• 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

Ethereum Buy Orders Surge as Whales Go Long

chest

Buy orders for Ethereum are rising as whales show strong confidence and interest in the cryptocurrency market.

user avatarKenji Takahashi

Ethereum Supply Concentration Among Whales Reaches New High

chest

The concentration of Ethereum among large wallet holders has surged, with whales now controlling over 22% of the total supply.

user avatarDiego Alvarez

Cardano Enhances Connectivity with Major Blockchain Networks

chest

Cardano is making significant strides in improving its interoperability with other major blockchain networks, enhancing user experience and opportunities.

user avatarMaria Fernandez

Ethereum Developer Recovers 1,000 ETH from 2016 ICO

chest

An Ethereum developer known as 0xFlorent has successfully recovered over 1,000 ETH from a failed 2016 crypto project, allowing 48 original investors to claim their previously inaccessible funds.

user avatarGustavo Mendoza

Ripple's Payment Documentation Sparks Interest Among XRP Supporters

chest

A directory in Ripple's Payments documentation has revealed over 500 financial institution identifiers, renewing interest in XRP's potential role in global payments.

user avatarRajesh Kumar

XRP Ledger's Resilience Under Attack Conditions Stressed by Analysts

chest

Analysts emphasize the XRP Ledger's ability to withstand extreme conditions and attacks, making it a reliable choice for financial infrastructure.

user avatarMiguel Rodriguez

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.