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How do super nodes make money Super node profit model

Date:2024-05-02 18:02:30 Channel:Trade Read:
In today's digital currency field, super nodes play a vital role. They not only support the operation of the blockchain network, but also provide profit opportunities for participants. So, how do super nodes make money? What is the profit model of super nodes? Let’s delve deeper into this topic.
In-depth analysis of super node profit model
1. Transaction fee
As part of the blockchain network, super nodes maintain the normal operation of the network by verifying transactions and packaging blocks. In this process, super nodes can obtain a certain proportion of transaction fees as compensation. Taking Bitcoin as an example, super nodes are responsible for verifying transactions and adding new blocks to the blockchain, and the transaction initiator will pay a certain handling fee, part of which will belong to the super node.
Example: If a Bitcoin super node verifies 1,000 transactions in a block, and the handling fee for each transaction is 0.001 BTC, then the super node will receive a handling fee of 1,000 0.001 = 1 BTC as income.
2. Incentive rewards
In order to encourage the participation and contribution of super nodes, some blockchain projects will set up reward mechanisms. These rewards can be newly issued tokens or dividends from original tokens. Supernode holders can earn these rewards by participating in the operation of the network and investing resources.
Example: Taking EOS as an example, super nodes can obtain token rewards by obtaining network block production rights and gaining voting support. These rewards can become one of the important sources of super node profits.
3. Delegate voting
Some blockchain projects allow currency holders to delegate tokens to super nodes for voting to influence the governance and development direction of the network. Super nodes can increase their profits by attracting more delegate votes, which is also a common profit model.
Example: In the TRON network, currency holders can entrust TRX tokens to super representatives, vote to support the super nodes they recognize, and obtain corresponding rewards.
4. Additional services
In addition to the basic profit model, some super nodes also provide additional services, such as data storage, smart contract execution, etc., to provide users with value-added services and obtain additional income.
Example: IPFS super node provides distributed storage services. Users can store data on the IPFS network and pay a certain fee to the super node provider.
Conclusion
As a key participant in the blockchain network, super nodes stimulate the enthusiasm of participants through various profit models and maintain the stable operation of the network. Transaction fees, incentive rewards, delegated voting and additional services provide diversified ways to make profits for super nodes, and also provide opportunities for currency holders and investors to participate in network governance and share profits. With the continuous development of blockchain technology, the profit model of super nodes will also continue to evolve, injecting new vitality into the prosperity and development of the entire industry. Let us look forward to the super nodes showing more possibilities and opportunities in the future development.

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Before answering this question, the editor of the currency circle will first introduce to you the super nodes. It is clearly stipulated in the EOS white paper that the blocks in the EOS.IO software will be generated by 21 producers. These 21
A producer is what we often call a “super node”, and the selected super node will be EOS
The network provides computing power and bandwidth support. Their main task is to collect transaction information, package it into blocks, and broadcast the blocks to other nodes. After verification, the blocks are uploaded to the blockchain to obtain corresponding rewards. . After understanding the super nodes, let’s get back to the topic, how do super nodes make money? Below, the editor of the currency circle will introduce to you the profit model of the super node.

 How do super nodes make money?

Super node income comes from block production rewards. The reward given by EOS to super nodes (by issuing additional EOS) is currently 1% per year, which is 10 million EOS. If 21 nodes share it equally, based on the EOS price of 50 yuan, each node will receive 470,000 EOS, worth 23.5 million yuan. (If EOS neither falls nor rises). Compared with the benefits, the cost is simply a drop in the bucket, so there is a scene of "countless heroes competing to give up".

Let’s briefly introduce the process of block generation in EOS. Super nodes can be understood as miners in the POW system. The block production process of EOS is similar to that of the Bitcoin system, which collects transaction information in the network and packages it into blocks. The difference is that the super nodes in EOS do not need to complete the entire workload to prove it, and can directly broadcast blocks to the network for other nodes to verify.

In the EOS system, every 126 blocks generated is one block cycle, that is, each super node should generate 6 blocks in one block cycle. During the block period, the EOS system is set to generate a block every 0.5 seconds. At the beginning of each block cycle, EOS will elect 21 super nodes based on the token voting results. Then these 21 super nodes will agree on a block generation order, and these nodes will generate a block every 0.5 seconds in this order.

If a node does not produce a block within the specified time, the block will be skipped and a timestamp gap will be left on the blockchain. If a node has not generated blocks in the last 24 hours, it will be removed from the super node candidate list. Once a node completes block production and is verified by other nodes, it can add the block to the blockchain and obtain new tokens as block rewards.

Interestingly, the white paper stipulates that the median of the expected rewards of all supernodes determines how many new tokens the system will eventually generate. Moreover, the EOS system has a rigid condition, that is, the number of new tokens generated each year cannot exceed 5% of the total token supply. There is also talk that 50% of the newly generated tokens will belong to the 21 super nodes, and the other 50% will belong to the remaining 100 candidate nodes.

The 50% figure has not yet been officially confirmed, but in the DAWN-446 proposal, Dan Larimer believes that the production rewards should be divided into three parts, respectively as super node block production rewards, backup node rewards and new proposal rewards. The specific proportion is not yet known. clear.

 Development prospects of super nodes:

First of all, ETH is the first to launch smart contracts. Running smart contracts on ETH is not free and depends on your gas. Once the gas is exhausted, the contract will stop. According to people who have used it, the ETH trading platform is slow, laggy, and expensive. But EOS does not have this problem. Running contracts on EOS depends on the number of EOS you have. The more EOS you own, the more you can rent and the more rewards you will receive. Secondly, it is very simple to develop DPOS on EOS. You do not need to write a lot of modules yourself, because EOS itself has built underlying modules for developers, which provides a platform and greatly lowers the development threshold; here, as an ordinary Investors, owning EOS is equivalent to owning land and real estate, which can be used to rent out and earn funds.

Dan Larimer believes that production rewards should be divided into three parts, namely, super node block production rewards, backup node rewards, and new proposal rewards. The specific proportion is not yet clear. EOS tokens represent
EOS
The usage quota of bandwidth, computing power, storage space and other resources in the ecosystem. Build a good ecosystem and attract developers to develop high-quality applications. As more and more businesses are carried out on the EOS blockchain, the resources on EOS will become a scarce commodity, thus supporting the price of EOS tokens and allowing it to
the moon.

Through the above introduction, I believe everyone has an understanding of how super nodes make money. In fact, super nodes are not as magical as investors think. In fact, super nodes are mining sites. However, once super nodes start operating, super nodes may become Different, the main difference is that the difference depends on how the node wants to utilize the EOS ecosystem.

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