Validator Entry Thresholds on the Decline as Cloud-Based Staking Challenges Surmounted – Technology Bitcoin News

Through the novel use of hardware security modules in conjunction with a communication module, collaboration between Bluzelle and Equinix will greatly reduce the barriers that prevent potential Proof-of-Stake node validators from evenly distributing opportunities.

Lower cloud hosting barriers are transforming the validator landscape

The gradual transition to Proof-of-Stake (PoS) consensus algorithms has addressed some of the most pressing issues facing larger blockchain adoption, such as: B. Scalability and energy consumption. Despite these enormous advantages over conventional PoW (Proof-of-Work) blockchains, the staking out for potential nodes was a major hurdle for potential node validators.

For an industry that is keen to create a level playing field for all parties and participants, the costs of running a validation node are notoriously high due to the hosting and security requirements involved. These costs include running a robust and high-performing private infrastructure that excludes the participation of most people.

Accordingly, only companies that have the capital to finance the private hosting infrastructure and enterprise security protocols can participate in the stakeout and effectively deny access to small and medium sized validators.

At the same time, securing information on a cloud network has proven impressive, even though the cloud hosting architecture is very accessible to ordinary people and can effectively match the private server infrastructure in terms of speed, performance and availability

With the latest HSM (Hardware Security Module) solution, which is provided for cloud environments, the stranglehold of the infrastructure on validator nodes can no longer prevail.

Migration to the cloud hosting environment

One of the main reasons why node validators do not work in the cloud infrastructure are security conditions under which a validator’s private keys can be exposed. Validator nodes must perform well to maintain the node’s reputation. If a node is compromised for any reason and violates the blockchain’s staking protocol, it can degrade reputation and result in a slash, effectively meaning that some or all of the coins staked in a node will be lost.

Since it is not possible to secure the private keys required to communicate with the network and validate blocks of transactions, cloud staking has been ignored as a solution for small and medium-sized validators. This is where HSMs emerged in response to the equality of the validator playing field.

Distributed database solution Bluzelle, in collaboration with digital infrastructure provider Equinix, has introduced a workaround that enables validators to effectively protect their private keys from being compromised by cloud networks. By connecting the Equinix Smartkey HSM to the Bluzelle communication module, the exchange between a blockchain network and a validation node cannot be interrupted without the private keys protected by the HSM being made available.

Validator potential for everyone

Bluzelle’s novel solution will lower all staking barriers by making the operation of a cloud-based node much more affordable without compromising on security. This opens the doors to anyone with a regular computer who wants to become a network validator.

By including the HSM for companies, validators do not have to set up a private infrastructure and at the same time benefit from the affordable costs of using providers such as Amazon Web Services and Google Cloud. In addition, cloud hosting offers the high speeds and performance necessary to maintain the reputation of validator nodes.

This new layout solution will initially only be available for Cosmos. Still, Bluzelle intends to expand compatibility with other blockchains in the future, including Ethereum, to provide unprecedented access to stakes for community members previously left behind by high infrastructure barriers.

Do you think that reducing the entry barrier for validators will significantly increase their number? Let us know in the comments below.

Photo credit: Shutterstock, Pixabay, Wiki Commons, Addiction Treatment

Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or an invitation to submit an offer to buy or sell, or a recommendation or approval of products, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.

Stay in the Loop

Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

Latest stories

- Advertisement - spot_img

You might also like...