Topic: Why would you host a ETH 2.0 validator node instead of going with Binance? (Read 290 times)
January 22, 2021, 11:51:26 AM
Mostly the reason I can think is trust if you have no trust on any platform for them to do staking at your eth then you can do it your self if you have enough minimum 32 eth on your side. I can see many platforms offering staking service but the most trusted so far is Binance.
December 12, 2020, 03:10:13 PM
You won;t be able to get it back when you want to as I read it on binance. Its going to be locked for a long period of time. I tried reading it for like a minute and stopped reading it from binance page when I learned its going to locked there. Obviously you don't wanna do that especially when you don't know when the bear market is going to happen.
For those who have small amounts of money, it is much more profitable to participate in staking on exchanges, including the Binance exchange. Rather than looking for different pools to invest in the Ether 2.0 node. Staking on proven platforms is much more profitable and safer.
December 09, 2020, 03:37:39 PM
That is what I am concerned about. However, being disconnected from Internet or electricity for even hours won't get you fined. But Vitalik had mentioned around 75% uptime (It was even less than that, I don't remember correctly) is fine as well. It is not that you won't be affected. Yes, you will be but it will still remain profitable.
Could you give me a link to similar words of Buterin. I didn't hear about the fact that node owners will be allowed to stay idle for 1/4 of the time. Previously, the developers focused on the fact that the nodes should work smoothly. Perhaps now, due to the large number of nodes, they decided to reduce the requirements for the time of operation of the node.
December 06, 2020, 10:43:04 PM
I never thought Binance would be having handling a stake for Ethereum I was curious if they would have a fee for every holders. If none I don't think any reasons why they don't ask fee for having staking Ethereum on their platform.
Edit: Just for reference (below)
I think this is the cons:
https://www.binance.com/en/blog/421499824684901302/Binance-Supports-ETH-20-Staking
Edit: Just for reference (below)
I think this is the cons:
Quote
During the activity, all users with completed KYC verification will receive an additional BNB reward equivalent to BETH while also earning the staking rewards. The users' rewards during the activity = the BETH rewards obtained by staking ETH + equivalent BNB to BETH income.
https://www.binance.com/en/blog/421499824684901302/Binance-Supports-ETH-20-Staking
That KYC verification is not a deal breaker to me. But not charging anything for their stacking service is.
December 06, 2020, 09:47:16 AM
32 Eth minimum is definitely a deal breaker and makes it sound like a ponzi scheme. Nobody cares though. As long as numbers go up, people happy.
Don't bother with this. Go keep trading on binance, less headaches, more returns.
Don't bother with this. Go keep trading on binance, less headaches, more returns.
December 06, 2020, 06:18:19 AM
I never thought Binance would be having handling a stake for Ethereum I was curious if they would have a fee for every holders. If none I don't think any reasons why they don't ask fee for having staking Ethereum on their platform.
Edit: Just for reference (below)
I think this is the cons:
https://www.binance.com/en/blog/421499824684901302/Binance-Supports-ETH-20-Staking
Edit: Just for reference (below)
I think this is the cons:
Quote
During the activity, all users with completed KYC verification will receive an additional BNB reward equivalent to BETH while also earning the staking rewards. The users' rewards during the activity = the BETH rewards obtained by staking ETH + equivalent BNB to BETH income.
https://www.binance.com/en/blog/421499824684901302/Binance-Supports-ETH-20-Staking
December 06, 2020, 05:40:25 AM
...Can you please explain how is Binance making profits according to the announcement I attached in the thread?...
Binance can only receive income in one case, if it distributes among the participants of the staking not the entire amount that they will receive themselves. The exchange will need part of the funds received for staking to cover the validator's expenses and pay fines. In this case, how will the losses from such work be covered if all the income from placing bets is distributed among the participants?
And hence, the question remains the same how are they going to make profits.
