📄️ Activation Queue
Definition: The Activation Queue is a waiting period for validators before they become active and participate in network consensus. This queue is necessary to manage the influx of new validators and maintain network stability, governed by the churn limit which dictates the number of validators activated in each epoch.
📄️ Address
Definition: An address is a 42-character hexadecimal string derived from the last 20 bytes of the Keccak-256 hash of the public key. It serves as a unique identifier that allows users to send and receive ETH and tokens, and interact with smart contracts on the Ethereum network.
📄️ Attestation Rewards
Definition: Attestation Rewards are earned by validators for successfully attesting to the validity of a block. Validators vote on the correctness of blocks, and these attestations contribute to the consensus process, helping to secure the network and ensure the integrity of the blockchain.
📄️ Attestation
Definition: Attestation is the process by which validators verify and vouch for the correctness of a block. Every epoch, validators propose attestations that represent their view of the blockchain state, including the most recent justified block and the first block in the current epoch. Attestations are critical for the network to reach consensus and finalize blocks.
📄️ Base Fee
Definition: The base fee is the minimum price per unit of gas for a transaction to be included in the blockchain. It fluctuates depending on network demand, ensuring the blockchain remains at target capacity.
📄️ Block Proposal Rewards
Definition: Block Proposal Rewards are earned by validators when they successfully propose a new block that is added to the blockchain. These rewards compensate validators for the computational effort and costs associated with creating and broadcasting new blocks, which are critical for the ongoing operation and security of the network.
📄️ Block
Definition: A block in blockchain technology is a data structure that aggregates a set of transactions, along with additional information, into a single, cryptographically secured unit. Each block contains a reference (hash) to the previous block, forming a chain of blocks, hence the term "blockchain." Blocks are created through a consensus process among network participants (like miners in Proof of Work or validators in Proof of Stake systems) and once validated and added to the blockchain, they become an immutable part of the ledger history.
📄️ Consensus Client
Definition: A Consensus Client is responsible for the Proof of Stake (PoS) consensus mechanism, managing the state of the blockchain, validating transactions, and proposing new blocks. It works alongside the Execution Client to maintain the blockchain's integrity and security.
📄️ Consensus Layer
Definition: The Consensus Layer is the component of a blockchain responsible for achieving consensus on the state of the network. It operates using a Proof of Stake (PoS) mechanism, where validators stake to propose and attest to blocks. This layer is crucial for the network's security, coordinating validators and ensuring the integrity and finality of transactions.
📄️ Consensus
Definition: Consensus in blockchain technology is the process used to achieve agreement on a single state of the network among distributed nodes. In Ethereum, the consensus mechanism ensures that transactions and blocks are valid and agreed upon by all participating nodes, thereby maintaining the blockchain's integrity and continuity.
📄️ Epoch
Definition: An epoch is a specific period during which a set of activities and processes are completed on the network. It is a unit of time measured in slots, with one epoch in Ethereum consisting of 32 slots & in Gnosis of 16 slots. During an epoch, validator nodes perform actions such as proposing and attesting to blocks, and at the end of each epoch, the network's protocol processes these activities to update the state of the blockchain, including validator rewards and penalties.
📄️ ETH (Ether)
Definition: ETH (Ether) is the native cryptocurrency of the Ethereum network, used to pay for transaction fees, computational services, and as a store of value. As the fuel for the Ethereum blockchain, it's required to perform any operation or execute smart contracts on the network.
📄️ Ethereum Node
Definition: An Ethereum node is a computer equipped with the necessary software to participate actively in the Ethereum network. It handles transaction and block validation but does not inherently engage in financial operations such as staking, which is reserved for specific types of nodes like staking nodes. Running your own node offers direct access to the Ethereum network, enabling the use of services built atop Ethereum that require an Ethereum Client RPC (Remote Procedure Call) endpoint for direct communication between applications.
