🎯 Introduction and Project Context

Verifiable Delay Functions represent a critical component of the Tezos blockchain's randomness generation mechanism, serving as a cryptographic primitive that enables provably unbiased and unpredictable random value generation. Since the introduction of the Kathmandu protocol, the Tezos network requires at least one VDF computation to be completed during each blockchain cycle, with the first successful solution submission receiving a small economic reward through the seed_nonce_revelation_tip mechanism.

The subject baker configuration operated with previously optimized Data Availability Layer attestation functionality, collecting substantial DAL rewards through a sophisticated network configuration that addressed residential networking constraints. The implementation of VDF computation capabilities presented a unique architectural challenge: how to enable participation in VDF competition without disrupting the existing, successfully operating DAL infrastructure.

🔬 Technical Background and Requirements

VDF Computational Characteristics

Verifiable Delay Functions in the Tezos implementation utilize class-group based cryptographic computations that exhibit specific performance characteristics critical to successful participation. The computation is inherently sequential and single-threaded, meaning that parallelization cannot accelerate the process, and high clock-speed CPUs provide significant advantages over multi-core configurations with lower individual core performance.

The computational requirements include substantial memory allocation (typically 24GB or greater) and the ability to complete computations within the protocol-defined time window. Since the Rio protocol implementation, this time constraint has been set to one day, creating a competitive environment where multiple network participants race to submit the first valid solution.

Integration Challenges with Existing Infrastructure

The subject baker configuration operated a sophisticated DAL attestation system utilizing a carefully tuned network configuration that addressed P2P connectivity challenges in residential networking environments. The challenge of VDF implementation centered on the recognition that VDF computation is integrated into the baker daemon itself, rather than operating as a completely separate service. This architectural design meant that enabling VDF functionality required careful consideration of process isolation to prevent conflicts with the existing, optimized DAL infrastructure.

./octez-baker-PtSeouLo --base-dir /home/mike/.tezos-client \
  --endpoint http://127.0.0.1:8733 \
  run with local node /home/mike/.tezos-node-fresh \
  consensus_key companion_key \
  --liquidity-baking-toggle-vote pass \
  --dal-node http://127.0.0.1:10732

🔍 Implementation Methodology and Technical Investigation

Documentation Analysis and Command Structure Investigation

Initial implementation attempts followed standard VDF deployment guidance, which typically recommends simple integration of VDF functionality into existing baker configurations. However, investigation of the Octez baker command structure revealed critical insights about the relationship between VDF functionality and broader baker operations.

# Documentation queries returned no results
octez-client man vdf
# Error: No manual entry that match vdf.

./octez-baker-PtSeouLo --help | grep -A 5 -B 5 vdf
# No output returned

Process Architecture Considerations

The critical realization emerged that VDF computation, while integrated into the baker daemon, operates as a distinct operational mode rather than an additional feature that can be layered onto existing baker functionality. This understanding led to the recognition that implementing VDF required either modification of the existing DAL baker configuration or deployment of a separate, dedicated VDF computation process.

Given the substantial investment in DAL optimization and the confirmed success of the existing DAL attestation system (collecting approximately 46.7 ꜩ per successful attestation), the decision was made to pursue a dual baker architecture that would preserve existing DAL functionality while adding VDF computational capability through a separate process.

🛠️ Technical Implementation and Command Syntax Resolution

Initial Implementation Attempts and Syntax Challenges

The first implementation attempt utilized the standard VDF deployment pattern, which resulted in immediate process termination with exit code 1. This necessitated detailed error analysis through log examination, which provided critical insights into the Octez baker command structure.

nohup ./octez-baker-PtSeouLo run vdf -K \
  -E http://127.0.0.1:8733 > vdf_separate.log 2>&1 &

Error:
  Unexpected command line option -E.

Global options (must come before the command):
  -E --endpoint : HTTP(S) endpoint

Command Syntax Correction and Process Architecture

The analysis of the error output led to the recognition of the correct command structure for Octez baker operations. Global options, including endpoint specifications and base directory declarations, must precede the operational command, while command-specific options follow the command specification.

nohup ./octez-baker-PtSeouLo --base-dir /home/mike/.tezos-client \
  -E http://127.0.0.1:8733 run vdf -K > vdf_fixed.log 2>&1 &

🏆 Results and Operational Validation

Dual Baker Architecture Success

The implementation of the corrected command syntax resulted in successful deployment of the dual baker architecture. Process verification confirmed the coexistence of both baker processes, with each maintaining distinct operational responsibilities without interference.

# Process listing confirmation
ps aux | grep octez-baker | grep -v grep

mike 774932 ./octez-baker-PtSeouLo --base-dir /home/mike/.tezos-client \
  --endpoint http://127.0.0.1:8733 run with local node \
  /home/mike/.tezos-node-fresh consensus_key companion_key \
  --liquidity-baking-toggle-vote pass --dal-node http://127.0.0.1:10732

mike 830197 ./octez-baker-PtSeouLo --base-dir /home/mike/.tezos-client \
  -E http://127.0.0.1:8733 run vdf -K

This process listing confirmed successful implementation of the dual baker architecture, with process 774932 maintaining DAL attestation functionality and process 830197 providing VDF computational capability.

VDF Network Participation Validation

The VDF baker process demonstrated immediate integration with the SeoulNet VDF ecosystem, as evidenced by comprehensive log analysis. The continuous monitoring and challenge detection across multiple blockchain levels demonstrates process stability and persistent connectivity to the underlying Tezos node infrastructure.

