• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Analyzing Solana's Approach to Node Operation Cost Reduction

user avatar

by Giorgi Kostiuk

2 years ago


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.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Trump Signals Potential Iran Deal Within Days

chest

US President Donald Trump indicates that a deal with Iran could be finalized in the next two to three days, impacting Bitcoin and oil markets.

user avatarTando Nkube

Investigation into Kim Byungki's Alleged Influence on Bithumb Hiring

chest

Investigation into allegations that Kim Byungki used political influence to secure a job for his son at Bithumb.

user avatarRajesh Kumar

Bitcoin Production Cost Reaches Critical Level

chest

Capriole Investments founder Charles Edwards highlights that Bitcoin is currently trading at its Production Cost of approximately $62,650, indicating a critical point for miners.

user avatarSatoshi Nakamura

Bitcoin Hashrate Declines Amid Market Pressure

chest

Recent data shows a decline in Bitcoin's Hashrate, indicating that some miners may have disconnected from the network due to unfavorable market conditions.

user avatarNguyen Van Long

Bitmine's Major Ethereum Acquisition Signals Institutional Confidence

chest

Bitmine, led by investor Tom Lee, has purchased $213 million in Ethereum, increasing its holdings to 4.59% of the total supply.

user avatarKofi Adjeman

Seoul Police Conduct Second Search at Bithumb Headquarters

chest

Seoul police returned to Bithumb's headquarters for a second search related to a corruption probe involving independent lawmaker Kim Byungki.

user avatarJesper Sørensen

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.