Validator's expenses won't be too much for them. They will have to use just one hardware or spare dedicated cloud server to host validator nodes as multiple nodes can be hosted on a single machine. December 06, 2020, 05:36:50 AM
You won;t be able to get it back when you want to as I read it on binance. Its going to be locked for a long period of time. I tried reading it for like a minute and stopped reading it from binance page when I learned its going to locked there. Obviously you don't wanna do that especially when you don't know when the bear market is going to happen.
Daily stacking reward till December will be distributed in January 2021 in terms of BETH. Now you can trad them with ETH. You also can't be able to withdraw stacked ETH for almost 2-2.5 years if you go with solo stacking.
December 06, 2020, 04:28:48 AM
You won;t be able to get it back when you want to as I read it on binance. Its going to be locked for a long period of time. I tried reading it for like a minute and stopped reading it from binance page when I learned its going to locked there. Obviously you don't wanna do that especially when you don't know when the bear market is going to happen.
December 06, 2020, 04:27:01 AM
First, we won't have any trust issues as most of us are using Binance on a primary basis.
This isn't correct, it's one thing to buy or sell crypto and withdraw the funds, and another to store your ETH on a custodial platform that can be hacked and so on. Plus there can be additional risks with stacking - maybe they will suddenly change the terms and start taking bigger fee, or they will use voting power to support a less popular chain in case of a network split, or they could lie about how many coins they earn from stacking and effectively rob investors.
I'm not saying that Binance will do such things, but the risk and trust are there. Think carefully if you are willing to take it.
December 06, 2020, 03:07:51 AM
...Can you please explain how is Binance making profits according to the announcement I attached in the thread?...
Binance can only receive income in one case, if it distributes among the participants of the staking not the entire amount that they will receive themselves. The exchange will need part of the funds received for staking to cover the validator's expenses and pay fines. In this case, how will the losses from such work be covered if all the income from placing bets is distributed among the participants?
December 05, 2020, 11:35:15 PM
Ethereum is stacking has some constraints restricting people from participating in beaconchain node validation. These are pretty solid:
1. 32 Ether as a minimum requirement
2. Technical and practical difficulties in hosting a node
At first, people don't have 32 ETH to take part. Now, people who are holding that much of Ether, they lack technical skills in hosting and maintaining validator node alive. Letting third-parties stake your 32 Ether on behalf of you has some trust issues and there will be a certain charge out of your APR. But Binance's ETH2.0 stacking service seems promising. First, we won't have any trust issues as most of us are using Binance on a primary basis. On the other hand, Binance is not charging fees as per their announcement for their service. (I am still trying to figure out the reason behind this) On top of that, Binance will bear the risk of on-chain penalties and credit stacking reward daily in terms of BETH. The double reward seems also good for early stackers,
So, can you guys let me know that why would you fall into a mess of creating and maintaining a node to get stacking reward instead of just letting Binance do this for you? Let's discuss.
1. 32 Ether as a minimum requirement
2. Technical and practical difficulties in hosting a node
At first, people don't have 32 ETH to take part. Now, people who are holding that much of Ether, they lack technical skills in hosting and maintaining validator node alive. Letting third-parties stake your 32 Ether on behalf of you has some trust issues and there will be a certain charge out of your APR. But Binance's ETH2.0 stacking service seems promising. First, we won't have any trust issues as most of us are using Binance on a primary basis. On the other hand, Binance is not charging fees as per their announcement for their service. (I am still trying to figure out the reason behind this) On top of that, Binance will bear the risk of on-chain penalties and credit stacking reward daily in terms of BETH. The double reward seems also good for early stackers,
So, can you guys let me know that why would you fall into a mess of creating and maintaining a node to get stacking reward instead of just letting Binance do this for you? Let's discuss.
It is not difficult to find 32 ether for people who have money. It is much more difficult to ensure uninterrupted operation of the computer on which the node will be installed for 2 years. If you suddenly lose electricity or Internet, your node will be disconnected from the network and you will get a fine for this. Personally me it is the main reason.
