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tezos-baking.md

Baking on Tezos

This document describes how to setup a Tezos node and delegate baking rights to it. It involves configuring two instances:

  • Node: Public vps instance that interacts with the tezos network and runs tezos-node, tezos-baker, tezos-endorser and tezos-accuser.
  • Signer: Private instance on your home network that contains the baker keys and authorizes baking requests via tezos-signer.

Prep Instances

This guide assumes you have already created two instances running Ubuntu 18.04.

Firewall

Node

Add Inbound TCP/UDP port 9732 for the tezos node to communicate with other nodes on the network.

For additional security, limit SSH access to your IP address.

Signer

Add Inbound TCP port 7732 (or a different unregistered TCP port) for the Node to make signing requests.

For additional security, limit SSH access to your IP address.

Create New User

Create a new user for managing each instance. For the remainder of this tutorial I'll refer to the Node user as tznode and the Signer user as tzsigner but you can name them anything you'd like.

Node

$ sudo adduser tznode
$ sudo adduser tznode sudo
$ sudo su
$ mkdir /home/tznode/.ssh
$ cp ~/.ssh/authorized_keys /home/tznode/.ssh/
$ chown -R tznode:tznode /home/tznode/.ssh/

Log out and back in as the new user:

$ ssh tznode@ipaddress

Signer

$ sudo adduser tzsigner
$ sudo adduser tzsigner sudo
$ sudo su
$ mkdir /home/tzsigner/.ssh
$ cp ~/.ssh/authorized_keys /home/tzsigner/.ssh/
$ chown -R tzsigner:tzsigner /home/tzsigner/.ssh/

Log out and back in as the new user:

$ ssh tzsigner@ipaddress

Update Dependencies

$ sudo apt-get update
$ sudo apt-get upgrade

Install fail2ban

$ sudo apt-get install fail2ban

Install Tezos

Install Dependencies

$ sudo apt-get install build-essential git m4 unzip rsync curl libev-dev libgmp-dev pkg-config libhidapi-dev
$ wget http://security.ubuntu.com/ubuntu/pool/universe/b/bubblewrap/bubblewrap_0.2.1-1_amd64.deb
$ sudo dpkg -i ./bubblewrap_0.2.1-1_amd64.deb

Install Opam

$ sh <(curl -sL https://raw.githubusercontent.com/ocaml/opam/master/shell/install.sh)
$ opam init --comp=4.06.1
$ eval $(opam env)
$ opam switch 4.06.1
$ opam update

Update Opam (Optional)

$ opam update
$ opam switch 4.06.1
$ eval $(opam env)

Checkout and Compile Source

$ git clone -b mainnet https://gitlab.com/tezos/tezos.git
$ cd tezos
$ make build-deps
$ eval $(opam env)
$ make

Update Source (Optional)

$ git pull
$ git checkout mainnet
$ eval $(opam env)
$ make

Configure Instances

Generate and Import Baker Keys

Signer

$ ./tezos-signer gen keys <baker_account>

where baker_account is the new alias of your baker account.

$ cat ~/.tezos-signer/public_key_hashs
[ { "name": "baker_account", "value": "tz1abc..." } ]
$ ./tezos-signer launch socket signer -a ipaddress -p port

where ipaddress is the ip and port is the port specified in the firewall settings.

Node

$ ./tezos-client import secret key <baker_account> tcp://ipaddress:port/tz1abc...

Secure Node<-->Signer Communication

Node

Generate an authentication key (this should not be confused with your baker key):

$ ./tezos-client gen keys <client>
$ cat ~/.tezos-client/public_keys
[ 
  ...
  { "name": "client",
    "value":
       "unencrypted:edpk123456789" } ]

where client is the new alias of your client auth key.

Signer

Import the auth key:

$ ./tezos-signer add authorized key edpk123456789 --name <client>

You can now use the --require-authentication flag when initializing tezos-signer:

$ ./tezos-signer --require-authentication launch socket signer -a ipaddress -p port

Node Config

Generate an identity and add a default configuration file for tezos-node:

$ ./tezos-node identity generate
$ sudo vim /home/tznode/.tezos-node/config.json

Add the following configuration defaults:

{
	"rpc": {
		"listen-addr": "127.0.0.1:8732"
	},
	"p2p": { 
		"listen-addr": "[::]:9732"
	}
}

Setup systemd Services

Node

tezos-node.service

$ sudo vim /etc/systemd/system/tezos-node.service

# The Tezos Node service (part of systemd)
# file: /etc/systemd/system/tezos-node.service 

[Unit]
Description     = Tezos Node Service
Documentation   = https://gitlab.com/tezos/tezos
Wants           = network-online.target
After           = network-online.target

[Service]
User            = tznode
Group		= tznode
WorkingDirectory= /home/tznode/
ExecStart	= /home/tznode/tezos/tezos-node run --connections 10
ExecStartPost   = /bin/sleep 5
Restart         = always
RestartSec      = 600
TimeoutSec      = 10

[Install]
WantedBy	= multi-user.target
RequiredBy	= tezos-baker.service tezos-endorser.service tezos-accuser.service

tezos-baker.service

$ sudo vim /etc/systemd/system/tezos-baker.service

# The Tezos Baker service (part of systemd)
# file: /etc/systemd/system/tezos-baker.service 

[Unit]
Description     = Tezos Baker Service
Wants           = network-online.target
BindsTo		= tezos-node.service
After           = tezos-node.service

[Service]
User            = tznode
Group		= tznode
WorkingDirectory= /home/tznode/
ExecStartPre	= /bin/sleep 1
ExecStart       = /home/tznode/tezos/tezos-baker-002-PsYLVpVv -R tcp://ipaddress:port/tz1...123 run with local node /home/tznode/.tezos-node baker
ExecStartPost   = /bin/sleep 5
Restart         = always
RestartSec      = 600
TimeoutSec      = 10

