# Dappnode Workshop | Pol Lanski | ETHDam 2023

- Speakers: [Pol Lanski](https://streameth.org/speakers/pol-lanski)
- Channel: [CryptoCanal](https://streameth.org/cryptocanal)
- Date: 2023-10-07
- Duration: 17:46
- Watch: https://streameth.org/watch/yt-I62Y_GkVGXA
- YouTube: https://www.youtube.com/watch?v=I62Y_GkVGXA

## Description

Pol Lanski is the COO of Dappnode.
https://twitter.com/Pol_Lanski

Dappnode
https://dappnode.com/

ETHDam is a Hackathon & Conference that gathered over 500 DeFi and Privacy builders on the 20th and 21st of May 2023 in Amsterdam. 

Privacy is normal. Following the arrest of Alex Pertsev, a Tornado Cash developer in the Netherlands, ETHDam 2023 is determined to counter the chilling effects of the lawsuit and bridge worlds to discuss the future of privacy and encourage to build on the shoulders of cypherpunk giants.

ETHDam is powered by CryptoCanal, - a blockchain education and events platform growing in Amsterdam, spreading its roots to Rotterdam and Zurich. ETHDam 2024 is on the map already! Keep up with us to see updates: 

CryptoCanal https://www.cryptocanal.org/
CryptoCanal Twitter https://twitter.com/CryptoCanal
Join CryptoCanal Community https://t.me/CryptoCanalCommunity 

We would like to thank our partners and sponsors that made this event possible. 🌷
Our BFF 1inch https://1inch.io/

Our Frens: 
Sismo https://www.sismo.io/
Aleph Zero https://alephzero.org/
Scroll https://scroll.io/
RAILGUN https://railgun.org/#/

And our Sisters:
oasis.app https://oasis.app/#earn
Maven11 https://www.maven11.com/
bitvavo https://bitvavo.com/en
Lido https://lido.fi/
Spankchain https://spankchain.com/
API3 https://api3.org/
Gelato https://www.gelato.network/
VanEck https://www.vaneck.com/nl/en/crypto-etn
Marlin Protocol https://www.marlin.org/
Silent Protocol https://www.silentprotocol.org/
Cyber Capital https://cyber.capital/
… and Proto https://twitter.com/protolambda 🍍