That is what I am concerned about. However, being disconnected from Internet or electricity for even hours won't get you fined. But Vitalik had mentioned around 75% uptime (It was even less than that, I don't remember correctly) is fine as well. It is not that you won't be affected. Yes, you will be but it will still remain profitable.
December 05, 2020, 11:28:38 PM
....On the other hand, Binance is not charging fees as per their announcement for their service. (I am still trying to figure out the reason behind this) On top of that, Binance will bear the risk of on-chain penalties and credit stacking reward daily in terms of BETH. The double reward seems also good for early stackers...
In addition, users can receive additional rewards in BNB coins, but this will only be possible for those who pass verification on the exchange. Binance definitely makes a profit for doing the validator's work, since it is not a charitable organization and can make a distribution that does not exceed the profit received.
Those BNB rewards are here for just two weeks. Can you please explain how is Binance making profits according to the announcement I attached in the thread? Binance is doing validator work on behalf of stackers and it will credit daily revenue as well. They can only make profits by trading our daily ETH staking rewards they will be getting from beaconchain block validation as they will provide us BETH as a daily reward. But again, they will also start BETH/ETH trading pair.
December 05, 2020, 11:23:57 PM
I've just seen that announcement on Binance page and it has indicated that you don't need a lot of ETH as the minimum is shallow. There would be changes along its way and that's for sure. Temporarily it's a good option for those who want to be a validator but that no charge fees would change dramatically. It's the same as the demand and supply that they'll validate during its operation. Do you think that it's worth to lock your ETH for 2 years in Binance? too many things can happen in that period.
Lock-up period: For participating ETH 2.0 Staking, the ETH will be locked up for about 2 years and cannot be redeemed in advance.
See, BETH introduction from Binance eliminates the mandatory 2 years locking period. That means we will be able to get out from stacking before two years as BETH:ETH trading will be live by then, probably within just 6 months of this service launch. On the other hand, our 32 ETH are locked for 2 full years if we go with solo stacking. But service charges are not mentioned yet which has become a real issue. I think they will announce the charge in the upcoming months.
Edit: Binance will launch BETH trading in January 2021 itself.
December 05, 2020, 11:18:28 PM
Let's admit that the best is to run your own node by yourself without the need of a third part entity to do the task for a considerable fee.
There are a lot of Eth holders who had been waiting for the Eth2.0 release to benefit from staking, i am sure they will be able to maintain the Network until more stakers join and without the need for a whale (binance) to take the biggest share.
Binance knows that not all Eth holders have the technical ability to run a node, and this is why it takes the chance to generate extra income from this. I know that binance is one of the trust companies in the market, but personally i don't suggest anybody to hold his funds in big quantity within it, it's still risky.
There are a lot of Eth holders who had been waiting for the Eth2.0 release to benefit from staking, i am sure they will be able to maintain the Network until more stakers join and without the need for a whale (binance) to take the biggest share.
Binance knows that not all Eth holders have the technical ability to run a node, and this is why it takes the chance to generate extra income from this. I know that binance is one of the trust companies in the market, but personally i don't suggest anybody to hold his funds in big quantity within it, it's still risky.
I know that hosting a node by ourselves is the best solution but it is not just easy like saying a few words. I have a ETH2.0 testnet node running and I know it. Binance only came into the picture as it is not charging any fees. At least, I couldn't find its fee structure from their announcement. Besides, Binance has not just become a name, they also care about your funds parked there. That having said, they are capable of compensating users if funds are stolen or lost by their mistake.
Looks like a nice initiative by Binance to not charging any fees. But who can garante that this will last forever especially for a service that should not provide incomes to binance as announced.
I always have serious doubts about safety with all centralised exchanges in general and not recommend anyone to leave big money there. I know how binance is so reputed but i still can't trust them fully and can't go with such a service for zero fees.
Better to learn how to run my own node and be fully responsible than just giving them to Binance to run its own node.
