Update Lighthouse book Sec 3-6 and FAQ (sigp#4221)

## Issue Addressed Update Lighthouse book to include latest information especially after Capella upgrade ## Proposed Changes Notable changes: - Combine Sec 4.1 & 6.1 into Sec 4, because Sec 6.1 is importing validator key which is a required step when want to run a validator - Combine Sec 5.1 & 5.2 with Sec 5, and move Sec 5 to under Sec 9 - Added partial withdrawals in Sec 6 ## Additional Info Please provide any additional information. For example, future considerations or information useful for reviewers. Co-authored-by: chonghe <tanck2005@gmail.com>
oone-world · Jul 13, 2023 · 352a1c2 · 352a1c2
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diff --git a/book/src/LaTeX/full-withdrawal.tex b/book/src/LaTeX/full-withdrawal.tex
@@ -0,0 +1,66 @@
+% To compile the file using PdfLaTeX, you may use the latex+dvips+ps2pdf compilation. If you are using TeXstudio, this is builtin and you can choose this option by going to Options > Configure TeXstudio under Build & View, choose DVI -> PS -> PDF Chain
+
+% Alternatively, you may use XeLaTeX with --shell-escape command. To do so in TeXstuidio, go to Options > Configure TeXstudio > Build. Under "Add Commands", enter a user of your choice, and in the right empty space, insert: txs:///xelatex/[--shell-escape]. When compile, go to Tools > User and select the user you just inserted. 
+
+\documentclass[]{article}
+\usepackage{pst-all}
+\pagestyle{empty}
+
+
+
+\begin{document}
+
+
+\begin{figure}
+	\psscalebox{1.0 1.0} % Change this value to rescale the drawing.
+	{
+		\begin{pspicture}(0,-9.09)(11.8,6.13)
+			\psframe[linecolor=black, linewidth=0.04, dimen=outer](7.3,6.13)(4.2,5.21)
+			\rput[bl](4.6,5.51){Voluntary exit}
+			\psline[linecolor=black, linewidth=0.04, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{-<}(5.8,5.21)(5.8,3.71)(5.8,3.81)
+			\psline[linecolor=black, linewidth=0.04](1.7,3.61)(9.8,3.61)
+			\psline[linecolor=black, linewidth=0.04, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{->}(1.7,3.61)(1.7,2.61)
+			\psframe[linecolor=black, linewidth=0.04, dimen=outer](2.9,2.63)(0.8,1.55)
+			\rput[bl](1.0,1.91){Type 0x00}
+			\psframe[linecolor=black, linewidth=0.04, dimen=outer](10.7,2.63)(8.6,1.55)
+			\rput[bl](8.8,1.91){Type 0x01}
+			\psline[linecolor=black, linewidth=0.04, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{->}(9.8,3.61)(9.8,2.61)
+			\psline[linecolor=black, linewidth=0.04, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{->}(1.7,1.51)(1.7,0.61)
+			\psframe[linecolor=black, linewidth=0.04, dimen=outer](3.7,0.61)(0.0,-1.19)
+			\rput[bl](0.6,-0.19){Funds locked in}
+			\rput[bl](0.7,-0.79){Beacon chain}
+			\psframe[linecolor=black, linewidth=0.04, dimen=outer](11.8,0.73)(7.9,-1.39)
+			\rput[bl](9.0,-0.59){Exit queue}
+			\rput[bl](8.8,0.01){Varying time}
+			\rput[bl](8.3,-1.09){32 minutes to weeks}
+			\rput[bl](9.0,-2.89){Fixed time}
+			\rput[bl](9.0,-3.49){27.3 hours}
+			\rput[bl](8.8,-5.49){Varying time}
+			\rput[bl](8.7,-5.99){validator sweep}
+			\rput[bl](8.9,-6.59){up to 5 days}
+			\psframe[linecolor=black, linewidth=0.04, dimen=outer](11.6,-2.19)(8.0,-3.89)
+			\psframe[linecolor=black, linewidth=0.04, dimen=outer](11.7,-4.79)(7.9,-6.89)
+			\psframe[linecolor=black, linewidth=0.04, dimen=outer](3.7,-2.49)(0.0,-4.29)
+			\rput[bl](1.3,-3.29){BLS to}
+			\rput[bl](0.6,-3.89){execution change}
+			\psline[linecolor=black, linewidth=0.04, linestyle=dashed, dash=0.17638889cm 0.10583334cm, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{->}(1.7,-1.19)(1.7,-2.49)
+			\psline[linecolor=black, linewidth=0.04, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{->}(9.8,1.51)(9.8,0.71)
+			\psline[linecolor=black, linewidth=0.04, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{->}(9.8,-1.39)(9.8,-2.19)
+			\psline[linecolor=black, linewidth=0.04, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{->}(9.8,-3.89)(9.8,-4.79)
+			\psline[linecolor=black, linewidth=0.04, linestyle=dotted, dotsep=0.10583334cm](3.7,-3.39)(5.8,-3.39)
+			\psline[linecolor=black, linewidth=0.04, linestyle=dotted, dotsep=0.10583334cm, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{->}(5.8,-3.39)(5.8,-0.39)(7.9,-0.39)
+			\psline[linecolor=black, linewidth=0.04, linestyle=dotted, dotsep=0.10583334cm, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{->}(5.8,-3.39)(8.0,-3.39)
+			\psline[linecolor=black, linewidth=0.04, linestyle=dotted, dotsep=0.10583334cm, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{->}(5.8,-3.39)(5.8,-6.09)(7.9,-6.09)
+			\psframe[linecolor=black, linewidth=0.04, dimen=outer](11.7,-7.79)(7.9,-9.09)
+			\psline[linecolor=black, linewidth=0.04, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{->}(9.8,-6.89)(9.8,-7.79)
