MetaMask and Consensys Staking: Validator Staking

Pinning can be a complex process, but with the addition of Authenticator to the MetaMask portfolio, the platform is taking the lead in making it simple.

Bypassing the complex software and hardware requirements typically associated with validator nodes, this new approach allows users to participate in the consensus and security mechanisms of the Ethereum network.

In an insightful discussion with Consensys Staking Product Manager Matthieu St. Olive and MetaMask Product Manager Abad Mian, we were given a glimpse of the future of staking.

Join us as we explore the unique partnership between MetaMask and Consensys Staking!

1. Can you start by introducing yourself, detailing your role at MetaMask and your involvement in the Authenticator Staking feature?

Abad: I'm Abad Mian, a product manager on the Metamask team who built Consensys Staking together with Matthew St. Olive, a product manager on Consensys Staking.

We are excited to talk about MetaMask and Consensys Staking. Please note that the information provided is for informational purposes only and should not be construed as legal or investment advice.

Most of what we are talking about is security, decentralization and the efficiency of the stake and the opportunities to participate through Consensus and Metmask. Any decisions based on this information are at your own risk, and you are advised to seek professional advice for legal or investment matters.

2. Can you explain the concept of validator staking in the MetaMask portfolio and how it simplifies the onboarding process for users?

Abad: Validator Staking allows MetaMask clients to stake their ETH and receive rewards by running their own validation nodes without worrying about complex technical requirements. Managing node hardware and software while maintaining robust performance can be difficult, but authentication stacking solves this problem.

3. Can you tell us a little more about the introduction of validator staking led by the two Consensus product groups: MetaMask and Consensys staking?

Abad: The Consensys Staking team, led by Matthieu Saint-Olive, has one of the best track records in the industry in running high-performance verification nodes. They've been in this game as much as anyone since the Beacon chain was founded, and they've never been cut.

Some of the larger participants in the staking ecosystem even help them run their own validator nodes. We are excited to extend these capabilities to MetaMask users.

Mathieu: Staking is the essential piece of Ethereum. It is essentially a compensation to provide decentralized security and data authentication.

This method allows the network to agree on which blocks to produce in a decentralized manner (reading, staking is data validation, not investment) and, therefore, supports the whole wave of licenseless Web3 innovation.

Through staking, Ethereum provides economic incentives for network participants to contribute to the consensus and security of the network, resulting in self-perpetuating positive cumulative network effects.

In agreement, we believe it is important to contribute to making Ethereum more secure by 1) helping more people to participate and 2) making Ethereum more decentralized by providing an alternative to centralized staking solutions. This is what led us to launch Validator Staking in MetaMask.

4. Security is paramount in cryptocurrency staking. Can you discuss the security measures and certifications that Consensys Staking brings to MetaMask users?

Mathieu: Consensys Staking has a track record of running Ethereum validators since the launch of the Beacon Chain in December 2020, with Phase 1 performance, over 1 million ETH staked to date, and no deceleration events.

Our infrastructure and processes are designed to minimize the rewards and risks experienced by our users. In terms of security measures, there are 4 elements that I would like to mention:

Certifications: Compliance is ISO 27001:2022 certified, a security certification covering the safety of our people, technology and processes. Additionally, Consensys Staking is also SOC2 Type 2, which audits our internal controls and systems related to security, availability, process integrity, confidentiality and data privacy. Hacking Prevention: We protect our users from hacking through multiple tools and processes, including never deploying the same authentication key to multiple locations or multiple authenticators and using Web3 Signer hacking protection (read more about hacking here). Beyond cutting, we have 24/7 monitoring, alerting and site reliability engineers to ensure our verifiers are always performing up to expectations. No single point of failure: our infrastructure is spread across 2 clouds (Azure, AWS), 6 different regions (2 in America, 2 in Europe, 2 in Asia), 2 consensus clients (Teku, Lighthouse) and 2 performance clients. (Su, Get) Smart Contract Security: To power MetaMask's validator staking product, we are using a smart contract that has been fully audited by multiple Tier 1 auditors, including Consensys Diligence and the Bug Bounty Program. We also have tools and processes in place to monitor and alert on any suspicious activity on smart contracts.

5. MetaMask's authenticator feature maximizes convenience without compromising privacy. How does this balance benefit users, and why is it necessary to give platforms such autonomy?

Abad: Striking the right balance between convenience and autonomy can be difficult, but we believe it's important to make sure the solution you choose gives you control over the key functions of your validator.

Mathieu: Self-preservation is a core principle of MetaMask and Consensys. It has many advantages but also brings new challenges. Finding the right comfort level without compromising autonomy is critical to making Web3 a success.

6. Ethereum's transition to a proof-of-model via ‘The Merge' has had some big ripples across the ecosystem. How exactly does the MetaMask authenticator fit into this evolving landscape, and what are the implications for network security?