## Transcript

foreign [Music] no so okay she's going very risky fantastic but uh but you don't part of this slide didn't show yeah that happened to you as well anyway Okay cool so um yeah you're exit liquidity man and uh just because I tell you that it's gonna Moon GM is going to Moon that doesn't mean anything but there is a way that there is a way in crypto encrypt not gonna 1000x but you can consistently make money and not only this but you're actually helping ethereum being more decentralized you're actually helping ethereum be more resilient to attacks you're actually helping ethereum be more sustainable and because you're helping doing all this you're actually getting paid for it that's fantastic you're doing a good thing instead of pure speculation thank you yeah perfect so you're doing a good thing for the network and at the same time you're getting paid for it instead of speculating with shitcoin so how how are you how are you gonna do it show anyway so what's uh how many of you are sticking nice okay good good and what's your excuse me you don't have your setup yet okay so time okay good it's a good excuse It's a good excuse but it doesn't take that much time who else is not staking pretty much everybody you what's your excuse no APR yeah like a six percent a six percent is like like that not touching this okay Bianca what's your excuse for not staking German regulation that's a good one that's a good one yeah they never they never need to know though um Okay cool so uh there's a lot of excuses but I don't want to hear any of these I don't have 32 weeks you don't need 32 East you can do it with four or with a uh running a note is hard no it's not I'm going to show you how it's not I don't have the technical skills you need none and it takes too long to maintain zero it auto maintains itself if you're using something like that note so no excuses but I've been talking about that note maybe like it's explained very very quickly what is dapnodevnote is free open source software that you can install in your machine and it basically helps run web3 infrastructure it has like a really nice UI which I wanted to show you but I'm probably not going to be able to because my laptop doesn't seem to be working and you have this beautiful UI where you point and click and you say like hey I want a validator execution client uh consensus client validator and me boost if you want or not and all of this is one click it's one click so we went from like a very very deep technical ZK presentation to like how to do things for dummies like me it actually did not understand Pedro's presentation um and if you're if you don't even know how to install a Linux install you can do it you can buy a pre-installed machine tab node is free open source software but we also say sell machines that are pre-installed with our Hardware okay and okay wait a minute anyway okay so um just a few numbers that were on this slide uh just a few numbers so uh just so you have an idea we have around 4 406 validators on ethereum right now which is about a little over half percent of the network and then this is gnosis chain and we have around eight percent of gnosis chain running on that note and when I say we have means that they use our free open source software to manage their validator but how do I know this I know this because this is the graffiti we capture no Telemetry at all no metrics are captured so it's what you do in your dab node it's your machine okay and we know that because it's been the graffiti the word dap node appears like validating from dabner which is a default graffiti that you can always change but it is the default graffiti then we know that you're using top notes okay so how does it look it looks like this you have this app store and then you have all the packages that you can install you can just come here install mysterium node or SSV if you want to do DVT we're going to talk about this right now Bitcoin node click and if you want to do a you want to do a staking setup you choose your execution client your consensus client you install a remote signer where the keys are going to live and then Emmy reviews you can choose what relayers you want to use or not so literally it's like that easy you select one from this one from this you click here you click here accept and you have your staking setup ready okay um there's a lot of things that are not showing anyway so what are the problems so but ethereum was built with decentralization in mind um which means that we have this proof of stake that no other chain has as advanced as ethereum we have this proof of state that allows us to have several people like completely random strangers and a lot of them and as many as we want to participate into decentralization of the network in the validation of the network so anybody here can access the these opportunities of validating the network okay and this doesn't happen in any other network so ethereum has in mind decentralization from the from the very very very design but there are some forces that bring us to centralization and what are those forces that bring us to centralization number one is economies of scale because the only thing that you need to run a validator is an execution layer a consensus layer and everything else is money because every every extra validator will cost you 30 to eat so big players have a lot lower infrastructure costs than solo stickers the solo sticker needs to still run these two but they divide the cost the infrastructure costs on only probably only one validator or two if you're very lucky or three if like wow nice but big infrastructure providers can divide the cost of thousands of validators for each Beacon claimed and execution client so economies of scale bring to centralization okay why centralization because they run more validators they have lower costs means meaning that they have more to reinvest back then so on a long enough time period there is a Divergence on the amount of Revenue that you get because the costs are lower okay um so economies of scale is one big problem the second problem is Mev Mev because Meb um this is not really favorable for solo stickers we'll see why later that said I'm not discouraging discouraging you from solo stickers what I'm going to show you is how all of these problems that you might have against solo staking they have Solutions so how do we solve for problem number one economies of scale well there are Cooperative models we're missing logos here this is a disaster um where uh so Cooperative models lsds and DVD how do we solve for economies of scale rocketpool