+			\rput[bl](8.1,-8.59){\Large{Full withdrawal}}
+			\rput[bl](1.8,-2.09){\textit{\Large{anytime}}}
+			\rput[bl](4.0,-3.19){\textit{\Large{either}}}
+			\rput[bl](4.2,-3.89){\textit{\Large{one}}}
+		\end{pspicture}
+	}
+\end{figure}
+
+
+
+\end{document}          
diff --git a/book/src/LaTeX/partial-withdrawal.tex b/book/src/LaTeX/partial-withdrawal.tex
@@ -0,0 +1,50 @@
+% To compile the file using PdfLaTeX, you may use the latex+dvips+ps2pdf compilation. If you are using TeXstudio, this is builtin and you can choose this option by going to Options > Configure TeXstudio under Build & View, choose DVI -> PS -> PDF Chain
+
+% Alternatively, you may use XeLaTeX with --shell-escape command. To do so in TeXstuidio, go to Options > Configure TeXstudio > Build. Under "Add Commands", enter a user of your choice, and in the right empty space, insert: txs:///xelatex/[--shell-escape]. When compile, go to Tools > User and select the user you just inserted. 
+
+
+\documentclass[]{article}
+\usepackage{pst-all}
+\pagestyle{empty}
+
+
+
+\begin{document}
+
+\begin{figure}
+	\psscalebox{1.0 1.0} % Change this value to rescale the drawing.
+	{
+		\begin{pspicture}(0,-8.09)(10.7,5.53)
+			\psframe[linecolor=black, linewidth=0.04, dimen=outer](7.14,5.53)(3.6,4.45)
+			\rput[bl](3.8,4.81){Partial withdrawals}
+			\psline[linecolor=black, linewidth=0.04, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{-<}(5.2,4.41)(5.2,2.91)(5.2,3.01)
+			\psline[linecolor=black, linewidth=0.04](1.8,2.81)(8.9,2.81)
+			\psline[linecolor=black, linewidth=0.04, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{->}(1.8,2.81)(1.8,1.81)
+			\psframe[linecolor=black, linewidth=0.04, dimen=outer](2.7,1.83)(0.6,0.75)
+			\rput[bl](0.8,1.09){Type 0x00}
+			\psframe[linecolor=black, linewidth=0.04, dimen=outer](9.8,1.83)(7.7,0.75)
+			\rput[bl](7.92,1.07){Type 0x01}
+			\psline[linecolor=black, linewidth=0.04, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{->}(8.9,2.81)(8.9,1.81)
+			\psline[linecolor=black, linewidth=0.04, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{->}(1.7,0.71)(1.7,-0.19)
+			\psframe[linecolor=black, linewidth=0.04, dimen=outer](3.7,-0.19)(0.0,-1.99)
+			\rput[bl](0.66,-0.99){Funds locked in}
+			\rput[bl](0.9,-1.59){Beacon chain}
+			\psframe[linecolor=black, linewidth=0.04, dimen=outer](10.7,-3.29)(6.8,-5.09)
+			\rput[bl](7.6,-3.99){validator sweep}
+			\rput[bl](7.5,-4.69){$\sim$ every 5 days}
+			\psframe[linecolor=black, linewidth=0.04, dimen=outer](3.7,-3.29)(0.0,-5.09)
+			\rput[bl](1.3,-4.09){BLS to}
+			\rput[bl](0.5,-4.69){execution change}
+			\psline[linecolor=black, linewidth=0.04, linestyle=dashed, dash=0.17638889cm 0.10583334cm, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{->}(1.7,-1.99)(1.7,-3.29)
+			\psline[linecolor=black, linewidth=0.04, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{->}(8.9,0.71)(8.9,-3.29)
+			\psline[linecolor=black, linewidth=0.04, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{->}(3.7,-4.19)(6.7,-4.19)
+			\psframe[linecolor=black, linewidth=0.04, dimen=outer](10.7,-6.29)(6.9,-8.09)
+			\rput[bl](7.0,-6.99){Balance above 32 ETH}
+			\rput[bl](7.9,-7.59){withdrawn}
+			\psline[linecolor=black, linewidth=0.04, arrowsize=0.05291667cm 2.0,arrowlength=1.4,arrowinset=0.0]{->}(8.9,-5.09)(8.9,-6.29)
+			\rput[bl](1.8,-2.89){\textit{\Large{anytime}}}
+		\end{pspicture}
+	}
+\end{figure}
+
+\end{document}    
diff --git a/book/src/SUMMARY.md b/book/src/SUMMARY.md
@@ -11,15 +11,10 @@
     * [Update Priorities](./installation-priorities.md)
 * [Run a Node](./run_a_node.md)
 * [Become a Validator](./mainnet-validator.md)
-    * [Become a Testnet Validator](./testnet-validator.md)
-* [Key Management](./key-management.md)
-    * [Create a wallet](./wallet-create.md)
-    * [Create a validator](./validator-create.md)
-    * [Key recovery](./key-recovery.md)
 * [Validator Management](./validator-management.md)
-    * [Importing from the Staking Launchpad](./validator-import-launchpad.md)
     * [Slashing Protection](./slashing-protection.md)
     * [Voluntary Exits](./voluntary-exit.md)
+    * [Partial Withdrawals](./partial-withdrawal.md)
     * [Validator Monitoring](./validator-monitoring.md)
     * [Doppelganger Protection](./validator-doppelganger.md)
     * [Suggested Fee Recipient](./suggested-fee-recipient.md)
@@ -46,6 +41,8 @@
     * [Remote Signing with Web3Signer](./validator-web3signer.md)
     * [Database Configuration](./advanced_database.md)
     * [Database Migrations](./database-migrations.md)
+    * [Key Management](./key-management.md)
+    * [Key Recovery](./key-recovery.md)
     * [Advanced Networking](./advanced_networking.md)
     * [Running a Slasher](./slasher.md)
     * [Redundancy](./redundancy.md)

