Staking basics

How to become a node operator on ETH?

Zainab Saberi

Apr 13, 2023 • 7 min read

Are you interested to know how to become a node operator on ETH? As one of the most popular blockchain networks, Ethereum requires node operators to run and maintain the network's security, integrity, and transparency. By becoming an Ethereum node operator, you can contribute to the network's decentralized infrastructure and receive rewards for your efforts.

This blog post will cover everything you need to know for becoming an Ethereum validator, including what an Ethereum node is, how to setup an Ethereum Node, how to start staking, and the costs and responsibilities of being a node operator.

Also Read: Decentralisation in ETHx

What is an Ethereum Node?

Let’s begin knowing how to become a node operator on ETH. Before that, you must know the basics - what does an “Ethereum node” mean? It refers to any computer equipped with the necessary software to establish a connection with the Ethereum network. These nodes connect to exchange information, verify transactions, and store blockchain data related to its current state.

Although people often use the terms interchangeably, these interconnected computers are the nodes themselves, while the software they operate is known as the client.

There are several types of Ethereum nodes, including full nodes, light nodes, and archive nodes. Full nodes are the most common type, allowing you to access the entire Ethereum blockchain and ensure every network block is correct. It can interact with any smart contract and even deploy one independently.

Full nodes also utilize full data storage, which requires more computing power and bandwidth resources. It downloads, stores, and verifies an entire blockchain state from block zero to the most recent block.
A light node helps efficiently interact with the network and saves a lot of bandwidth and storage. Hence, it can be used in everyday devices such as smartphones and laptops.

These nodes also validate a transaction as they can generate specific blocks for checking & verification purposes. But they have this limitation where they ask full nodes for the data they cannot access.

While a light node is the easiest way to run a node, it still takes time and know-how to install the client, configure variables, download block headers, and check to ensure that everything is running smoothly.
An archive node is a step ahead of a full node. While the full node removes entries no longer require to be verified, the archive node stands true to its name and maintains everything in the record. These details are a big help when efficiently querying information and are handy for a few applications.

Also Read: ETH2 Staking

How to run an Ethereum Node?

Let’s move to the next step in getting the know-how to become a node operator on ETH. Here is your list of options for setting up your Ethereum node in different ways as per your choice.

Plug and play solutions:

DAppNode and Avado Cloud are the top two plug-and-play ETH validator solutions. They are popular due to their suitability for beginners and non-technical users. Remember that to learn how to run an Ethereum node, we must select the right software.

DAppNode Solution:

DAppNode provides grassroots hardware and software solutions for everyone to run the blockchain nodes easily.

So how does it work? You plug in the hardware, and the system walks you through all the required steps in launching your node, and that’s how you become Ethereum node validator. You will need 32 ETH for depositing and a generated keystore to store your validator private key safely.

The pricing for the base DAppNode home i716 unit starts at around €1,562.90 each.

2. Avado Cloud:

This allows you to run your node for Ethereum and other Proof-of-Stake blockchains. And it is super easy, simply plug the device in, follow certain prompts as asked, and stake your ETH from home within a few clicks! You only need 32 ETH for depositing, and the base AVADO i7 unit price starts at $1,600 each.

- Solo Staking [DIY Hardware]:

Do you prefer to repurpose your old hardware and aim for becoming an Ethereum validator? To some, it might sound challenging, but it is possible to do so. To know how to become a node operator on ETH, you must know this DIY node running method.

It requires some technical knowledge/skills, a minimum of 32 ETH, 24/7 operational hardware, and a stable 10+ Mbps data connection. You would get a lot of freedom to customize your solo staking setup as per your preference.

Also, whether you want to use a $100 Raspberry Pi 4 or a $1000 Intel NUC for your setup, the choice is up to you. There are many amazing resources to refer to launch DIY hardware and know how to become a node operator on ETH. Here are some of them:

-Decentralized LST Operators

Liquid staking tokens [LST] help home stakers like you to bootstrap some capital. Yet, home stakers must put up a bond to guarantee performance. The balance [32 ETH minus the value of the bond] is allocated from the user funds and is deposited as LST.

What does it mean? It means you can know how to become a node operator on ETH by depositing less than 32 ETH. You can start with as low as 4 ETH. The bonus points here are you do not need to:

Sign a contract
Have any prior reputation
No KYC or whitelisting is needed
Provide any track record of performance

Running a full node on ETH gives you various advantages, including receiving commissions on delegated ETH from the LST. By knowing how to become a node operator on ETH and running your own node, you can greatly contribute to the Ethereum community by ensuring its smooth operations globally.