Yeah, there is no guarantee in their future charges but their stacking model is good. Creating an own node is not that much hard but maintaining it alive most of the time is very difficult which varies as geographical location changes. It is almost impossible to maintain a live node where I am living. Besides, centralized exchanges and Binance has a difference. They care about your funds and their support is great as well. (OP is not promoting Binance in any way - it's just what he has experienced with Binance from 3 constant years.)
December 05, 2020, 09:15:36 PM
I think they're having a hard time raising funds. 32ETH is a pretty large number nowadays. and those with little funding prefer to enjoy this upward trend rather than participate as validators. and those with large funds (whales) prefer to be independent validators, because they can certainly solve the problem.
So that's the reason why Binance's new service is not very popular.
So that's the reason why Binance's new service is not very popular.
December 05, 2020, 06:27:29 PM
Ethereum is stacking has some constraints restricting people from participating in beaconchain node validation. These are pretty solid:
1. 32 Ether as a minimum requirement
2. Technical and practical difficulties in hosting a node
At first, people don't have 32 ETH to take part. Now, people who are holding that much of Ether, they lack technical skills in hosting and maintaining validator node alive. Letting third-parties stake your 32 Ether on behalf of you has some trust issues and there will be a certain charge out of your APR. But Binance's ETH2.0 stacking service seems promising. First, we won't have any trust issues as most of us are using Binance on a primary basis. On the other hand, Binance is not charging fees as per their announcement for their service. (I am still trying to figure out the reason behind this) On top of that, Binance will bear the risk of on-chain penalties and credit stacking reward daily in terms of BETH. The double reward seems also good for early stackers,
So, can you guys let me know that why would you fall into a mess of creating and maintaining a node to get stacking reward instead of just letting Binance do this for you? Let's discuss.
1. 32 Ether as a minimum requirement
2. Technical and practical difficulties in hosting a node
At first, people don't have 32 ETH to take part. Now, people who are holding that much of Ether, they lack technical skills in hosting and maintaining validator node alive. Letting third-parties stake your 32 Ether on behalf of you has some trust issues and there will be a certain charge out of your APR. But Binance's ETH2.0 stacking service seems promising. First, we won't have any trust issues as most of us are using Binance on a primary basis. On the other hand, Binance is not charging fees as per their announcement for their service. (I am still trying to figure out the reason behind this) On top of that, Binance will bear the risk of on-chain penalties and credit stacking reward daily in terms of BETH. The double reward seems also good for early stackers,
So, can you guys let me know that why would you fall into a mess of creating and maintaining a node to get stacking reward instead of just letting Binance do this for you? Let's discuss.
It is not difficult to find 32 ether for people who have money. It is much more difficult to ensure uninterrupted operation of the computer on which the node will be installed for 2 years. If you suddenly lose electricity or Internet, your node will be disconnected from the network and you will get a fine for this. Personally me it is the main reason.
December 05, 2020, 04:08:45 PM
....On the other hand, Binance is not charging fees as per their announcement for their service. (I am still trying to figure out the reason behind this) On top of that, Binance will bear the risk of on-chain penalties and credit stacking reward daily in terms of BETH. The double reward seems also good for early stackers...
In addition, users can receive additional rewards in BNB coins, but this will only be possible for those who pass verification on the exchange. Binance definitely makes a profit for doing the validator's work, since it is not a charitable organization and can make a distribution that does not exceed the profit received.
December 05, 2020, 03:46:01 PM
I've just seen that announcement on Binance page and it has indicated that you don't need a lot of ETH as the minimum is shallow. There would be changes along its way and that's for sure. Temporarily it's a good option for those who want to be a validator but that no charge fees would change dramatically. It's the same as the demand and supply that they'll validate during its operation. Do you think that it's worth to lock your ETH for 2 years in Binance? too many things can happen in that period.
Lock-up period: For participating ETH 2.0 Staking, the ETH will be locked up for about 2 years and cannot be redeemed in advance.