diff --git a/book/src/imgs/full-withdrawal.png b/book/src/imgs/full-withdrawal.png
diff --git a/book/src/imgs/partial-withdrawal.png b/book/src/imgs/partial-withdrawal.png
diff --git a/book/src/installation.md b/book/src/installation.md
@@ -29,6 +29,10 @@ After [The Merge](https://ethereum.org/en/roadmap/merge/) on 15<sup>th</sup> Sep
 
 
 * CPU: Quad-core AMD Ryzen, Intel Broadwell, ARMv8 or newer
-* Memory: 16 GB RAM or more
-* Storage: 2 TB solid state storage
+* Memory: 32 GB RAM*
+* Storage: 2 TB solid state drive
 * Network: 100 Mb/s download, 20 Mb/s upload broadband connection
+
+> *Note: 16 GB RAM is becoming rather limited due to the increased resources required. 16 GB RAM would likely result in out of memory errors in the case of a spike in computing demand (e.g., caused by a bug) or during periods of non-finality of the beacon chain. Users with 16 GB RAM also have a limited choice when it comes to selecting an execution client, which does not help with the [client diversity](https://clientdiversity.org/). We therefore recommend users to have at least 32 GB RAM for long term health of the node, while also giving users the flexibility to change client should the thought arise. 
+
+Last update: April 2023
diff --git a/book/src/key-management.md b/book/src/key-management.md
@@ -3,12 +3,12 @@
 [launchpad]: https://launchpad.ethereum.org/
 
