Analyzing Solana's Approach to Node Operation Cost Reduction

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI


Key Points
  • The founder of Solana suggests a method to decrease the high cost of running a node.
  • Solana aims to tackle the high cost primarily due to voting fees.

Anatoly Yakovenko, the creator of Solana, proposed a strategy to diminish the expensive nature of maintaining a node on the network.

This initiative follows the Solana Foundation's choice to cease financial backing for some validators engaged in MEV (Maximum Extractable Value) sandwich attacks.

Evaluating Node Operating Costs

Operating a Solana validator node comes at around $65,000 annually, a notably higher expense compared to an Ethereum validator's operation.

Yakovenko linked the cost disparity to Ethereum's investment in its consensus mechanism, specifically the Boneh-Lynn-Shacham (BLS) signature system.

The BLS scheme allows validators to aggregate multiple independently verified messages, thereby diminishing the overall expenses.

Proposing Solutions by Solana

Although Solana's current model doesn't align with Ethereum's, Yakovenko mentioned the possibility of Solana integrating a similar framework in the future.

He suggested that the introduction of voting subcommittees could lower the vote fees and decrease the voting burden, ultimately reducing expenses.

The recent statistics reveal that 80% of all Solana transactions in the past week were related to votes, highlighting the substantial impact of voting fees on node operation costs.

The implementation of Yakovenko's proposal by Solana remains uncertain.

Simultaneously, amidst increased caution among crypto investors ahead of the FOMC (Federal Open Market Committee) meeting, Solana's value experienced a 6% decrease.

The cryptocurrency's price declined to $145 on June 11th, a level reminiscent of mid-May, driven by market liquidations.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Other Crypto Funds Experience Significant Withdrawals

Other cryptocurrency ETF categories, including Solana and XRP, recorded significant withdrawals, indicating a broader trend of selling pressure.

user avatarSatoshi Nakamura

MEGA Plans AI Marketplace Launch for December

MEGA is set to launch an AI inference marketplace in December, allowing customers to access services from various AI model providers.

user avatarNguyen Van Long

MEGA Reduces Workforce to Shift Focus to AI Products

MEGA has laid off 20 employees as part of a restructuring to expand into artificial intelligence, moving beyond its blockchain infrastructure.

user avatarKofi Adjeman

Institutional Withdrawals from Crypto ETFs Reach Over $1 Billion

Institutional demand for crypto ETFs has weakened significantly, with US spot Bitcoin ETFs experiencing over $1 billion in withdrawals for the second consecutive week.

user avatarJesper Sørensen

Ethereum Staking Hits Record Levels Despite Price Drop

Ethereum's staking rate has surged to an all-time high of 36.3% of total supply, even as the price of ETH has fallen to around $2,000.

user avatarRajesh Kumar

Jane Street Boosts Bitcoin ETF Holdings Amid Market Changes

Jane Street has significantly increased its stake in major Bitcoin ETFs, particularly in Fidelity's Wise Origin Bitcoin Fund, reflecting strong client demand and trading activity in the Bitcoin market.

user avatarLucas Weissmann

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.