3 id="network-portfolio"><strong>Network portfolio</strong></h3><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/2-20.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/2-20.png 600w, https://economy.p2p.org/content/images/2020/09/2-20.png 1000w" sizes="(min-width: 720px) 720px"></figure><p><strong><strong>Tezos:</strong></strong> <em><em>mainnet / staking opened [</em></em><a href="http://p2p.org/"><em><em>start earning rewards</em></em></a><em><em>]</em></em></p><p><strong><strong>Cosmos:</strong></strong> <em><em>testnet / staking opened</em></em></p><p><strong><strong>IRISnet:</strong></strong> <em><em>testnet under construction</em></em></p><p><strong><strong>Polkadot:</strong></strong> <em><em>testnet under construction</em></em></p><p><strong><strong>Dfinity:</strong></strong> <em><em>testnet under construction</em></em></p><p><strong><strong>Algorand</strong></strong> <em><em>testnet under construction</em></em></p><p><strong><strong>Solana:</strong></strong> <em><em>testnet under construction</em></em></p><h3 id="become-a-business-partner"><strong>Become a business partner</strong></h3><p>Running and maintaining an infrastructure are headaches.</p><p>P2P Validator is built to simplify staking and take all the node weightlifting to unfold new revenue sources for you. We’re open for business offers and proposals from existing investment funds, exchanges, foundations, services and other blockchain-related financial institutions and all first-string asset holders.</p><p>For example, if you’re an exchange then you probably aware that your customers most likely prefer platforms that provide staking and rewards among other options. While you may also know that running a dedicated node in each network results into tremendous headaches and unplanned costs. P2P Validator completely eliminates infrastructural, salary and token costs while makes you forget about time consuming node maintenance at the same time.</p><p><a href="mailto:[email protected]">[Drop offers here]</a></p><h3 id="risks-as-a-staking-as-a-service-provider"><strong>Risks as a Staking-as-a-Service provider</strong></h3><p>We are aware and take on all possible risks associated with the unfair performance of our duties. In accordance with the rules of networks, such actions will be voting procedures evasion, double transaction signatures and low node uptime.</p><p>In case, if you’re running your own node, all fines are your responsibility whether you have basic or venture-level infrastructure behind you. Voting also requires deep understanding of blockchain, PoS and network nuances and investments, which are not granted even with the highest stake possible. Token delegation is a solid workaround to decrease risks yet ensure your interests are presented in the exact network.</p><h3 id="core-business-values"><strong>Core business values</strong></h3><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/3-18.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/3-18.png 600w, https://economy.p2p.org/content/images/2020/09/3-18.png 800w" sizes="(min-width: 720px) 720px"></figure><p><strong><strong>Security.</strong></strong> Protection of your stake and personal data are our top priorities. Each P2P Validator community member is free to stay anonymous to others as well as hide their financial data, if feeling so, but not necessarily should. Each user is free to bring a crime to an arbitrage or raise suspicions and doubts against service itself or other members of the community. Arbitrage is done ad-hoc to ensure objectivity.</p><p><strong><strong>Transparency.</strong></strong> All our actions and decisions are clearly visible and transparent to our community. We are sharing all financial data on returns, cycles, stake amount and delegation capacity as well as the status of all networks and our project updates.</p><p><strong><strong>Groundbreaking technology.</strong></strong> P2P Validator is dedicated to combine different networks under a single interface for an investor’s the peace of mind and to save hours usually wasted on switching between wallets and staking service providers. We’re planning to further simplify staking by adding open-source DApps and other tools for community needs.</p><p><strong><strong>Benefit.</strong></strong> Staking exists to generate new coins and revenue. Although we do have static 10% fee implemented to all rewards you get from staking operations, we are 100% sure staking creates additional benefit for our users on the first place. Using our expertise, we pick only the most successful networks and execute smart governance to ensure growing value and high returns.</p><p><strong><strong>Smartness.</strong></strong> Perfection comes from experience. As the general stakeholder, we provide deliberated business decisions based on deep financial analysis and understanding. We are more than interested in avoiding overdelegation and helping networks thrive, as we are staking our own assets on our node.</p><h3 id="community-benefit-roadmap"><strong>Community Benefit Roadmap</strong></h3><ol><li>Educate, demonstrate and influence. As we define ourselves as the general opinion leader, we see our purpose in creating an international educational hub for all things Proof-of-Stake. The part of our revenue is spent on maintaining the highest possible level of educational materials: webinars, guidelines, insights and news representation. The success of each community member affects the network and thus our success also depends on it, so we make sure that each community need is fulfilled within P2P Validator ecosystem.</li><li>Support open-source DApp development. Creating robust yet efficient applications is the part of our strategy to benefit the Proof-of-Stake community. We believe in open-source development and values, so expect all the DApp source code available on Github right from the start. Modes, upgrades and enhancements are welcome. Also we’re planning on supporting independent developers and projects to further enrich the ecosystem.</li><li>Spend our revenue for the community building. We will use a significant percentage of our income to construct a strong and intelligent community of users behind P2P Validator. In long-term this will help to further promote P2P economy and Proof-of-Stake as its integral part, diluting the existing community of enthusiasts, foundations, and core developers with fresh members.</li></ol><h3 id="tl-dr-project-origins"><strong>TL;DR: Project origins</strong></h3><p>P2P Validator has been established in 2018 after a few successful projects delivered by the same team of chaincode developers and crypto enthusiasts. From testnets to mainnets our mission is to promote values of the blockchain assets and give people access to the new emerging peer-to-peer economy.</p><p><strong><strong>Contributing to</strong></strong> <a href="http://multy.io/"><strong><strong>Multy</strong></strong></a><strong><strong>:</strong></strong></p><p>Multy is a blockchain-based multi-cryptocurrency and digital assets open-source wallet available in the web, on iOS and Android. Imaguru Blockchain Hackathon winners.</p><p><strong><strong>Contributing to</strong></strong> <a href="https://crypto3.nilfoundation.org/"><strong><strong>Nil Foundation</strong></strong></a><strong><strong>:</strong></strong></p><p>This library is a modern cryptography backend designed in generic programming style. Library intention is to become an industry-standard cryptography library developing faster than OpenSSL and including modern schemes and protocols.</p><p><a href="https://p2p.org/?utm_source=1_post_link_end&amp;utm_medium=medium&amp;utm_campaign=blog"><strong><strong>Start staking and earning rewards</strong></strong></a></p>