Abad: We believe the decentralized nature of Ethereum is critical to its security, and features like Validator Staking help ensure that the Ethereum network's beacon chain cannot be bought by any party.

Mathieu: The merger was an amazing milestone in Ethereum's journey, which, among other things, reduced the carbon footprint of the network by 99.95% overnight (read about the merger here).

Initially, Consensys contributed to this transition by developing an open source consensus layer client (Teku) and a self-sustaining staking platform (Consensys Staking) in addition to the existing execution layer client (Besu).

By making Stats conveniently accessible to MetaMask users directly from their wallets, we are reaching a new milestone in helping network participants secure and reward the Ethereum network.

7. Ethereum staking can be very technical and out of reach for some. How does MetaMask's solution address these barriers, and what does this democratization mean for the future of shareholding?

Abad: Authenticator stacking means that many individuals who want to run their own nodes never have to worry about complex hardware or software requirements that are a barrier to entry.

Second, we've built an easy-to-understand UI that makes it easy to redeem, track, and redeem rewards in just a few clicks without complicated onboarding requirements. Together, these allow anyone with enough ETH to run their own verification node quickly and easily.

8. Results and rewards are the main attraction for stakeholders. Can you discuss how MetaMask and Consensys Staking improve rewards for users, and how this compares to the network average?

Mathieu: Ethereum validators earn rewards for proposing new blocks and verifying the validity of blocks proposed by other validators. As such, verifiers' rewards will improve as we reduce the number of missed confirmations and missed blocks. These are 2 important metrics that we monitor closely and continuously optimize.

Also, we are using our own MEV optimization to ensure that the blocks proposed by our validators generate the maximum MEV rewards for our users. In Q4 2023, the average reward rate of our validators was 10% higher than ETH.store, the network's average reward rate.

Although receiving rewards is a key incentive for user participation, it should not be forgotten that Ethereum is a means of verifying data.

We strive to contribute to the security of the network through diversity while continuously increasing the rewards of verifiers. We use multiple communication and execution clients across multiple cloud providers in multiple regions.

9. How has the community responded to MetaMask's authenticator staking?

Abad: The reception was amazing! We are very pleased with the feedback from the community and the amount of activity we have seen so far. And we're taking feedback seriously as we build our future roadmap.

10. How do you see equity in crypto evolving, and what trends do you predict for the coming years?

Abad: I wish I had a crystal ball! The biggest recent trends I'd recommend watching in the Ethereum sustainability landscape are (a) re-sustainability and (b) verifiable diversification, both in terms of (1) communication and execution layer client software. Difference between validators and (2) entities running validator nodes.

Mathieu: In the last few years, most new Layer 1 networks have decided to use share authentication as their authentication mechanism. To date, dozens of properties already exist to protect L1s. In the coming years, I see two trends worth watching, even if it's still early days.

The Emergence of Layer 2 Networks: Those networks are showing great interest in relying on the Ethereum Mainnet for security as it lowers transaction costs and speeds up transactions. So we can expect a lot of user activity and funds to move from the Ethereum Mainnet to those L2s, which leads to 2 questions that we are actively working on: How can users contribute to Ethereum shares when their funds are held on L2? How can we contribute to L2 security and decentralization? Emergence of Refactoring: Eigenlayer refactoring has attracted a lot of attention in the Ethereum community in recent months. Finally, the belief is that decentralized network architectures can be more granular than existing ones and rely on highly specialized components to streamline performance, communication, data availability, sequencing, conversations, and more. In a modular architecture, each function can be performed independently by different parties and networks, and each must be secure. The security of those units can be facilitated by resetting them in ETH.

11. What advice would you give to users who are new to staking or cryptocurrency in general when considering signing up for the Metamask portfolio?

Abad: Want to contribute to decentralization and network security while receiving rewards on your ETH without any technical complications? If so, strongly consider authenticator staking.

We love highly technical monoliths that manage their verifier hardware and software themselves, but we know this isn't easy for everyone, especially if you want to optimize your verifier's performance. MetaMask Authenticator Staking solves this problem.

12. Finally, beyond authenticator pinning, what other innovations or services can MetaMask users expect in the near future?

Abad: Our latest roadmap includes improvements to Vidator Staking that will make it easier to exit multiple validators with just a few transactions. Furthermore, we are looking for opportunities to further democratize the share of ETH for the majority of ETH holders below 32 ETH.

As our conversation with Abad Mian and Matthieu St. Olive draws to a close, it becomes clear that the verifiable statistics in progress at MetaMask is a critical step in making blockchain technology accessible to a wider audience.

In addition to simplifying staking, this feature represents a giant leap forward toward an inclusive, secure, and decentralized future.

A good example of innovation, verifiable staking with the help of Consensys Staking by MetaMask, removes the complexity of blockchain technology's barrier to participation.

It welcomes a new era of decentralized financial growth by inviting users from diverse backgrounds to participate in network security and reap the benefits.