 >
-> **Note: we recommend using the [Staking launchpad][launchpad] to create validators.**
+> **Note: While Lighthouse is able to generate the validator keys and the deposit data file to submit to the deposit contract, we strongly recommend using the [staking-deposit-cli](https://github.com/ethereum/staking-deposit-cli) to create validators keys and the deposit data file. This is because the [staking-deposit-cli](https://github.com/ethereum/staking-deposit-cli) which has the option to assign a withdrawal address during the key generation process, while Lighthouse wallet will always generate keys with withdrawal credentials of type 0x00. This means that users who created keys using Lighthouse will have to update their withdrawal credentials in the future to enable withdrawals. In addition, Lighthouse generates the deposit data file in the form of `*.rlp`, which cannot be uploaded to the [Staking launchpad][launchpad] that accepts only `*.json` file. This means that users have to directly interact with the deposit contract to be able to submit the deposit if they were to generate the files using Lighthouse.**
 
 Lighthouse uses a _hierarchical_ key management system for producing validator
 keys. It is hierarchical because each validator key can be _derived_ from a
 master key, making the validators keys _children_ of the master key. This
-scheme means that a single 24-word mnemonic can be used to backup all of your
+scheme means that a single 24-word mnemonic can be used to back up all of your
 validator keys without providing any observable link between them (i.e., it is
 privacy-retaining). Hierarchical key derivation schemes are common-place in
 cryptocurrencies, they are already used by most hardware and software wallets
@@ -30,37 +30,63 @@ We defined some terms in the context of validator key management:
 	keypair.
 	- Defined in EIP-2335.
 - **Voting Keypair**: a BLS public and private keypair which is used for
-	signing blocks, attestations and other messages on regular intervals,
-	whilst staking in Phase 0.
+	signing blocks, attestations and other messages on regular intervals in the beacon chain.
 - **Withdrawal Keypair**: a BLS public and private keypair which will be
 	required _after_ Phase 0 to manage ETH once a validator has exited.
 
-## Overview
+## Create a validator
+There are 2 steps involved to create a validator key using Lighthouse:
+ 1. [Create a wallet](#step-1-create-a-wallet-and-record-the-mnemonic)
+ 1. [Create a validator](#step-2-create-a-validator)
 
-The key management system in Lighthouse involves moving down the above list of
-items, starting at one easy-to-backup mnemonic and ending with multiple
-keypairs. Creating a single validator looks like this:
+The following example demonstrates how to create a single validator key.
 
-1. Create a **wallet** and record the **mnemonic**:
-    - `lighthouse --network prater account wallet create --name wally --password-file wally.pass`
-1. Create the voting and withdrawal **keystores** for one validator:
-	- `lighthouse --network prater account validator create --wallet-name wally --wallet-password wally.pass --count 1`
+### Step 1: Create a wallet and record the mnemonic
+A wallet allows for generating practically unlimited validators from an
+easy-to-remember 24-word string (a mnemonic). As long as that mnemonic is
+backed up, all validator keys can be trivially re-generated.
 
+Whilst the wallet stores the mnemonic, it does not store it in plain-text: the
+mnemonic is encrypted with a password. It is the responsibility of the user to
+define a strong password. The password is only required for interacting with
+the wallet, it is not required for recovering keys from a mnemonic.
 
-In step (1), we created a wallet in `~/.lighthouse/{network}/wallets` with the name
-`wally`. We encrypted this using a pre-defined password in the
-`wally.pass` file. Then, in step (2), we created one new validator in the
-`~/.lighthouse/{network}/validators` directory using `wally` (unlocking it with
-`wally.pass`) and storing the passwords to the validators voting key in
-`~/.lighthouse/{network}/secrets`.
+To create a wallet, use the `lighthouse account wallet` command. For example, if we wish to create a new wallet for the Goerli testnet named `wally` and saves it in `~/.lighthouse/goerli/wallets` with a randomly generated password saved
+to `./wallet.pass`:
 
-Thanks to the hierarchical key derivation scheme, we can delete all of the
-aforementioned directories and then regenerate them as long as we remembered
-the 24-word mnemonic (we don't recommend doing this, though).
+```bash
+lighthouse --network goerli account wallet create --name wally --password-file wally.pass
+```
+Using the above command, a wallet will be created in `~/.lighthouse/goerli/wallets` with the name
+`wally`. It is encrypted using the password defined in the
+`wally.pass` file. 
 
