Ethereum censorability monitor

<p>We are pleased to announce that P2P has launched an MEV-enabled client on Solana validators which will allow P2P stakers to receive extra rewards from MEV starting today. <br></p><p>Maximum extractable value (MEV) is a growing capability in blockchain. It refers to the maximum profit a validator can make through its ability to include, exclude, or reorder transactions in the blocks it creates.  By running a MEV-enabled client on validators, P2Ps gain access to MEV Opportunities, which can increase staker APR while having a positive impact on the quality of the Solana network.</p><h3 id="mev-boosted-client-adoption">MEV-boosted client adoption</h3><p>To maximize MEV rewards for stakers, P2P will use the open-source Jito-Solana Client, which has been <a href="https://jito-foundation.gitbook.io/mev/audits/audits?ref=p2p.org">audited by Neodyme</a>, a leading security and blockchain auditing firm. Jito-Solana represents a meaningful improvement to Solana’s validator software. It was intentionally designed to maximize MEV rewards and optimize their distribution to network validators and stakers. In addition, Jito-Solana was designed to combat spam and improve network efficiency. One of the ways that Jito-Solana achieved this is through its optimization of transaction processing. Jito-Solana offers more efficient transaction processing by bundling transactions and optimizing transaction ordering, which reduces the number of duplicated and unnecessary transactions and enables faster processing times.</p><p>For implementation, we conducted an in-depth analysis of the impact of the Jito MEV client on Solana’s network performance and adoption among Solana validators. You can find the full report <a href="https://p2p.org/economy/jitos-mev-boosted-client-adoption-impact-on-solana-validators-performance/">here</a>. </p><p>The key takeaways are:</p><ul><li>The Jito client has been gaining traction among Solana validator operators, as reflected by the growing number of validators running the client (currently 80), their total active stake (~55M SOL), and their market share (~15%).</li><li>We also observed a decrease in the average active stake per validator using the Jito client which indicates that more validators with smaller stakes are adopting the software. This trend is a positive sign as it shows that even smaller validators can successfully run the Jito client. The Jito client democratizes access to MEV with equal treatment for all validators. The growth in adoption by lower-stake validators demonstrates a strong interest in MEV opportunities from a community that was previously unable to access these benefits.</li><li>The total Jito-generated MEV rewards are currently relatively low due to limited adoption and lack of MEV searcher participation. This situation should improve with broader adoption of the client and as searchers become more accustomed to the new tools. We observed a significant increase in MEV rewards after January 2023 suggesting that a large DeFi participant started using Jito's MEV extraction tools and we believe that others will soon follow.</li><li>Jito-enabled validators have shown higher average uptime, a higher number of vote credits, and a significantly higher stake-weighted average block production rate.</li><li>Careful statistical analysis showed that block production rate for validators that switched to the Jito client has increased significantly. The increase is likely due to the more efficient transaction processing enabled by the Jito client's optimized block engine.</li></ul><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/YjlzfIMapEo0xV1CVCjMjZYeX1VMVKYrb-_mYKrB5D0_Ts3e6SqmHxcAnZOSO2fhMr1gA0lWNRPABEWSp62KhP5ZeU4P4AlhJgCPmj_ro9r-SV-hoEPLfV-tWq5oj-L-JpZ0aIhJU2h-0GSLwgDuUwI" class="kg-image" alt loading="lazy" width="624" height="361"></figure><p>Based on our research, we believe that the Jito client is a valuable addition to the Solana ecosystem, providing validators and their delegates with a new revenue stream from MEV capabilities while also improving the Solana network stability. Feel free to view the validator performance data, MEV validators rewards, MEV stakers rewards, and more using the public P2P Validator dashboard at: <a href="https://reports.p2p.org/superset/dashboard/jito_client_adoption/?ref=p2p.org">https://reports.p2p.org/superset/dashboard/jito_client_adoption/</a>.</p><h3 id="security-assurance">Security assurance</h3><p>To implement the MEV client on P2P nodes, automation was prepared and tested to seamlessly switch between Jito and the standard Solana client with 0-downtime in this case. Infrastructure security is the most important thing and we would like to add details about the possible security risks validators may face when switching to the Jito client.</p><p>Basically, Jito client is a set of patches applied to a standard Solana client, so theoretically it may have new vulnerabilities or performance degradations in some situations on current or future releases. We discussed these issues with Jito labs and found that 2 independent auditors checked Jito code base and checked the stability of the client on our testnet validator.