Validators are servers that run the Solana network. They process transactions, form blocks, and validate the Solana blockchain's state. Validators = Solana.
What Do Validators Do?
Validators are the eyes and ears of the Solana blockchain. They validate transactions, vote for the blocks to be added to the blockchain, and keep track of the entire history of the blockchain. This history grows in gigabytes (now terabytes) every day.
Solana combines Proof-of-Stake (PoS) with a new cryptographic consensus method called Proof-of-History (PoH) that enables validators to reach consensus by ordering time via a cryptographic hash instead of through communication across the network. The benefit here is that the validators don't have to waste computing power confirming the validity of the timestamps, meaning validators get consensus faster.
Validators must first have a minimum 32 SOL in staked SOL, which is collateral for the validators to participate in the Solana network. The idea is that validators must have "skin in the game" to keep the network honest. If you don't comply with the validator's requirements, you can lose your staked SOL as a penalty. You will also lose it if you try to cheat. If your node is a good one, you'll make rewards with your staked SOL, currently at 7-9% APY. If the idea of running your own node seems difficult, you don't have to. There are many alternatives ways to earn on Solana, one of which is to delegate your stake to a 3rd party validator node and earn rewards, minus fees or commissions.
Validator Hardware Requirements and Minimums
Because running your own validator node takes such powerful hardware, it costs a lot of capital to start one. To get started, you'll need a setup that includes:
- CPU: 12+ cores @ 2.8GHz (or faster)
- RAM: 256GB (we recommend at least 512GB)
- NVMe storage: 3 (for accounts, ledger, snapshots), minimum of 2-3TB
- Gigabit symmetric internet (up and download speed equal)
The network can support thousands of transactions per second, and the speed that your node is handling these transactions must be equal to or faster than the speed of the transactions being sent into the blockchain. If your node is slower, or if your bandwidth is slower than your node, your validator nodes may drop blocks, which would reduce your profits.
You will be assigned slots where your validator will have to be running 100% of the time during that period, so your node's uptime is expected to be around 99.0%+. If your node goes offline during these slots, your node won't be able to earn rewards. If it happens too frequently, or if you try to do anything fraudulent, the network will slash your staked SOL.
Validator Rewards
Validators are rewarded in SOL for transaction fees. Every transaction made on the Solana network requires a fee (currently $0.00025 as of May 2022) to be paid to the node processing it. Validators pool up these fees from the transactions they have processed, and claim it as profit.
Most nodes require you to give them a cut in your rewards. This is a commission, which is how nodes keep the lights on and can continue processing transactions on behalf of other users. However, some nodes like Helius and Jupiter don't require a fee for delegation. This allows delegators to claim 100% of their rewards without any cut going to the node operator. While you are free to support such large, efficient node operators, it is also a great way for Solana to support community-based nodes.
New validators typically have little commission to draw in the validator pool. Once nodes have sufficient validators staked and they have been running for a while, they can expect to charge 5% to 10%.
It's a question of weighing risk and rewards. Let's look at the cost of running a standard validator node on Solana:
- Server hosting $500 - $1,500+
- Bandwidth (highly variable depending on the region and ISP you use)
- Your time (updates, patching, and maintenance)
- A secondary server (redundancy is recommended for serious validators, doubling the cost of your server)
