Enhancing Security with Remote Staking in PoS Blockchains

Proof-of-Stake (PoS) blockchains are systems where validators lock up their tokens as a guarantee to follow the rules. If they break these rules, they can lose some or all of their tokens. This form of security provides a checking mechanism for validators, ensuring they act honestly. The main strength of PoS blockchains comes from the total value of tokens locked up as collateral. The more value locked, the more secure the network is.

#The Problem with Native Tokens

Most PoS blockchains use their own tokens for staking and security. For example, Ethereum uses ETH, Cosmos uses ATOM, and BNB Chain uses BNB. However, relying solely on these native tokens limits the security of the blockchain to the market value of that token. If the value of a token goes down, so does the security of the blockchain.

#Remote Staking Explained

Remote staking allows a blockchain to use tokens from other chains for security. This means that instead of only using its native tokens, a blockchain can use tokens from a different chain, known as the provider chain. This approach enhances the overall economic security of the consumer chain, as it increases the total value of tokens that can be staked.

#Key Protocols for Improved Safety

In this study, we discuss a unique type of remote staking protocol that guarantees better safety. The key features include:

1. A method to ensure that if there is a security issue on the consumer chain, at least one-third of the tokens staked on the provider chain will be penalized.
2. An innovative unbonding process that allows for penalties before the tokens are fully released from the provider chain.
3. A way to enforce penalties even if the provider chain does not have complex smart contracts.

#Moving from Proof-of-Work to Proof-of-Stake

Recently, there has been a noticeable shift from proof-of-work (PoW) systems to PoS systems across many blockchains. This shift is largely due to the environmental benefits of PoS, which consumes much less energy. In PoS, validators can be held responsible for their actions. If they break the rules, their staked tokens can be taken away. This accountability is a critical factor for the safety of PoS systems.

#Safety in PoS Systems

A crucial aspect of PoS systems is what can be termed "accountable safety." This means that it's possible to identify which validators have acted against the rules during a safety violation. This aspect of the system was a significant reason for Ethereum's switch to PoS. Systems like Tendermint, which are commonly used in PoS chains, rely on this concept of accountability. If enough validators act inappropriately, the network can take steps to protect itself.

#The Need for Better Security Measures

While PoS systems provide a higher level of accountability, they still have weaknesses, especially if they only rely on their native tokens. If too many validators act against the rules, the system cannot protect itself adequately. This is a significant issue, as it allows adversaries to temporarily take control of the network, causing violations without facing consequences.

#Benefits of Remote Staking

Remote staking provides solutions to enhance security beyond what native staking can offer. By allowing the use of tokens from other chains, remote staking increases the total amount of value that can be staked, thereby enhancing the security of the consumer chain.

Additionally, remote staking avoids some of the limitations present in current bridging solutions, which can be risky due to dependencies on third parties or other chains that may not be secure.

#Structure of Remote Staking Protocol

#1. Secure Unbonding Process

In traditional PoS systems, once validators are identified as acting against the rules, they can sometimes withdraw their tokens before any penalties can be enforced. This problem is addressed by using a secure unbonding mechanism. This ensures that if any safety violation occurs, the tokens can be slashed (penalized) before they are released from the provider chain.

#2. Slashing Without Smart Contracts

In cases where the provider chain (such as Bitcoin) does not support complex smart contracts, we introduce a method to ensure that penalties can still be enforced. This is achieved through specific protocols that allow stakeholders to penalize wrongdoers even if smart contracts are not present.

#Detailed Overview of Remote Staking

#Core Components

The remote staking protocol involves the following main elements:

1. Timestamping Protocol: This feature allows for the validation of transactions across chains through recorded timestamps that show when specific blocks were confirmed. These timestamps help track which validators acted appropriately or otherwise.

2. Finality Gadget: This component helps ensure that blocks are confirmed through additional, secure signatures. These signatures provide a higher level of assurance that the blocks are valid and have not been tampered with.

3. Bond Contract: This is a contract that holds the tokens staked by validators. It enforces rules around unbonding, ensuring that validators cannot withdraw their tokens until certain conditions are met.

#Economic Security Measures

For remote staking to be effective, it must not only identify malicious validators but also penalize them appropriately. The economic security of a PoS blockchain thus depends on its ability to:

• Identify which validators have acted against the rules.
• Slashing their tokens so they can no longer participate in the staking process, thus preventing any future violations.

This leads to enhanced safety not just for the consumer chain but also for the entire ecosystem built around it.

#Practical Implementation

The protocol is tested in practice through an implementation where Bitcoin serves as the provider chain. The consumer chain utilizes the Cosmos SDK, which has been optimized for the Tendermint consensus protocol.

#Validator Operations

Validators in this setup must perform the following operations:

1. Lock their tokens in a bond contract on Bitcoin.
2. Maintain key pairs associated with their signatures to prevent unauthorized access.
3. Monitor the consensus protocol of the consumer chain to ensure they can respond to any discrepancies.

#Performance Evaluation

The implementation has been evaluated for performance, showing that it consumes minimal resources. The memory requirements are low, making it feasible to operate on various platforms without significant overhead.

#Conclusion

Remote staking represents a significant advancement in securing blockchain networks. By allowing the use of external tokens for staking, it enhances overall safety and prevents adversarial actions from undermining the integrity of the blockchain. The protocols and mechanisms introduced here aim to create a safer, more reliable environment for blockchain operations, enabling broader adoption and usage of PoS systems.

#Future Directions

The future of blockchain security lies in the continued improvement of mechanisms like remote staking. Ongoing research will focus on enhancing protocols, strengthening security measures, and ensuring that blockchain systems can not only operate efficiently but also remain safe against potential threats. Interactive systems involving multiple chains will play a critical role in the evolution of blockchain technology, and remote staking is at the forefront of this progression.

By exploring more advanced and flexible staking solutions, the blockchain community can ensure that its systems are robust, adaptable, and secure enough to withstand the challenges of tomorrow.