Do you make money by building a node? How to choose a public chain? We chatted with a node operator

From the earliest Bitcoin, to Litecoin, the early stage of Ethereum, etc., the hardware mining (computing power) at that time was based on the PoW consensus mechanism, which also made miners the most "upstream" role in obtaining tokens.

In 2011, QuantumMechanic proposed Proof of Stake (PoS) for the first time in the Bitcointalk forum, which replaced the weight of computing power by holding currency, which attracted the attention of many early participants. Subsequently, different public chain teams successively developed PoW+PoS hybrid consensus mechanism, DPoS, BFT+PoS and other PoS mechanisms, and gradually evolved well-known projects like ETH 2.0, Cosmos, Solana, Sui, Aptos and so on. Some public chain infrastructure builders have also gradually shifted from PoW mining to PoS-based node operators.

A more popular explanation for node operators is that they are workers responsible for maintaining the integrity and correctness of blockchain ledger records. It is equivalent to the birth of a new public chain that needs to be created by the development team, and then needs to be maintained by node operators.

Whether it is a miner or a node operator, as a public chain infrastructure server, it maintains the stable block generation of the network and obtains stable "coin-based" income.

The specific work content and processes of node operators are often covered with a veil of mystery, and my personal knowledge of the people engaged in node service providers is relatively limited. In the current market environment, do newcomers still have the opportunity to participate in node operations, which chain has a more attractive benefit/cost ratio, and what are the risks of participation? With these questions in mind, Odaily Planet Daily and MJ (pseudonym), a node service provider who has been in business for many years, exchanged views on the above issues, and organized the content as follows:

**Odaily Planet Daily: What capabilities do you think you need to be a node service provider? **

**MJ: **First of all, your investment philosophy should be based on long-term value investment as much as possible, and your judgment will not be affected by short-term fluctuations. Secondly, it is necessary to continuously improve one's own awareness of the public chain, to understand the consensus mechanism of the public chain and to update the technology of the target public chain (especially the new public chain). Finally, it is best if you have the technical ability yourself. If you don’t have it, try to find someone with technical ability to cooperate with you.

**Odaily Planet Daily: What kind of hardware is needed to build a node, and what is the approximate cost? **

**MJ: **Different projects have different requirements. Generally, detailed configuration requirements can be found on the official website of each project. I can briefly describe the cost and requirements of relatively well-known projects in terms of approximate costs.

  1. Bitcoin: Professional mining machines are used, generally starting at $100,000, suitable for institutions to operate.

  2. The entry threshold of Ethereum is relatively easy. If you build a node by yourself, you must pledge at least 32 ETH; you can also use Lido, etc., with a lower threshold. The corresponding income will also decrease.

  3. Solana and Avalanche have high hardware requirements, and the monthly bandwidth cost exceeds 1 w.

  4. The hardware cost of Sui and Aptos is high, the number of nodes is small, and the construction cost is about 1-5w yuan.

  5. The threshold for a new public chain (TFSC) in the development network stage that we recently participated in is relatively low, with 8 cores of 16 G, memory of 16 G, hard disk of 500 G, and upstream and downstream bandwidth of 50 M. construction cost.

**Odaily Planet Daily: As far as I know, you have experienced the node construction of many public chains. What points do you focus on when considering the target public chain? **

**MJ: **Obviously, the core point of everyone’s attention is income, but income is result-oriented, and the level of income depends on your judgment on this project. I personally have the following considerations:

  1. I think it is unlicensed entry, which means that the entry and exit thresholds for node construction are relatively low.

  2. Tokens should have a wide audience, and the unit price should be as low as possible, which will help increase the number of participants, such as meme coins.

  3. The project party's support for the ecology, such as encouraging DeFi, GameFi, cross-chain and other applications through the foundation.

  4. Is there any innovation in the underlying technology of the public chain, and how to optimize TPS and Gas fees, which is conducive to undertaking subsequent ecological development.

  5. It is best to be compatible with EVM, which is conducive to the influx of developers.

Finally, the income depends on the price at the time of selling after acquiring the new coins. This requires improving the ability to recognize the project, or having the scale effect of large funds.

**Odaily Planet Daily: As a node service provider, besides earning income through packaging blocks, do you have any other income increase items? **

**MJ:**Most of the mainstream public chains now adopt PoS. In addition to the benefits brought by the daily work of nodes, there are also tokens like Ethereum that issue bonuses. Some new public chains also have test airdrops and client benefits (proxy Individuals without operating capacity) and other mechanisms.

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