📄️ Ethereum Staking Penalties
Definition: Ethereum Staking Penalties are the consequences that validators on the Ethereum Proof of Stake (PoS) network face for actions that negatively affect the network's integrity and security. These penalties are designed to discourage malicious or negligent behavior and ensure the stability of the blockchain. Penalties can range from minor reductions in staking rewards for being offline (inactivity leaks) to significant portions of the staked ETH being slashed for serious offenses like double signing or similar attacks.
📄️ Ethereum Staking Rewards
Definition: Ethereum Staking Rewards refer to the incentives received by validators participating in the Ethereum Proof of Stake (PoS) system. Validators are network participants who have staked their ETH to activate their validator keys, being able to act as a validator for the network. As validators, they propose and attest to blocks to help secure the network and process transactions. In return for their service and the risks involved, including the locking up of their assets and potential penalties for misbehavior, they receive rewards in the form of additional ETH. The size of these rewards depends on the total amount of ETH staked on the network and the validator's performance.
📄️ Ethereum
Definition: Ethereum is a decentralized, open-source blockchain system that features smart contract functionality. It provides a platform for building and running decentralized applications (dApps) and uses Ether (ETH) as its native cryptocurrency. Ethereum's notable for its ability to execute programmable transactions through smart contracts, which are self-executing contracts with the terms of the agreement directly written into code.
📄️ Execution Client
Definition: The Execution Client handles the execution of transactions and the computation of smart contract interactions. It applies the transaction's state changes to the blockchain and ensures that these changes comply with the rules of the protocol.
📄️ Execution Layer
Definition: The Execution Layer is responsible for executing transactional logic and maintaining the network's state. It includes processing transactions, executing smart contracts, and managing the Ethereum Virtual Machine (EVM). This layer works in tandem with the Consensus Layer to ensure the correct execution of blockchain operations.
📄️ Exit and Withdraw
Definition partial and full.
📄️ Fork
Definition soft forks, which are backward-compatible changes, and hard forks, which are not backward-compatible and require all nodes to upgrade to the new protocol.
📄️ Full Withdrawals
Definition: Full withdrawals on the Ethereum blockchain involve the process of completely exiting a validator from its duties on the Beacon Chain, allowing for the transfer of the entire staked balance (32 ETH and any accrued rewards) to the execution layer. This is initiated by the validator through a "voluntary exit" action, which does not require gas fees but permanently ends their participation in validation.
📄️ Gas
Definition: Gas is the unit of measure for the amount of computational effort required to execute operations like transactions and smart contract interactions. It ensures resource-intensive operations are paid for, thereby preventing spam and network abuse.
📄️ Gnosis Node
Definition: A Gnosis node is a computer running the Gnosis client software, participating in the Gnosis Chain, which utilizes the same core architecture as Ethereum. It is part of a decentralized peer-to-peer network, validating transactions and blocks, and maintaining the integrity of the Gnosis blockchain. Gnosis nodes operate under a Proof of Stake (PoS) consensus mechanism, allowing for active participation in block proposals and attestations.
📄️ Gnosis Staking Penalties
Definition: Gnosis Staking Penalties are imposed on validators for actions that could harm the network's integrity or for failing to fulfill their validation duties. Penalties include inactivity leaks for offline validators and slashing for serious offenses like double signing or similar malicious activities.
📄️ Gnosis Staking Rewards
Definition: Gnosis Staking Rewards are the incentives received by validators for their participation in securing and validating the Gnosis blockchain network. Validators stake GNO tokens to become active participants in the network's consensus process and earn rewards for actions such as proposing and attesting to blocks.
📄️ Gnosis
Definition: The Gnosis Network, formerly known as the xDai Chain, is a blockchain platform designed for fast, inexpensive, and secure transactions. It operates as a separate layer on top of the Ethereum mainnet and supports staking mechanisms where participants can stake tokens to secure the network and validate transactions. Staking on the Gnosis Network involves running validator nodes or delegating tokens to validators to earn rewards. This process helps maintain the network's integrity and performance by incentivizing participants to act in the best interest of the ecosystem.