[Install]
WantedBy	= multi-user.target

tezos-endorser.service

$ sudo vim /etc/systemd/system/tezos-endorser.service

# The Tezos Endorser service (part of systemd)
# file: /etc/systemd/system/tezos-endorser.service 

[Unit]
Description     = Tezos Endorser Service
Wants           = network-online.target
BindsTo		= tezos-node.service
After           = tezos-node.service

[Service]
User            = tznode
Group		= tznode
WorkingDirectory= /home/tznode/
ExecStartPre	= /bin/sleep 1
ExecStart       = /home/tznode/tezos/tezos-endorser-002-PsYLVpVv -R tcp://ipaddress:port/tz1...123 run baker
ExecStartPost   = /bin/sleep 5
Restart         = always
RestartSec      = 600
TimeoutSec      = 10

[Install]
WantedBy	= multi-user.target

tezos-accuser.service

$ sudo vim /etc/systemd/system/tezos-accuser.service

# The Tezos Accuser service (part of systemd)
# file: /etc/systemd/system/tezos-accuser.service 

[Unit]
Description     = Tezos Accuser Service
Wants           = network-online.target 
BindsTo		= tezos-node.service
After           = tezos-node.service

[Service]
User            = tznode
Group		= tznode
WorkingDirectory= /home/tznode/
ExecStartPre	= /bin/sleep 1
ExecStart       = /home/tznode/tezos/tezos-accuser-002-PsYLVpVv run
ExecStartPost   = /bin/sleep 5
Restart         = always
RestartSec      = 600
TimeoutSec      = 10

[Install]
WantedBy	= multi-user.target

Signer

tezos-signer.service

$ sudo vim /etc/systemd/system/tezos-accuser.service

# The Tezos Signer service (part of systemd)
# file: /etc/systemd/system/tezos-signer.service 

[Unit]
Description     = Tezos Signer Service
Wants           = network-online.target 
BindsTo		= tezos-node.service
After           = tezos-node.service

[Service]
User            = tzsigner
Group		= tzsigner
WorkingDirectory= /home/tzsigner/
ExecStartPre	= /bin/sleep 1
ExecStart       = /home/tzsigner/tezos/tezos-signer --require-authentication launch socket signer -a ipaddress -p 7732
ExecStartPost   = /bin/sleep 5
Restart         = always
RestartSec      = 600
TimeoutSec      = 10

[Install]
WantedBy	= multi-user.target

Service Management

Enable services

$ sudo systemctl enable tezos-node
$ sudo systemctl enable tezos-baker
$ sudo systemctl enable tezos-endorser
$ sudo systemctl enable tezos-accuser
$ sudo systemctl enable tezos-signer

Start services

$ sudo systemctl start tezos-node
$ sudo systemctl start tezos-baker
$ sudo systemctl start tezos-endorser
$ sudo systemctl start tezos-accuser
$ sudo systemctl start tezos-signer

Service status

$ sudo systemctl status tezos-node
$ sudo systemctl status tezos-baker
$ sudo systemctl status tezos-endorser
$ sudo systemctl status tezos-accuser
$ sudo systemctl status tezos-signer

Monitor services

$ sudo journalctl -f -u tezos-node
$ sudo journalctl -f -u tezos-baker
$ sudo journalctl -f -u tezos-endorser
$ sudo journalctl -f -u tezos-accuser
$ sudo journalctl -f -u tezos-signer

Update service (optional)

If changes are made to systemd services you must reload and restart them:

$ sudo systemctl daemon-reload
$ sudo systemctl restart tezos-node

Setup Baker and Delegate

Import fundraiser account

$ ./tezos-client import fundraiser secret key <fundraiser_account>

where fundraiser_account is the new alias of your fundraiser account.

Activate fundraiser account (optional)

If you haven't activated your fundraiser account do so now:

$ ./tezos-client activate fundraiser account <fundraiser_account> with <activation key>

where activation key is the activation key generated from the verification site.

Transfer funds to baker

You must keep a balance in your baker account to cover security deposits; that number is 8.25% divided by % of total staked tokens on the network (~ 40% at the time of writing). So the amount of funds in the baker account should account for ~ 20% of total staked funds.

$ ./tezos-client transfer <amount> from <fundraiser_account> to <baker_account>
$ ./tezos-client get balance for <baker_account>
$ ./tezos-client get balance for <fundraiser_account>

Configure baker as a delegate

$ ./tezos-client register key <baker_account> as delegate

Delegate funds to baker

$ ./tezos-client originate account <fundraiser_delegate> for <fundraiser_account> transferring <amount> from <fundraiser_account> --delegate <baker_account> --delegatable

where fundraiser_delegate is the new alias of your fundraiser delegation account.

Verify delegation was successful:

$ ./tezos-client get manager for <fundraiser_delegate>
$ ./tezos-client get delegate for <fundraiser_delegate>
$ ./tezos-client list known contracts

Move fundraiser to cold storage

Backing up and removing the <fundraiser_account> secret key from the node allows us to store our staked funds offline. Open secret_keys, remove the <fundraiser_account> entry and store it in a safe place!

$ sudo vim ~/.tezos-client/secret_keys

The entry to remove (and backup!) will look like this:

{ "name": "fundraiser_account",
    "value":
      "unencrypted:edsk..." },

Verify fund transfers are disabled (this should throw an error):

$ ./tezos-client transfer 1 from <fundraiser_account> to <baker_account>

Credit

Many different resources were consumed while writing this guide; their authors deserve all the high fives. The following articles are excellent reads if you'd like to further understand what's happening under the hood:

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