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Google Cloud Becomes Validator on Polygon's PoS Network

On September 29, 2023, Google Cloud made a significant move by joining Polygon’s Proof of Stake (PoS) network as a validator. The development was confirmed by both Polygon Labs and Google Cloud Singapore through their respective Twitter accounts. Google Cloud will utilize the same infrastructure that powers its flagship services, such as YouTube and Gmail, to contribute to the security and governance of Polygon’s network.

Google Cloud’s entry into Polygon’s PoS network is a milestone for multiple reasons. First, it adds a layer of institutional credibility to the network, which already boasts over 100 validators. Google Cloud is renowned for its high-quality, secure, and reliable services, making it a valuable addition to the validator set. This is particularly important for enhancing the security protocols for Heimdall, Bor, and Polygon PoS users.

In the Polygon PoS network, validators are entities that produce new blocks and confirm transactions. They play a crucial role in maintaining the network’s integrity and security. Validators are chosen based on the amount of MATIC tokens they have staked as collateral. The more MATIC staked, the higher the chances of being chosen to validate transactions and create new blocks.

Polygon’s PoS network has a diverse range of validators, each contributing to the network’s collective security and governance. According to the latest data from Polygon’s staking technology website, Staked leads with 47,714,780.75 MATIC staked. Infosys follows with 20,927,642.45 MATIC. Other notable validators include Ethermon Validator with 21,413,514.21 MATIC and Worldpay from FIS with 14,524,984.72 MATIC staked. Google Cloud’s stake is comparatively modest but significant, with 25,391.67 MATIC staked at a commission rate of 100%.

Polygon Labs has provided a dashboard accessible at Polygon’s staking technology website. This dashboard allows anyone to monitor the performance and checkpoint signatures of all validators, offering a transparent view into the network’s operations.

Ethereum co-founder Vitalik Buterin Proposes Signature Reduction

Vitalik Buterin, Ethereum’s co-founder, recently proposed a significant change to the Ethereum blockchain’s proof-of-stake (PoS) system. The core of his proposal is to reduce the number of signatures that validators must process. Currently, Ethereum’s PoS mechanism involves around 895,000 validators processing approximately 28,000 signatures per slot, which results in a heavy load on the network.

The Need for Change: Balancing Decentralization and Efficiency

This high number of validators and the associated signature load come with major technical downsides. It limits quantum resistance, complicates forking, and challenges scaling signatures through zero-knowledge proofs (SNARKs). Moreover, the high minimum of 32 ETH for becoming a validator remains prohibitive for many, limiting widespread participation.

Buterin suggests that reducing the signature requirement to about 8,192 per slot, down from the current 28,000, would offer several benefits. It would simplify the consensus mechanism, make the blockchain more quantum-resistant, and maintain a high total of slashable ETH (1-2 million ETH), a mechanism to enforce good behavior among validators.

Exploring Alternative Approaches: Decentralized Staking Pools and More

Buterin outlined three potential approaches for this change:

Decentralized Staking Pools: This method involves increasing the minimum ether required for staking, encouraging smaller validators to form pools. This shift would reduce the number of individual validators.
Dual-Layer Staking System: A ‘heavy’ layer would require a higher ETH stake (4,096 ETH) for participation in finalization processes, while a ‘light’ layer would have no minimum requirement, creating a balance between security and accessibility.
Rotating Validator Set: This approach would involve a rotating set of 4,096 validators for each slot, adjusting the set during each slot to ensure network safety.

Addressing Security Concerns

Buterin also pointed out the limitations of the committee-based security model used in other blockchains. This model, which randomly selects a group of validators for each slot, lacks accountability in the event of a 51% attack. Ethereum’s current system, which imposes severe penalties for such attacks, is effective but might be excessively punitive. A balanced solution maintaining high slashable Ethereum while making concessions on validator accountability is needed.

Fantom Foundation Lowers Staking Threshold to 50,000 FTM

The Fantom Foundation, overseeing the layer-1 blockchain network Fantom, has implemented a significant reduction in its validator staking requirement. This change, confirmed by the foundation in a January 15 post and following a governance vote concluded in June 2023, marks a strategic shift in Fantom’s approach to network security and decentralization.

Previously set at 500,000 FTM tokens, the staking threshold for validators on the Fantom network has been dramatically reduced by 90% to 50,000 FTM, equivalent to approximately $19,500 at current market rates. This move aims to enhance network security by increasing the number of validators, thereby making it more challenging for malicious actors to compromise the network.

The rationale behind this decision is grounded in the principle that a higher number of validators strengthens a decentralized network’s resilience against attacks. Validators on the Fantom network play a crucial role by bundling transactions and sharing them with other validators, with finality achieved once a consensus is reached by at least two-thirds of them. The foundation asserts that this increase in validators will expedite transaction validation without compromising network speed or security, maintaining the network’s 1-2 second time to finality.

In addition to enhancing security, this reduction in the staking requirement democratizes access to validator status, allowing more participants to contribute to the network’s operation. Despite this change, the foundation reassures that the network’s performance will not be impacted negatively, as the security and efficiency of transaction validation remain proportional to the amount staked by validators, rather than the sheer number of validators. Therefore, a larger validator with a higher stake holds equivalent power to several smaller validators with lesser stakes.

This initiative by the Fantom Foundation is not the first of its kind. The discussion around lowering the minimum FTM requirement for running a node began as early as February 2022. As of the latest data, Fantom’s network comprises 58 validators, a figure modest compared to larger networks like Ethereum, which boasts over 1.1 million validators.

Despite the positive implications for network security and decentralization, the recent changes have not significantly impacted FTM’s market performance. As of this writing, FTM’s price has seen a decline of 1.4% on the day, trading at $0.389. This decline is part of a broader trend, with FTM prices down 89% from their October 2021 peak.