• 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

IREN Stock Rallies Nearly 7% After Securing $2.8 Billion AI Contract

chest

IREN stock surged nearly 7% after securing a $2.8 billion AI contract.

user avatarLeo van der Veen

White House's Ethics Deal Could Propel CLARITY Act Forward

chest

The White House has reached an agreement on an ethics package for the CLARITY Act, potentially paving the way for its passage in the Senate.

user avatarLi Weicheng

Stablecoin Growth on Solana Enhances DeFi and Payment Applications

chest

The growth of stablecoins on Solana is expected to enhance DeFi lending markets and payment applications.

user avatarMohamed Farouk

Importance of Validator Voting in XRPL Governance

chest

Validator voting is crucial for determining the activation of proposed amendments in the XRP Ledger, impacting long-term network development.

user avatarTenzin Dorje

XRP Ledger Approaches Key Validator Voting Window

chest

The XRP Ledger is approaching a critical deadline for validator voting on proposed protocol amendments that could influence future network features.

user avatarAisha Farooq

Solana's Stablecoin Market Cap Hits $15 Billion

chest

Solana's stablecoin market capitalization has surpassed $15 billion, marking a significant milestone in the network's liquidity growth.

user avatarBayarjavkhlan Ganbaatar

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.