StrongBlock is the first DeFi protocol that will reward the blockchain node for its performance. The protocol will use their governance token, STRONG, which is an ERC-20 token, as an incentive to nodes.
The blockchain ecosystem is mainly comprised of two objects:
- Miner – A miner creates blocks in the blockchain. It validates new transactions and records them on the global ledger.
- Node – A node or basically a Full Node is a device that contains the complete transaction history of the blockchain. Blockchain nodes are connected, and they transmit, relay, and store decentralized blockchain data.
Miners receive a reward for solving a complex mathematical problem. They also receive rewards in the form of transaction fees. But there are no such monetary rewards assigned for nodes. Also, there is no such rating system that maintains which node is performing better than others.
To address this issue, StrongBlock has come up with a StrongBlock Community DeFi protocol to reward nodes for performing better. Using the StrongBlock platform, users can create a node within seconds. They can also add their node and receive STRONG token rewards every day.
At present, StrongBlock is rewarding over 2800 Ethereum 1.0 nodes, which is approximately 35% of all Ethereum’s active nodes. The rewards will be distributed based upon the risk-taking capability of the node.
Currently, only the Ethereum 1.0 Full Nodes are eligible for STRONG rewards. The platform is planning to extend its support to Ethereum 2.0, Bitcoin, and other protocols.
Strong Token
The STRONG token is an ERC-20 token and the native governance token of the StrongBlock platform. STRONG token holders can participate in governance activities, i.e., to propose, vote, and implement changes to the StrongBlock DeFi protocol. The Strong community also comprises a rating system for nodes that identifies the best performing node in a community and distributes rewards.
In this article, we will explain what are the mandatory things required for the node setup process.
The Application Process
When applying to be a node, you need to provide the following information:
- A valid email address
- A wallet address containing 10 STRONG. You will receive rewards in the mentioned wallet address.
- A valid public website URL
- A unique working RPC endpoint
- A unique working ws endpoint
- A valid sbEthereum.json file on a domain you own. (The domain should match the valid public website URL. The sbEthereum.json must be in a path after the public website URL.)
Example:
Public Website: mynodedomain.com
sbEthereum.json: mynodedomain.com/sbEthereum.json
Your node will become eligible and listed after 48 hours from the time you have staked STRONG in the StrongPool. Node rewards will not commence until a critical mass of nodes has been reached. (NOTE: The date for node rewards to commence is now 10/9/2020).
Node Types
Ethereum mainnet nodes can be divided into three categories, with each having different features and requirements.
- Full (This is the preferred node type for earning STRONG rewards.)
- Verifies network blocks and states
- Stores a full copy of blockchain data
- Data provider for requests
- Light
- Acts as more of a cache vs. full node
- Stores header chain, requests all other data from Full Nodes
- Good for low-capacity platforms
- Archive
- Stores a full copy of blockchain data and states
- Useful for running block explorers, analyzing chain data, etc.
Hosting Method
If you have decided the kind of node you want to set up, the next thing to set is the hosting platform. Below are the different hosting platforms that you can use for setting up your node. Check the pros and cons of each before choosing it as a part of your solution.
- Desktop/Laptop App
- Pros: Easy to start; UI/UX interface without relying heavily on commands.
- Cons: Limited uptime; long downtime resyncs can take quite a while to catch up to the network; consumes system resources and local network bandwidth.
- Server/Headless
- Pros: Better uptime, depending on architecture; does not consume local resources; better hosting architecture choices.
- Cons: Can become expensive, depending on provider, architecture, and node type; need to be comfortable with terminal/shell setup and configuration.
- Third-Party Service
- Currently blocked from applying as a node.
Node Clients
After finalizing the node type and hosting platform, you need to choose the appropriate client for your node.
- Grid (Maintained by Ethereum)
- A desktop application that can launch clients
- Includes one-click solutions to community features
- Geth
- Built-in Go
- Supports fast sync capability
- Parity/OpenEthereum
- Built-in Rust
- Supports Warp sync capability
- Hyperledger Besu
- Built-in Java
- Tracing functionality in Besu API
- Uses Grafana/Prometheus for monitoring
Node Rewards
There are currently two methods to submit nodes for rewards eligibility. Note that the rewards, fees, and availability are subject to change over time.
- Nodes as a Service (NaaS)
Using NaaS, a blockchain user can create a Full Ethereum Node by following some steps that don’t require much technical knowledge.
Also, the protocol is updated to reduce Ethereum gas fees and inflation. To embed these changes, you need to migrate from current mining pools to new ones, and the system will do this migration on your behalf or a tool will be provided to help you.
Key points:
- Allows the users to create an Ethereum 1.0 full node within a few minutes.
- No technical expertise required, node is maintained and hosted by StrongBlock.
- Publicly accessible endpoints.
- Ethereum 2.0, Bitcoin, and others will be added in the future.
- To create your node using our NaaS, a contribution of 10 STRONG to the StrongBlock community is required to participate in rewards.
- Charges a monthly maintenance fee in ETH.
- BYON (currently under construction as of Dec 21th)
Users need to have 10 $STRONG tokens in the wallet. Rewards will be received in the mentioned wallet.
With the BYON option, the user decides whether they will use their equipment (home) or rent a VPS from a provider. You need to install the node software, syncing your node to the Ethereum blockchain, and you will be responsible for any maintenance and costs involved.
Rewards Types
Rewards can be categorized into three sections:
- Node Rewards
The StrongBlock rewards system is primarily focused on nodes. The system has defined a basic daily reward to all the NaaS and BYON nodes, measured in blocks.
- Pool Rewards
Pool rewards are distributed to those supporting the protocol. You can participate by going to StrongBlock Mining.
Strong Pool: Get STRONG rewards for mining STRONG.
UNI-V2 LP STRONG-ETH Pool: Get STRONG rewards to mine with LP tokens.
UNI-V2 LP LINK-STRONG Pool: Get STRONG rewards to mine with LP tokens.
- Node Signaling Rewards
Users can signal one node for each STRONG that they have mined in the Strong Pool. Signaling means which nodes you wish to support. Both you and the node you are signaling receive a small amount of STRONG for your participation, and it will be available until you recall it. Signaling provides rewards for both the signaler and the node being signaled
Mining Deposit To List Your Node on StrongBlock
Users need to fulfill the following criteria and will earn the below benefits for mining:
- User needs to have a balance of 10 STRONG in their wallet to be eligible and claim rewards.
- You will earn STRONG for depositing STRONG.
- At any time, users are allowed to withdraw their deposits. Once withdrawn, you will no longer be eligible for earning node rewards.
- You can deposit your ETH or other ERC-20 and earn mining rewards in STRONG.
Follow this link to get more details about node setup and other requisites.
Social Presence
Conclusion
StrongBlock is the first project focusing on the rewarding of nodes. This is an innovative approach that will motivate the nodes to perform better. The rating mechanism will also help in determining which node is performing well. The platform is planning to extend its support to Ethereum 2.0, Bitcoin, and other protocols and will add features like multiple nodes per wallet, NFT gamification, and marketplace and Node Balancer services that will attract more users in near future. The monetary benefit will attract more nodes, which will help in building a fast, reliable, and resilient DeFi network.
Resources: StrongBlock website
Read More: Bondly Finance – How To Stake the BONDLY Liquidity Pool
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