with rocket pool for example or with any lsds what you can do is you can leverage your execution layer and consensus layer to have more than one that your solo Staker validator key so they reduce the economy barrier of Entry you only need four eth for setting up a validator on Steakhouse and you need eight East to setting up a validator on rocketpool so all of a sudden you can run a lot more validators on the same operator Hardware so you have more economies of scale yourself now that you're worried about uptime not a problem you have distributed validator technology DVT meaning that you can split the key the validator key between different machines between different people different like me you whoever is running an operator and we can create kind of like a multi-sig of validators a validator is also a multistige so we only need three node operators out of four or five that to be online in order for this validator to continue operating at basically 100 uptime okay so LSD and DVT we have like a bunch of them we have rocketball we have uh steakhouse which the logo has somehow disappeared and then we have a lot more in test net we have Stig wise we have Lido V2 yeah Lido which like it's right now is a big evil creature that is centralizing all the staking well they're actually trying really hard to decentralize themselves and they're doing that through Lido V2 and you'll be able to run you as normal people will be able to run a validator for Lido and that's pretty cool um and then we have also dvts we have SSV Network we have oval we have Diva which is an in-between between LSD and DVT it has both parts and all of this you'll be able to run it in your machine and also in your dab node okay economy is a scope the logo has disappeared so you but there's more things so another way to solve for economies of scale is economies of scope what are economies of scope things that you can run on top of the same machine taking advantage of the deal already running a full node what what else can you run that brings you extra revenue for example there's power pool power pool is an automation Network much like the one that we had here from chain link there we had a we had a workshop before and it is also an automation Network and it allows you to basically run a keeper node that monitors the node that also exists locally because we're running a validator and then you trigger certain automations and then you get paid an eth for it so you can get extra revenue from running a full node without even having a validator so the revenue that you can win I wouldn't recommend it right now to do it if you're not running a validator because the revenue that you can win it's probably not worth the infrastructure costs of running a full note but it's a really good top up for if you're already running a validator setup foreign as well it's so weird um I made a chosen here for some reason I'm gonna try something try to go back but I'm not gonna throw your laptop like this sorry about that yeah no not working shame um we're gonna go back to the previous one okay um the reason why I want to show you this is because then I want to show you a live demo of how to run Cloud Gators and I can only do that from my laptop now anyway so problem number two problem number two was Mev how can a solo sticker run Mev or take the best advantage of meb1 why is maybe a centralization problem now imagine how many blocks does a normal solar sticker propose or a validator proposed per year about six about six blocks and how many of those have how many blogs in general have a huge Mev reward I'm talking about more than five each on Meb very little very little they're very very special blocks they don't happen a lot so how what are the chances that you as a solo sticker have of getting one of these blocks again very little very little but uh staking pools or exchanges or big staking providers they actually have a natural smoothing effect which means that if they since they have so many validators it's very likely that some of them will get these super Big Blocks these Lottery blocks as we call them and these Library blocks actually get smoothened out by all of the rest of the validators that are there so the average reward for Meb for a pool for somebody that's pulling their validators is actually higher than a solo Staker because they're dividing these Lottery blocks against all the people so we can build a smoothing pool for solo stickers and that's what we have done uh we have built a smoothing pool for solid stickers we're testing that we're testing it now in in Gurley and if you have Trader validators or go early validators for somebody who is taking over there maybe you have a Prater validator as well and please come and check it out it's a it's Mev the other one that will never work right so um we can create a smoothing pool for validators that runs with all of the that all of the you as a solar Staker you decide to put your Mev rewards into that smart contract and the smart contract keeps all the accounting so if we're a hundred of us and somebody gets a block of a hundred each we all get one eighth together thank you very much um so this moving pool basically distributes the rewards of many validators across everybody so we can have access to these higher rewards that naturally happen on big providers like Lido and staking and everything and I wanted to show you as well the MVP smoothing pool but for some reason we can't um so voila the last thing is that if you want to win one dap node one of these machines where you can run all of your staking setup go check hopernet on um uh on Twitter and go check crypto Canal on Twitter because there are Clues there there are clues for a giveaway and you'll find these Clues and then you have to find a guy with a backpack with locks you learn how to open these locks the top note is inside so go check out hoppernet or cryptocanal and you can win that dab node if you find this guy find a code of the toolbox and you'll get one of these machines to go home now after these disastrous technical results you might be left with more questions than answers because I couldn't show you anything so please feel free to message me either on Twitter or the dabnode account or enter the Discord and see what the heck is this top note thing about and how it can help you be part of the centralizing ethereum of running ethereum itself owning a piece of the protocol and getting access to all of this amazing world of rewards that for that guy over there was not enough because you know six percent is not enough thank you very much [Applause]