📄️ Gwei
Definition: Gwei, short for gigawei, represents a billion wei, or 1/1,000,000,000 of an ether. It's the most commonly used unit for measuring gas prices on the Ethereum network.
📄️ Inactivity Leak
Definition: Inactivity Leak is a mechanism designed to prevent network stagnation due to a large number of validators being offline. If the network fails to finalize blocks for an extended period, an inactivity leak gradually reduces the staked ETH of all inactive validators. This penalty encourages validators to remain online and active, as continued inactivity leads to increasing losses of staked assets over time. The mechanism ensures the network remains resilient and can recover even if a significant proportion of validators goes offline.
📄️ Max Priority Fee
Definition: The Max Priority Fee is the maximum amount a user is willing to pay as a priority fee (tip) to miners or validators. It represents the user's willingness to pay extra to expedite their transaction. When the transaction is included in a block, any difference between the max priority fee and the actual priority fee is refunded to the user.
📄️ MEV Boost
Definition: MEV Boost is a protocol that allows validators to connect with external MEV-relay networks to enhance their MEV opportunities. It acts as a middleware between validators and block builders, enabling validators to produce blocks with higher MEV rewards without directly participating in MEV strategies.
📄️ MEV (Maximal Extractable Value)
Definition: MEV refers to the maximum profit that Validators (Proof of Stake) / Miners (Proof of Work) can make by strategically including, excluding, or reordering transactions within the blocks they produce. It originates from the ability to manipulate transaction order to capture price differences and arbitrage opportunities on the network.
📄️ Non-Finality
Definition: Non-Finality in blockchain refers to the state where transactions or blocks are not yet confirmed as irreversible and permanent. In blockchain systems, finality means that once a block is added to the chain, it cannot be altered or removed. Non-Finality occurs in situations where there is uncertainty about a block's permanence, potentially due to network forks, consensus failures, or other disruptions. This state can lead to risks such as double-spending, where the same digital asset could be spent more than once.
📄️ Partial Withdrawals
Definition: Partial withdrawals in the Ethereum blockchain allow validators to transfer the ETH rewards that exceed the 32 ETH staking requirement from their validator's account on the Beacon Chain to the execution layer. This process is automatic and does not require active management by the validator or node operator, nor does it incur gas fees.
📄️ Priority Fee
Definition: The priority fee, also known as a tip, is an optional extra amount that users can pay to validators to incentivize faster inclusion of their transaction in a block.
📄️ Private Key
Definition: A private key in the context of blockchain and cryptocurrency is a secret alphanumeric code that proves the ownership of a blockchain address and allows access to the assets stored in that address. It is used to sign transactions, ensuring the security and integrity of the assets and confirming the identity of the holder. The private key must be kept confidential and not shared with anyone to prevent unauthorized access to the assets.
📄️ Public Key
Definition: A public key is part of the cryptographic key pair used in Ethereum to secure transactions and control access to an Ethereum account. It is derived from the private key and can be shared publicly to receive ETH or tokens. The public key is used to create the Ethereum address.
📄️ SSV (Secret Shared Validator)
Definition: Secret Shared Validator (SSV) refers to a type of Distributed Validator Technology (DVT) that enables the splitting of a validator key among multiple nodes, known as operators. This setup allows for the distributed control and operation of an Ethereum validator across multiple non-trusting nodes, enhancing security and fault tolerance.
📄️ Seed Phrase
Definition: A seed phrase, also known as a mnemonic phrase, is a series of words generated by your cryptocurrency wallet that gives you access to the crypto associated with that wallet. It acts as a master key to recover and access all your Ethereum assets and associated addresses.
📄️ Sharding
Definition: Sharding is a scalability strategy used in blockchain technology to enhance the processing capacity of a network. It involves dividing the network's database into smaller, more manageable pieces, or "shards," each of which can process transactions and store data independently. This parallel processing capability significantly increases the network's throughput and efficiency.
