FEATURES
Blackhole strives to be the most robust and decentralized staking solution, providing the greatest functionality for Operators and Stakeholders alike.
There are three methods for participating in Blackhole Staking:
Liquid Stakers can create staking incentives with Blackhole Staking without needing to lock their ETH.
To generate Staking Rewards, Liquid Stakers only need to keep their blkETH. They can also use it in DeFi for lending, bridging, and other purposes.
Compared to Ethereum's native staking, which necessitates locking 32\ without liquidity and operating hardware, this paradigm offers numerous advantages.
Users' money is never accessible to non-custodial operators. All ETH deposited is automatically staked by Blackhole Staking, which deposits it in Ethereum validators.
Additionally, Operators are unable to unilaterally request the withdrawal of funds from validators and never have access to the whole set of validator keys.
🤝 Staker Protection
Staking is a risk because ETH money may be lost entirely or partially if operators are unfriendly or offline.
Because collateral provided by Operators is committed to Stakers as compensation for any losses, Stakers in Blackhole are safeguarded against losses.
📈 Smooth rewards
Every day, Blackhole's LSTs aggregate all of the Staking awards produced by the network and recalculate awards. Compared to traditional staking, this offers returns that are smoother, more predictable, and have less volatility.
Utilizing its proprietary DVT, Blackhole Staking offers better risk management and performance.
Blackhole is immune to collusion attacks since all validator actions require the consensus signature of two-thirds of the committee's nodes.
Committees
Multi-Party Computation (MPC) is used to construct key-shares, ensuring that secret keys are never combined. This significantly lowers the possibility of hacking or losing private keys.
👨👩👧👦 Permissionless
Anyone can run a node or stake ETH with Permissionless Blackhole without needing any type of permission or approval.
🌎 Decentralized
Operating on a stochastically distributed sub-network of nodes, each Blackhole validator is a Distributed Validator.
In addition to having built-in Sybil protection methods, Blackhole aims to lower entrance barriers for Operators while fostering diversity and real decentralization.
🌳 Resilient
Owing to the characteristics of Blackhole's validator sets, reconstructing the entire signature representing the private key for every validator requires only two thirds ("n of m") of the signatures.
As a result, in the event of a partial validation failure, Blackhole validators will not interfere with the validation and will tolerate up to "m - n" failing nodes.
Because of this, Blackhole can withstand times when a number of nodes are unavailable, and safety procedures can securely regenerate DKG and bring the network back online.
❤️🔥 Network that heals itself
By ejecting failing Operators through secure resharing procedures, Blackhole's is able to restore the network's full liveliness even in the event of unforeseen failures, hacking, or censorship.
🚅 Efficient network
P2P networks are used by Blackhole for node discovery. Direct peer-to-peer communication takes place without the use of a "Blackhole blockchain". This minimizes single points of failure and cuts down on delays that could impair the performance of the validation.
Blackhole validators can perform comparably to the most efficient Ethereum validators thanks to their innovative consensus mechanism.
🔢 Blackhole Staking Mechanisms
When possible, Blackhole Staking uses cryptography to guarantee the accuracy of actions (such signatures), and when cryptography is insufficient, it employs economic incentives to encourage Operators to remain online. This guarantees that incentives and security are fully aligned.
Blackhole is being developed to reduce the amount of trust that must be given by either party by offering:
a robust cryptographic model to safeguard staking activities.
Ethereum collateral to guard against possible losses.
Mathematical proofs for reports and computations requiring no prior information.
🪨 Unchangeable, non-upgradable contracts
Blackhole's smart contracts are designed to be non-upgradable and immutable in order to reduce the number of possible attack avenues. In this sense, Blackhole is independent of human assistance.
The goal of Blackhole Staking is to require as little changes as possible, if any at all.
As a result, blkETH can be used by all users as a reliable foundational layer for Defi's future.
💬 Unaffected by censorship
Following the principles of the Ethereum community, the Blackhole Staking Protocol's architecture has been created to be resistant to censorship
🛂 No trusted committees
Committees, multisigs, or guardians have the authority to access funds, overturn protocol procedures, or influence financial decisions in the majority of staking systems. This creates risks; for instance, a committee for rewards oracles could band together to report fictitious awards and manipulate pricing.
The Blackhole Staking Protocol's architecture substitutes elements such as manipulatable Zero-Knowledge Proof (ZKP) oracles for trusted groups.
💠 The Ethereum expansion that we need
In the end, the Blackhole Staking Protocol functions as a software add-on for Ethereum, offering permissionless methods for more effective and decentralized staking.
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