This improves the network's security and resilience and grab rewards in return. Hence, these were three different ways of knowing how to setup an Ethereum node.

Also Read: How to Stake ETH

How to start staking on Ethereum Node?

Once you know how to become a node operator on ETH, you can also begin staking your Ethereum. You can do it via your node. Ethereum suggests investing in advanced hardware. You can make use of Ethereum wallets such MetaMask or MyEtherWallet.

And once your Ethereum node is up and running smoothly, you can start staking ETH by connecting your wallet to your node. Thereby delegating your ETH to the staking pool or running your validator and getting rewarded in return. And that is exactly how to stake ETH.

Also Read: Ethereum Staking Rewards

Responsibilities as a node operator

When you know how to become a node operator on ETH, you must also know that staking in Proof of Stake [PoS] is done via the validators. Every validator is a single Beacon Chain address to which 32 ETH has been deposited on the Execution Layer [of the Ethereum blockchain].

This is done by listening for the transactions and new block proposals and attesting to the proposed block that contains the legal and valid transactions. Validators are assigned both the attestations and the block proposals on a random schedule basis which differs from the Proof of Work [PoW] system.

Also, unlike the Proof of Work, where miners do not get a guaranteed return unless they find the next bloc, the Proof of Stake validators are promised to have a slow and steady rewards flow as long as they perform their duties right or else might get penalized, so one must beware of this as a thumb rule on how to become a node operator on ETH.

Also, if you're looking to liquid stake your ETH tokens where you can earn staking rewards as well as at the very same time access the DeFi protocol, Stader Labs can be a good option where you will get Stader's ETHx in return for your staked ETH tokens.

Frequently Asked Questions [FAQs]:

What is the node operator in the Ethereum Network, and what role do they play?

A. A node operator in the Ethereum network plays a vital role in maintaining the network's decentralization and security. They can run a node locally at home or remotely on the cloud.

Their responsibilities include selecting the hardware for a local machine or a remote hosting provider, preparing and securing the operating system of the node, selecting Execution (ETH1) and Consensus (ETH2) clients, installing specific software stacks if they are participating in staking pools, creating a new ETH2 validator, and maintaining and updating the node.

2. What are the technical requirements to become a node operator on Ethereum?

A. If you are still unversed with the technical requirement of how to become a node operator on ETH, then it is simple. You will need a computer with at least 4GB of RAM, a reliable internet connection, and sufficient storage space. You should also have experience running command-line interfaces and be comfortable working with the Linux/MAC operating system.

3. How do I ensure the security and reliability of my Ethereum node?

A. Ensure the security and reliability of your Ethereum node by following best practices for maintaining your node and keeping it up-to-date with the latest software releases.

This includes regularly backing up your node's data, monitoring your node for any unusual activity, and also securing your node with strong passwords and two-factor authentication compulsorily.

Also Read: What is Liquid Staking

4. What are the risks and potential rewards of becoming an Ethereum node operator?

A. As with any investment or business opportunity, there are risks and potential rewards for which many want to know how to become a node operator on ETH. Some risks include hardware failures, cyber-attacks, and regulatory changes that may impact the profitability of your node.

While the potential rewards include receiving transaction fees, Ethereum staking rewards, and contributing to the overall security and decentralization of the Ethereum network.

5. How do I connect my node to the Ethereum network, and what are the best practices for maintaining a stable connection?

A. To connect your node to the Ethereum network, you must download and install the appropriate software client and configure your node to connect to other nodes on the network. Ensure your node has a reliable internet connection, monitor your node for any connectivity issues, and regularly update your software to ensure compatibility with the rest of the network.

6. Are there any legal or regulatory considerations I need to be aware of before becoming an Ethereum node operator?

A. As with any business or investment opportunity, it is important to be aware of any applicable legal or regulatory considerations when trying to become Ethereum node validator.

Depending on your jurisdiction, you may need to obtain licenses or comply with certain financial services, data protection, and cybersecurity regulations. Once you are researching how to become a node operator on ETH, it is recommended that you consult with legal and regulatory experts to ensure that you are operating in compliance with all applicable laws and regulations.