-Creating another validator is easy, it's just a matter of repeating step (2).
-The wallet keeps track of how many validators it has generated and ensures that
-a new validator is generated each time.
+During the wallet creation process, a 24-word mnemonic will be displayed. Record the mnemonic because it allows you to recreate the files in the case of data loss.
+> Notes:
+> - When navigating to the directory `~/.lighthouse/goerli/wallets`, one will not see the wallet name `wally`, but a hexadecimal folder containing the wallet file. However, when interacting with `lighthouse` in the CLI, the name `wally` will be used.
+> - The password is not `wally.pass`, it is the _content_ of the
+>   `wally.pass` file.
+> - If `wally.pass` already exists, the wallet password will be set to the content
+>   of that file.
+
+### Step 2: Create a validator
+Validators are fundamentally represented by a BLS keypair. In Lighthouse, we use a wallet to generate these keypairs. Once a wallet exists, the `lighthouse account validator create` command can be used to generate the BLS keypair and all necessary information to submit a validator deposit. With the `wally` wallet created in [Step 1](#step-1-create-a-wallet-and-record-the-mnemonic), we can create a validator with the command:
+
+```bash
+lighthouse --network goerli account validator create --wallet-name wally --wallet-password wally.pass --count 1
+```
+This command will:
+
+- Derive a single new BLS keypair from wallet `wally` in `~/.lighthouse/goerli/wallets`, updating it so that it generates a new key next time.
+- Create a new directory `~/.lighthouse/goerli/validators` containing:
+    - An encrypted keystore file `voting-keystore.json` containing the validator's voting keypair.
+	- An `eth1_deposit_data.rlp` assuming the default deposit amount (`32 ETH`) which can be submitted to the deposit
+		contract for the Goerli testnet. Other networks can be set via the
+		`--network` parameter.
+- Create a new directory `~/.lighthouse/goerli/secrets` which stores a password to the validator's voting keypair.
+
+
+If you want to create another validator in the future, repeat [Step 2](#step-2-create-a-validator). The wallet keeps track of how many validators it has generated and ensures that a new validator is generated each time. The important thing is to keep the 24-word mnemonic safe so that it can be used to generate new validator keys if needed.
 
 ## Detail
 
@@ -76,36 +102,17 @@ There are three important directories in Lighthouse validator key management:
 	- Defaults to `~/.lighthouse/{network}/validators`
 - `secrets/`: since the validator signing keys are "hot", the validator process
 	needs access to the passwords to decrypt the keystores in the validators
-	dir. These passwords are stored here.
-	- Defaults to `~/.lighthouse/{network}/secrets` where `network` is the name of the network passed in the `--network` parameter (default is `mainnet`).
+	directory. These passwords are stored here.
+	- Defaults to `~/.lighthouse/{network}/secrets` 
+
+where `{network}` is the name of the network passed in the `--network` parameter.
 
 When the validator client boots, it searches the `validators/` for directories
 containing voting keystores. When it discovers a keystore, it searches the
-`secrets/` dir for a file with the same name as the 0x-prefixed hex
-representation of the keystore public key. If it finds this file, it attempts
+`secrets/` directory for a file with the same name as the 0x-prefixed validator public key. If it finds this file, it attempts
 to decrypt the keystore using the contents of this file as the password. If it
 fails, it logs an error and moves onto the next keystore.
 
 The `validators/` and `secrets/` directories are kept separate to allow for
 ease-of-backup; you can safely backup `validators/` without worrying about
 leaking private key data.
-
-### Withdrawal Keypairs
-
-In Ethereum consensus Phase 0, withdrawal keypairs do not serve any immediate purpose.
-However, they become very important _after_ Phase 0: they will provide the
-ultimate control of the ETH of withdrawn validators.
-
-This presents an interesting key management scenario: withdrawal keys are very
-important, but not right now. Considering this, Lighthouse has adopted a
-strategy where **we do not save withdrawal keypairs to disk by default** (it is
-opt-in). Instead, we assert that since the withdrawal keys can be regenerated
-from a mnemonic, having them lying around on the file-system only presents risk
-and complexity.
-
-At the time of writing, we do not expose the commands to regenerate keys from
-mnemonics. However, key regeneration is tested on the public Lighthouse
-repository and will be exposed prior to mainnet launch.
-
-So, in summary, withdrawal keypairs can be trivially regenerated from the
-mnemonic via EIP-2333 so they are not saved to disk like the voting keypairs.