</p><p>Although the probability of validator performance degradation caused by Jito client is not zero, we don’t think it is a big problem since we always monitor the performance of our validators against cluster average performance statistics (vote success rate, block skip rate) with automated alerting if performance issues are detected. Generally, our monitoring system will allow us to make quick decisions about falling back to a standard Solana client.</p><p>There are certain things that must be taken into account when switching to a standard Solana client:</p><ul><li>Solana Foundation releases a new client with a request to update immediately. Usually, it happens, when the Foundation wants to close a vulnerability or fix stability issues. Jito labs need days or weeks to release its patched version (since it requires a lot of testing) so in such cases, we will switch to the standard client and wait for the Jito client release.</li><li>We detect abnormal behavior of a validator according to our monitoring metrics or detect significant performance degradation (for example vote success rate is lower than the cluster average).</li><li>We receive information from public or closed sources about a vulnerability revealed in the Jito client. In this case, all our validators immediately get moved to a standard client and we will get in touch with Jito labs to clarify the situation.</li></ul><p>If switching to a standard client happened and it has been going on for more than 2 weeks we will notify you about that on our <a href="https://twitter.com/P2Pvalidator?ref=p2p.org">Twitter</a>, so please subscribe to our Twitter to be up-to-date about our services</p><p>We believe that adopting the Jito client will drive MEV rewards. Performance should also improve even further as the client becomes more widely adopted and as searchers become accustomed to the new tools.</p><h3 id="sharing-mev-rewards-with-sol-stakers">Sharing MEV rewards with SOL stakers</h3><p>New and old P2P stakers alike have the opportunity to increase their revenue through extra MEV rewards. P2P will take an 8% commission from MEV rewards, distributing 92% of the rewards to stakers, according to their share.</p><p>The Jito Tip Distribution Program is the on-chain program that collects and distributes MEV rewards to eligible validators and stakers. At the end of an epoch, the MEV rewards earned by a validator are stored in a special account derived from the validator's vote account and the corresponding epoch.</p><p>Once the epoch is over, the validator generates a data structure containing the rewards claims for all validators and stake accounts and uploads it on-chain. Then validators and stakers receive the MEV rewards in the form of an automatic airdrop performed by Jito to the validators’ vote accounts and stakers stake accounts. The claim action is permissionless, meaning others could execute it if Jito failed to do so properly. Note that distributed rewards are not automatically staked (auto compounded) and the stake account owner is required to withdraw or stake the airdropped rewards.</p><p>Stakers and validators can check their rewards using the <a href="https://reports.p2p.org/superset/dashboard/jito_client_adoption/?ref=p2p.org">P2P Validator’s dashboard with Jito &amp; MEV </a>statistics or <a href="https://jito.retool.com/embedded/public/e9932354-a5bb-44ef-bce3-6fbb7b187a89?ref=p2p.org">Jito’s MEV rewards dashboard</a>. Anyone can check their rewards using public explorers, the details to do so are available in <a href="https://jito-foundation.gitbook.io/mev/mev-payment-and-distribution/faqs?ref=p2p.org">Jito’s documentation</a>.</p><h3 id="about-p2p">About P2P</h3><p>P2P Validator began in 2018 with a mission to positively influence the development of POS technologies. At the time of the latest update, more than 750 million USD value is staked with P2P Validator by over 35,000 delegators across 40+ networks. We work closely with each network we support to push the developments of each project to new limits. <br></p><p>Beginning as seed investors and validating from the genesis block, we have shown tremendous support to the Solana ecosystem since day one and are now trusted with over $120m under management. Our proficiency is shown not only by our excellent validating track record &amp; our published research papers written on network performance (<a href="https://www.stakingrewards.com/journal/solana-validators-performance-research-report-part-1-downtime-analysis/?ref=p2p.org">Downtime</a>, <a href="https://www.stakingrewards.com/journal/solana-validators-performance-research-report-part-2-skip-rate-analysis/?ref=p2p.org">Skip Rate</a>) to improve the network health and development, but also by our involvement across projects including <a href="https://portalbridge.com/?ref=p2p.org#/transfer">Wormhole Bridge</a>, <a href="https://pyth.network/?ref=p2p.org">Pyth</a>, and <a href="https://neon-labs.org/?ref=p2p.org">Neon EVM</a> to help build Solana’s network infrastructure.<br></p>