Aug 20 18:21:15.605 NOTICE │ Skipping, VDF solution has already been injected (level 876141)
Aug 20 18:21:19.461 NOTICE │ Skipping, VDF solution has already been injected (level 876142)
Aug 20 18:21:23.515 NOTICE │ Skipping, VDF solution has already been injected (level 876143)
Aug 20 18:21:27.601 NOTICE │ Skipping, VDF solution has already been injected (level 876144)

Resource Utilization and Performance Analysis

The dual baker architecture demonstrated effective resource allocation without creating system conflicts or performance degradation. The VDF computation process operates with distinct resource requirements from the DAL attestation system, utilizing CPU resources for cryptographic computation while the DAL system focuses on network communication and data verification.

📊 Technical Analysis and Operational Implications

Process Isolation Benefits

The dual baker architecture provides several significant advantages over alternative implementation approaches. By maintaining separate processes for DAL attestation and VDF computation, the system achieves operational resilience where failure or modification of one component does not impact the other. This isolation proved particularly valuable given the substantial economic importance of the existing DAL attestation system.

The separation also enables independent optimization of each component. The DAL baker process maintains its sophisticated network configuration and P2P optimization, while the VDF process can be independently tuned for computational performance without affecting the carefully calibrated DAL networking parameters.

Competitive Dynamics in VDF Ecosystem

The operational behavior observed in the VDF implementation provides insights into the competitive dynamics of the SeoulNet VDF ecosystem. The consistent pattern of "already been injected" messages indicates active participation by multiple network participants, creating a healthy competitive environment that ensures reliable VDF completion across network cycles.

This competitive environment validates the economic model of VDF participation, where the small reward for successful VDF completion motivates sufficient network participation to ensure system reliability while preventing centralization around a small number of high-performance computation resources.

Integration with Existing Infrastructure

The successful implementation demonstrates the viability of incremental optimization approaches in complex blockchain infrastructure deployments. Rather than requiring comprehensive reconfiguration of existing systems, the dual baker architecture enables additive enhancement that preserves existing optimizations while expanding functionality. This approach proves particularly valuable in production environments where disruption of existing, successful configurations carries significant economic risk.

💰 Economic Impact and Network Contribution

Reward Stream Diversification

The implementation of VDF computation capability adds a third reward stream to the baker configuration, complementing existing baking rewards and DAL attestation rewards. While individual VDF rewards are modest compared to DAL attestations (typically a few tez compared to approximately 46.7 ꜩ per DAL attestation), the cumulative impact contributes to overall baker optimization.

The VDF reward mechanism operates on a winner-take-all basis, where the first participant to complete the computation and submit a valid solution receives the full reward. This creates an interesting economic dynamic where high-performance computational resources can achieve higher success rates, but the distributed nature of VDF challenges ensures opportunities for various participants across different computational capabilities.

Network Security Contribution

Beyond the direct economic benefits, VDF participation contributes to the broader security and decentralization of the Tezos network. Each additional VDF computation participant increases the resilience of the randomness generation mechanism and reduces the risk of manipulation or centralization around a small number of participants. The participation of residential and smaller-scale baker operations in VDF computation contributes to the overall health and decentralization of the network's randomness infrastructure.

📋 Operational Recommendations and Best Practices

Dual Baker Architecture Guidelines

For operators implementing VDF capability alongside existing DAL or other specialized baker functionality, the dual baker architecture demonstrated in this implementation provides a robust framework. The methodology requires thorough understanding of existing system configurations and careful analysis of potential conflicts, but provides a path to enhanced functionality with managed risk exposure.

# DAL Baker Process (Preserved Configuration)
./octez-baker-PtSeouLo --base-dir /home/mike/.tezos-client \
  --endpoint http://127.0.0.1:8733 \
  run with local node /home/mike/.tezos-node-fresh \
  consensus_key companion_key \
  --liquidity-baking-toggle-vote pass \
  --dal-node http://127.0.0.1:10732

# VDF Baker Process (New Implementation)
nohup ./octez-baker-PtSeouLo --base-dir /home/mike/.tezos-client \
  -E http://127.0.0.1:8733 \
  run vdf -K > vdf_fixed.log 2>&1 &

Incremental Optimization Strategy

The methodology employed in this implementation demonstrates the value of incremental optimization approaches in complex blockchain infrastructure. Rather than attempting comprehensive reconfiguration of existing systems, operators can achieve significant improvements through carefully planned additive enhancements that preserve existing optimizations.

🎯 Conclusions and Project Outcomes

Implementation Success Metrics

The VDF implementation project achieved complete success across all defined objectives. The dual baker architecture enables simultaneous participation in both DAL attestation reward collection and VDF computation competition without operational conflicts or performance degradation. Process isolation ensures that the substantial investment in DAL optimization remains protected while adding VDF computational capability.

The technical solution demonstrates effective command syntax resolution, proper resource allocation, and successful integration with the SeoulNet VDF ecosystem. Log analysis confirms active network participation and readiness for VDF reward collection opportunities.

Architectural Contribution

The dual baker architecture developed and validated in this implementation contributes valuable operational knowledge to the Tezos baker community. The methodology provides a replicable framework for incremental functionality enhancement in complex blockchain infrastructure deployments, demonstrating how specialized optimizations can be preserved while adding new capabilities.

Network Participation Enhancement

The successful implementation adds another participant to the SeoulNet VDF ecosystem, contributing to the decentralization and reliability of the network's randomness generation infrastructure. While individual VDF rewards may be modest, the cumulative contribution to network security and the demonstration of distributed VDF participation represents significant value to the broader Tezos ecosystem.

The implementation validates the viability of VDF participation in residential and small-scale baker environments, encouraging broader network participation and contributing to the overall health of the decentralized infrastructure.