Lefteris Karapetsas - Beyond Solo Staking: Integrating local tools for enhanced mgmt and accounting

Transcript

we're going to go ahead and uh begin there I apologize for the the technical um technical delay there but we're actually just right back on time here so we've got two more speakers to go before we we break for lunch um our first Speaker here um is lettery who is the founder of rot key Solutions and you're going to be speaking us today about the topic of Beyond solo staking hey hello everybody um again sorry for the technical problem uh I just installed L on a new computer yeah things when you open another the monitor yeah I should have checked that before anyway so uh for those of you who don't know me I'm leis I've been in AUM since 2014 I work for the foundation um generally in um the solidity compiler um

the C++ client later made the Dow along with the guys that Slug it so sorry for that um uh and participate in the hug afterwards uh the the cleanup and the ATC all that stuff then I worked in l2s um in Ryden what is basically Bitcoin so lightning Network to ethereum is what Ryden was supposed to be for um so sorry black for Bitcoin um rting was supposed to be for ethereum and I found it rotki which is um uh local portfolio tracking and accounting tool so whenever I mentioned sing to my

mother she's always thinking that there's a solo guy just sitting alone eating a steak it's like it's not such a sad picture it's actually something that we should all try to be doing it's I hope that many of you here are um working on solo stating so all you need to do is maintain a local machine just like this Intel nuke here um you need to just run an execution a consensus client and that consensus client should have a validator inside you don't need to buy liquid saking uh derivatives you just need to self-manage your key store and your validators everything on on this um own local machine um the benefits um you get all the fees right U there is no protocol fees there is no um operator fees um

there is a possibility for a high juicy me block uh which almost always seems to go to Le for some reason I don't know like it's it's never like every time I see these tweets oh yes maybe my no never um you get paid in um and not some other um derivative token you have control and full Freedom over your stake uh you're not exposed into protocol and contract risk we haven't seen any problems yet with lsts but who knows uh and it's good for the network like if if you ever heard super fees talk about it yes decentralization decentralization decentralization please run uh solo uh validators there are Dropbox of course it's not all Rosy um yeah someone at a k

there it needs occasional maintenance work um like you can see this is a a St that I run at some point it needs you know like cleaning um depending on jurisdiction you need to um consider tax implications um so in some jurisdictions it's a bit harder for you to run your own node because it makes you um have to have a company uh but also the lsts have their own um problems in some other jurisdictions you need to generally consider the tax accountant before doing anything with stating and all the dangers of self custody like if the whole thing cutch is on fire and you don't have anything else um any backups anywhere else then you're

screwed um so as I said staking was meant to be done using your own machine from your own home right um but why stop there why not just do more stuff from our machine that we are R locally um why just you know use the Staker have the the solo staking set up there and and then just take everything through ether scan and do your portfolio tring through zapper and do your accounting through accounting I mean you have the the machine there why why not just use it the the the reason that you should not just be using these other centralized tools is that they are everything is a centralized software as a service tool um that has data that they keep and it can be sold or it can

be leaked in the uh if you assume No No Malice at all still things can leak and you don't own anything so like for an accounting tool that has data for you on the cloud it's not yours it can cease to exist and you can lose access to this data and this is not just fear mongering you know um like Amin um and freder in two different cases had their accounting uh data from whatever tool they were using which they're not naming here um just die and you know they go out of business uh they lose access to their um um to their data that they spent probably months painstakingly um you know modifying and making sure that everything adds up and then boom this

software as a service dies and you lose all your data um so let's not use DBS uh in um you know quote unquote uh the fake DBS as I like to call them is just centralized Ser architecture everything is stored remotely there is complete lack of privacy uh lack of control and you're at the mer of data leaks and hacks so when we started ethereum this is not what we envisioned as a decentralized app like just everything is on a server that server actually talks to the chain and then it it's basically back to the web to model they say it's you know your D but the data is all all all all ours

so some people will say but no left we have a privacy policy or I've checked the privacy policy it says that um uh they they they respect my privacy so it should be fine right um have you ever read privacy policies to see what they say like this is just one from a accounting tool it basically explains to the user that they will track everything that is legally possible uh and just keep all this data some uh you know like then then you you use this app and then you have like uh the pain Harold say that you know U they're asking about my stating setup right now after using this app um of

course not everybody is malicious and not everybody is out to get your data that's definitely true but we should just remove the need for for um privacy policies remove the need for trust and um it's not that someone wants to do harm but an intern with DB access can just open it to the public they can just delete it by mistake We should strive to use um apps that um well cannot be evil so let's build apps that cannot be evil over uh apps that U just you have to trust not to be even um so this brings me to local fair software which is things that people should run also on their node on their own machine um so what is local fair software um it's something that for the

older guys in here basically it means software uh after the cloud started and all the cloud software became think uh there is some Engineers uh that made this seminal paper uh about local fair software you own your data in spite of the cloud um and the idea here is that so this is the the author the main author we still build software um that should keep the majority of the functionality local um so all the data is stored locally um you design um the the software having security and privacy is as Paramount of course we are not in an offline world everything is

interconnected you will use a network there will be a network connection uh but it's not necessary to run the app and it should not be necessary for the main functionality so like I don't know you don't have every single uh keystroke be a round trip to a server so everybody that runs um a solo sing setup is running something like this or something bigger right so this is the Intel nuke as I said this baby can fit a lot of local apps for your web three Journey not just te and nethermind or GI or Lighthouse so you can uh wait did I skip on wow yeah I actually skipped on uh so yeah you're running um all the clients right