December 05, 2020, 03:33:52 PM
Let's admit that the best is to run your own node by yourself without the need of a third part entity to do the task for a considerable fee.
There are a lot of Eth holders who had been waiting for the Eth2.0 release to benefit from staking, i am sure they will be able to maintain the Network until more stakers join and without the need for a whale (binance) to take the biggest share.
Binance knows that not all Eth holders have the technical ability to run a node, and this is why it takes the chance to generate extra income from this. I know that binance is one of the trust companies in the market, but personally i don't suggest anybody to hold his funds in big quantity within it, it's still risky.
There are a lot of Eth holders who had been waiting for the Eth2.0 release to benefit from staking, i am sure they will be able to maintain the Network until more stakers join and without the need for a whale (binance) to take the biggest share.
Binance knows that not all Eth holders have the technical ability to run a node, and this is why it takes the chance to generate extra income from this. I know that binance is one of the trust companies in the market, but personally i don't suggest anybody to hold his funds in big quantity within it, it's still risky.
I know that hosting a node by ourselves is the best solution but it is not just easy like saying a few words. I have a ETH2.0 testnet node running and I know it. Binance only came into the picture as it is not charging any fees. At least, I couldn't find its fee structure from their announcement. Besides, Binance has not just become a name, they also care about your funds parked there. That having said, they are capable of compensating users if funds are stolen or lost by their mistake.
Looks like a nice initiative by Binance to not charging any fees. But who can garante that this will last forever especially for a service that should not provide incomes to binance as announced.
I always have serious doubts about safety with all centralised exchanges in general and not recommend anyone to leave big money there. I know how binance is so reputed but i still can't trust them fully and can't go with such a service for zero fees.
Better to learn how to run my own node and be fully responsible than just giving them to Binance to run its own node.
December 05, 2020, 02:17:14 PM
I am sure most people that would stake eth with be doing that on third party trusted platforms like binance etc because official staking requires technical knowledge and work of node setup and maintenance which is not for everyone secondly i think the minimum requirement of 32 eth for official staking contract deposit is very big for common people.
December 05, 2020, 02:14:22 PM
Although Binance exchange is also a large and reputable business, they are indirectly doing services that are not their own. This will make investors concerned about the legitimacy of this new idea.
Although ETH 2.0 requires a lot of money from people who want a slot to node, they are sure of profit and credibility, because this is the product they officially created and the ERC - 20 platform already has a reputation. credit from before to now.
This is the reason why most people are skeptical about Binance's new service and they do not seem to trust it very much. It would be better for them to spend a lot of money to get a slot node in Ethereum 2.0's PoS rather than take risks with their money at Binance. This is also the common psychology of current investors, i think.
Although ETH 2.0 requires a lot of money from people who want a slot to node, they are sure of profit and credibility, because this is the product they officially created and the ERC - 20 platform already has a reputation. credit from before to now.
This is the reason why most people are skeptical about Binance's new service and they do not seem to trust it very much. It would be better for them to spend a lot of money to get a slot node in Ethereum 2.0's PoS rather than take risks with their money at Binance. This is also the common psychology of current investors, i think.
December 05, 2020, 01:33:51 PM
Let's admit that the best is to run your own node by yourself without the need of a third part entity to do the task for a considerable fee.
There are a lot of Eth holders who had been waiting for the Eth2.0 release to benefit from staking, i am sure they will be able to maintain the Network until more stakers join and without the need for a whale (binance) to take the biggest share.
Binance knows that not all Eth holders have the technical ability to run a node, and this is why it takes the chance to generate extra income from this. I know that binance is one of the trust companies in the market, but personally i don't suggest anybody to hold his funds in big quantity within it, it's still risky.
There are a lot of Eth holders who had been waiting for the Eth2.0 release to benefit from staking, i am sure they will be able to maintain the Network until more stakers join and without the need for a whale (binance) to take the biggest share.