<p>RPC stands for Remote Procedure Call, and it refers to a protocol that allows a computer program to request services from a server in a network. In the cryptocurrency sphere, RPC is commonly used for communication between client applications and blockchain nodes. An RPC node serves as an interface for developers to interact with the blockchain, allowing them to access its data and execute transactions. The RPC protocol provides a standardized way for clients to communicate with the node, allowing them to query the blockchain, submit transactions, and perform other operations. By using an RPC node, developers can build and deploy decentralized applications on networks like Ethereum.</p><p>RPC nodes can be divided into two main areas: <a href="https://p2p.org/economy/shared-and-dedicated-rpc-nodes/">shared or dedicated</a>. Shared nodes are less secure and less reliable compared to dedicated nodes, but they are also less expensive and require less maintenance. However, dedicated nodes are the preferred choice for organizations requiring a high-security level, reliability, and performance. When working with dedicated RPC nodes, it's important to ensure that they are properly maintained and managed.</p><p>The maintenance of a dedicated Ethereum RPC node can be done in two ways: in-house or by outsourcing. In-house maintenance involves having a dedicated team responsible for managing the Ethereum node. This team is responsible for setting up, configuring, and maintaining the node, as well as troubleshooting any issues that may arise. This approach requires significant investment not only in hardware and software but also in terms of personnel and can be time-consuming and resource-intensive.</p><p>Outsourcing, on the other hand, involves contracting a specialized service provider to handle the maintenance and management of a node. This approach allows the organization to benefit from the expertise and resources of the service provider, who is responsible for ensuring the node is up-to-date, secure, and functioning properly. By outsourcing the RPC node maintenance we can reduce costs, improve security, and free up valuable time and resources that can be redirected to more critical tasks.</p><p>The following are some key benefits of outsourcing RPC node maintenance.</p><h3 id="saving-time-and-resources">Saving Time and Resources</h3><p>Maintaining an RPC node requires continuous monitoring and troubleshooting to ensure that the node is up-to-date and functioning properly. This can consume a significant amount of time and resources from a company's development and operations teams. By outsourcing this task to a specialized service provider, companies can free up valuable time and resources that can be redirected to more critical tasks.</p><h3 id="reliability-and-security">Reliability and security</h3><p>Outsourcing the maintenance and management of Ethereum RPC nodes can provide a high level of reliability and security, ensuring that the node is always up-to-date, secure, and functioning properly. Service providers specializing in Ethereum RPC node maintenance offer expertise, round-the-clock monitoring, quick response times, and regular maintenance to minimize the risk of downtime and technical issues. By outsourcing, organizations can improve the reliability of their systems, reduce risk, and increase operational efficiency, leading to improved customer satisfaction.</p><h3 id="reduced-costs">Reduced Costs</h3><p>In-house maintenance of an RPC node requires significant resources, including hardware, software, and personnel. By outsourcing it, companies can reduce their costs and minimize the need for expensive hardware and software investments. Additionally, they can avoid the cost of hiring and training employees to handle maintenance tasks.</p><p>For example, let's assume that an in-house DevOps engineer earns $100,000 per year, and it takes approximately 300 hours per year to maintain an Ethereum RPC node (research, updates, support, etc.). So the cost of in-house maintenance would be around $16500 for salary alone. RPC nodes also require servers to function. For an Ethereum RPC node, the price will be around $500 per month.</p><p>It turns out that the actual cost of supporting one node would be around $22500. This approach, however, won't provide you with the confidence that it will work properly around the clock. In most cases, one engineer cannot adequately cover all tasks, since failures and problems can occur at any time (at night, on holidays, etc.). For this reason, a 24/7 team is necessary. </p><h3 id="conclusion">Conclusion</h3><p>Outsourcing Ethereum RPC node maintenance can provide a wide range of benefits, including saving time and resources, improved security, and reduced costs. By outsourcing this task to a professional service provider, companies can focus on their core business functions while ensuring that their RPC node is properly maintained and secure. This can result in significant cost savings and a more efficient use of resources.</p><p>Unleash the full potential of your Ethereum or other network projects with our dedicated RPC node maintenance services. Partner with us at P2P and let us take care of the technicalities while you focus on developing innovative, game-changing products. Whether you're diving into the world of Web3 infrastructure or simply need reliable maintenance, we've got you covered. Contact us now to experience a hassle-free and seamless journey towards success!</p><p>Contact us at [email protected]</p>