gith Lighthouse Nimbus arigon nethermind loar pris and te but you can learn a lot more um either buy your own setup like just set up a Linux uh server with whatever you want or you can use a DB node for example SC here where you can easily install any apps that you want in your um in your node not only stating apps or uh clients but also like something like Rod key or U mysterium which is a P2P Marketplace for traffic so the idea that I'm trying to imprint into the audience is that we should just use more local tools so try to replace centralized Explorer like I

scan here is the withdrawals for a particular um validator with something like OT scan which is always available if if you run it on your node super fast it does not track you and it offers exactly the same thing as ether can like if you I don't know how far you can see but the the results are the same um and replace centralized apis such as the graph or or calent with indexers that are uh local um so run true blocks inside your node it it will index what matters to you or what you need the data is always available uh it's faster than contacting an off-site API and doesn't have any API fees or nothing with throttle

you um something closer to my heart like accounting and tracking something like a coly replace it with something like Ry that runs locally protects your privacy all the data is there and it will always be available and always available doesn't mean that just because it runs on your computer it will always be available uh local tools you can actually always run the last version of the tool even if I don't know no on W something happens to me um or um the company is EAS to exist uh you can always just run the last version of the software uh and it's open source so if it's worth it done someone can just continue uh if something happens other ideas is to replace a local VPN not for every use case but for the use case that let's say you're in a

country that uh closes off many different uh URLs um you can just use something like your own machine with adap node to just go through your machine uh send all your traffic through your machine back in your home country to browse as if you are back in your country um so to focus a bit more on local management accounting which is what I know best so the software that I using is um we make this um software called dry it's op source and local first with everything that I explained before um does portfolio tracking for for cryptocurrencies and for a bit for traditional Finance um like your bank or or stocks Etc it offers uh profit loss

reporting and accounting and it preserves your privacy um why should you use it also for stating we know stating like I I stake and I also bother everybody that runs the clients like te guys Lighthouse guys I think that buha from Bon say hates me I report bugs uh we generally know staing very well because we do it and we create tools that track staking so this is why you should try to use tools like rodkey um when you want to track your staging so what it does is just gives you an overview of all of your assets in the dashboard historical data so like the net worth graph how much you have in I

don't know various exchanges various chain um uh how much you have in manual input balances like your bank or some stuff that cannot be tracked and it also can track all of the evm transactions understand them decode them in human readable format and um uh s them to you and it also connects to exchanges such as Kraken uh and more and it shows those events and any other events that maybe you can also input manually um as I said we can create a profit loss report um that is basically accounting over all of the events over like staing trades whatever else you have and then export it in a CSV so you can say it with your

accountant um and the idea behind Rod key is to be totally customizable for as many different jurisdictions as possible um you can customize stuff like U the nodes used for each um uh uh for each chain customize the pricing like the price oracles used in what order what's the probability and different for current prices and different for historical prices and for accounting like accounting has so many different jurisdictions even in Europe like every country even though they are European Union seems to want to do things completely different so we try to have as many different um configurations as possible and add more and more as as

users ask for them so since this is um let's see what does that mean I had a video but it says something in that I don't understand I'm offline okay U seem to not have a connection um yeah I anyway

uh like there's no connection if it's because it's fine can you Che yeah anyway so imagine that there is a a video showing um uh basically yeah there's no point in okay can you hear me cool so for stating um RI can show you

basically how um how many validators you have uh by checking the withdrawal and deposit addresses and then um how much was withdrawn um from the consensus layer gained basically by concessions layer by withdrawals and then uh oh oh thank you so much um yeah funny thing is that I had loaded before anyway so this is how it looks like um so how much if has this a demo account um consens rewards withdrawn from the execution layer withdrawn from consensus layer then we can see the performance of all of your validators um

in year month week or day which is taken from Bon chain API this performance um and then we see the decoded events uh like which blocks have been produced by which validators and how much was uh M Reward how much was um the block reward and if some of this is yours and some of this is someone else is um you can um filter for other types of events such as deposit events and this is like um uh multi deposit event that was done or the withdrawal events and then um check how many withdrawals were done um for all your validators in a given period

um and you can also uh see the attestations for all your validators per day and you know like filter for the red ones to see whenever your um validators went offline and for staking like this is not F stating but it's um still stating like there is other stating protocols such as liquid for example you can see um how much l USD you put in the stable uh stability pool you can U uh see the results of how much profit was had per protocol this is just an example for liquid and then the per protocol event so you deposit something

in um the the stating of stability pool for liquid and you see how much you can claim the rewards like this user claimed rewards there and um some of you may be stating which you should not be doing um in exchanges um we also support this um so for example for Kraken you can St eth or you can use this their n program that I guess lend um uh the stuff that cannot be staked like Bitcoin or or um uh uh others and it takes what it can like Usama padot Etc um so I guess I'm running out of time so in order to close I would like to ask

everybody to um um be staking locally and use local software um as for Rodi if you like the ideas of um uh open source and local first applications then please uh try to work with us we accept open source contributors everything is open source um but we're also hiring so if you're um very interested just uh join our Discord and talk to us spread the word um if you want to support us you can buy premium subscription that unlocks um some limits and more features and of course donate um to our uh to our C we are basically everywhere like gitcoin retro PDF yeah and all of the other donation

platforms so um that's all thank you very much