Binance knows that not all Eth holders have the technical ability to run a node, and this is why it takes the chance to generate extra income from this. I know that binance is one of the trust companies in the market, but personally i don't suggest anybody to hold his funds in big quantity within it, it's still risky.
I know that hosting a node by ourselves is the best solution but it is not just easy like saying a few words. I have a ETH2.0 testnet node running and I know it. Binance only came into the picture as it is not charging any fees. At least, I couldn't find its fee structure from their announcement. Besides, Binance has not just become a name, they also care about your funds parked there. That having said, they are capable of compensating users if funds are stolen or lost by their mistake.
December 05, 2020, 10:20:03 AM
Let's admit that the best is to run your own node by yourself without the need of a third part entity to do the task for a considerable fee.
There are a lot of Eth holders who had been waiting for the Eth2.0 release to benefit from staking, i am sure they will be able to maintain the Network until more stakers join and without the need for a whale (binance) to take the biggest share.
Binance knows that not all Eth holders have the technical ability to run a node, and this is why it takes the chance to generate extra income from this. I know that binance is one of the trust companies in the market, but personally i don't suggest anybody to hold his funds in big quantity within it, it's still risky.
There are a lot of Eth holders who had been waiting for the Eth2.0 release to benefit from staking, i am sure they will be able to maintain the Network until more stakers join and without the need for a whale (binance) to take the biggest share.
Binance knows that not all Eth holders have the technical ability to run a node, and this is why it takes the chance to generate extra income from this. I know that binance is one of the trust companies in the market, but personally i don't suggest anybody to hold his funds in big quantity within it, it's still risky.
December 05, 2020, 10:02:39 AM
have begin with ETH 2.0 but still not show how expectation from many investors by seeing eth raise above $1k, now eth have raise higher price but still lower how expectation from many investor with new way by eth upgrade to 2.0. Just drama by vitalik to get many investor and then he sells with lower price, and when price is dumping he make good news again and many investor will buy on higher price. I think this repeat way always happen with some coin because many investor always trust with developer opinion and they think true, but always have mistake when coin is not raise up although few days after announcement for eth upgrade.
December 05, 2020, 09:27:11 AM
Ethereum is stacking has some constraints restricting people from participating in beaconchain node validation. These are pretty solid:
1. 32 Ether as a minimum requirement
2. Technical and practical difficulties in hosting a node
At first, people don't have 32 ETH to take part. Now, people who are holding that much of Ether, they lack technical skills in hosting and maintaining validator node alive. Letting third-parties stake your 32 Ether on behalf of you has some trust issues and there will be a certain charge out of your APR. But Binance's ETH2.0 stacking service seems promising. First, we won't have any trust issues as most of us are using Binance on a primary basis. On the other hand, Binance is not charging fees as per their announcement for their service. (I am still trying to figure out the reason behind this) On top of that, Binance will bear the risk of on-chain penalties and credit stacking reward daily in terms of BETH. The double reward seems also good for early stackers,
So, can you guys let me know that why would you fall into a mess of creating and maintaining a node to get stacking reward instead of just letting Binance do this for you? Let's discuss.
1. 32 Ether as a minimum requirement
2. Technical and practical difficulties in hosting a node
At first, people don't have 32 ETH to take part. Now, people who are holding that much of Ether, they lack technical skills in hosting and maintaining validator node alive. Letting third-parties stake your 32 Ether on behalf of you has some trust issues and there will be a certain charge out of your APR. But Binance's ETH2.0 stacking service seems promising. First, we won't have any trust issues as most of us are using Binance on a primary basis. On the other hand, Binance is not charging fees as per their announcement for their service. (I am still trying to figure out the reason behind this) On top of that, Binance will bear the risk of on-chain penalties and credit stacking reward daily in terms of BETH. The double reward seems also good for early stackers,
So, can you guys let me know that why would you fall into a mess of creating and maintaining a node to get stacking reward instead of just letting Binance do this for you? Let's discuss.
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