📄️ Slashing
Definition: Slashing is a punitive mechanism in Proof of Stake (PoS) networks like Ethereum 2.0, designed to maintain network security and integrity. Validators staking their ETH can be slashed, meaning they will lose a portion of their staked ETH as a penalty for actions that harm the network's operation and are removed from the validator set, preventing them from participating further in the consensus process. This can occur due to malicious actions like double signing (using the same validator key with two different nodes) or due to negligence, when migrating.
📄️ Slot
Definition: A slot is a time interval in a blockchain network during which a validator has the opportunity to propose a block. In Ethereum, a slot is the fundamental time unit, lasting approximately 12 seconds, and each epoch is composed of 32 slots. In Gnosis it last only 5 seconds, each epoch being composed of 16 slots. Not every slot will necessarily see a new block proposal, depending on the network conditions and validator participation.
📄️ Smart Contract
Definition: A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. It automatically enforces and executes the terms of a contract based on predefined rules and conditions on the Ethereum blockchain, facilitating, verifying, or enforcing the negotiation or performance of a contract digitally.
📄️ Staking
Definition: Staking in involves locking up a certain amount of currency as collateral to participate in a network's consensus process as a validator. Stakers are usually rewarded for proposing new blocks, attesting to existing blocks, and helping maintain the security and integrity of the blockchain. It's a fundamental component of Proof of Stake (PoS) mechanism.
📄️ Sync Committee Rewards
Definition: Sync Committee Rewards are given to validators who are selected to be part of a sync committee. These committees assist light clients in staying up-to-date with the state of the blockchain, ensuring the network remains accessible and secure for all participants.
📄️ Sync Committee
Definition: A Sync Committee is a group of validators in the Ethereum network that is responsible for helping light clients (such as mobile wallets or lightweight nodes) stay synchronized with the state of the chain. The committee produces signatures that light clients use to verify the chain's state without needing to process every block, thus enabling more efficient and reliable synchronization. For this duty the selected group of validators will earn additional rewards in the form of Sync Committee Rewards
📄️ Transaction
Definition: A transaction refers to the signed data package that stores a message to be sent from an externally owned account to another account on the blockchain. Transactions include token transfers, smart contract interactions, and changes to the state of the blockchain.
📄️ Validator Account
Definition: A validator account in Ethereum refers to an entity that participates in the blockchain's consensus mechanism. It is associated with a validator key and owing a validator account makes one responsible for proposing new blocks and attesting to the validity of existing blocks and central to maintaining the network's integrity and security.
📄️ Validator Client
Definition: A Validator Client refers to software that enables a node to participate in the network's consensus mechanism by proposing and attesting to blocks. Validators are crucial for the security and functionality of the blockchain, as they are responsible for signing verified transactions and newly created blocks in exchange for staking rewards.
📄️ Validator Key Deposit
Definition: A key deposit in the context of Ethereum & Gnosis staking refers to the initial amount of ETH / GNO required to activate a validator on the respective blockchain. This deposit is made to the staking deposit contract and is associated with the validator's public key, enabling the network to recognize and activate the validator. The deposit serves as a stake in the network, signifying the validator's commitment and serving as collateral that can be slashed in case of malicious actions.
📄️ Validator Key
Definition: A validator key is essential for participants who want to become validators. It consists of a public key, used to identify the validator within the network, and a private key, used to sign blocks and attestations. The validator key must be securely managed, as exposure can lead to slashing, where the validator's staked ETH is penalized for malicious or contradictory actions.
📄️ Validator
Definition: Validator can have a multiple meanings, depending on the context referring to the software, keystore files and the account used for staking. The validator software / validator client is the application that runs on a computer or node, performing tasks such as proposing new blocks and attesting to block validity. The validator account, on the other hand, represents the identity of the staker in the network, used to sign transactions and attestations, proving participation and agreement with the current state of the blockchain. A validator key in refers to the cryptographic keys used by a validator to sign blocks and attestations, proving their participation and agreement with the network's state.
📄️ Wei
Definition: Wei is the smallest denomination of Ether, the cryptocurrency of Ethereum. One ether is divided into 1,000,000,000,000,000,000 wei.