Konstantin Lomashuk

from p2p validator

Staking Game Of Stakes: The battle has begun!

<p>Howdy, COSMOnauts,</p><p>Game of Stakes has come online and P2P Validator is happy to be among ones to take part in the clash!</p><p><strong><strong>We are pleased to announce a live explorer to help you enjoy this game at its best.</strong></strong></p><p><strong><strong>⚔</strong></strong> <a href="https://cosmos.p2p.org/?utm_source=1post_medium&amp;utm_medium=blog&amp;utm_campaign=GoS"><strong><strong>Use Game Of Stakes explorer to track highscores</strong></strong></a> <strong><strong>⚔️</strong></strong></p><p>For those who haven’t been following the buzz, <strong><strong>Game of Stakes</strong></strong> or <strong><strong>GoS</strong></strong> is a unique participatory research program with real-life incentives for attackers. New adversarial environment Genki-3001 is designed to maximize the effectiveness of cartel formation and <a href="https://medium.com/tendermint/the-game-of-stakes-its-time-for-some-game-theory-278608c94e6e">vote withholding attacks</a>, will demonstrate how collusion and deceptive actions interact with the incentive layer of a BFT Proof of Stake protocol.</p><p>Participants are to acquire rewards through censoring others, highlighting misconfigured node setups, and sending deceptive traffic to other nodes (DDOS), and vice versa the stake is decreased for being a victim to such actions.</p><p>Stay on our lookout for further updates and share your feedback on the explorer:</p><p>→ <a href="https://twitter.com/p2pvalidator">Twitter</a></p><p>→ <a href="https://t.me/p2porg">Telegram</a></p><p><strong><strong>Let the most resilient win!</strong></strong></p>

Konstantin Lomashuk

from p2p validator