Understanding Node Consensus Networks

Introduction

To date, Solana has become the de facto network for high-throughput applications. Over the last few years, the network has seen a rise in its total value locked (TVL), revenues, and user base. Builders continue to push the boundaries of high-throughput protocols and applications with user experience in mind. Solana serves as a base trust layer for economic value; as the ecosystem matures, opportunities arise for builders to scale their applications and services to harness network-centric capabilities. With Solana at its heart, Jito (Re)staking aims to support the flywheel by providing node consensus networks (NCNs) with a framework to bootstrap their networks using any SPL token. This article will explain node consensus networks (NCNs) and how they fit into the Jito (Re)staking ecosystem.

Understanding Node Consensus Networks (NCNs)

NCNs are protocols that utilize a distributed process to validate and confirm information. These networks manage a collection of nodes that work together to verify actions, transactions, and other types of information. Put simply, any system that aims to establish a decentralized network can be considered an NCN.

NCNs can include:

• Blockchains 
• Cross-chain bridges
• Co-processor networks
• Interoperability solutions
• Applications 
• Solver networks
• Oracle networks

And more 

Example

For example, Raydium might not immediately classify as an NCN because automated market makers (AMMs) do not require their own validator set, while Switchboard can be considered an NCN as it is an oracle network that seamlessly connects dapps to real-world data. With Jito's restaking platform, Switchboard can achieve:

• Faster performance with apps running quicker and smoother
• Aligned incentives where nodes are rewarded appropriately
• Better liquidity and composability of assets

Raydium could leverage an NCN if they decided to, for example, launch a decentralized solver network for processing orders.

Cold Start Problem 

For NCN protocols, developers face the challenge of kickstarting their network validation methods and security. Historically, NCNs have built custom network solutions tailored to the protocol's use case, often requiring a sufficiently distributed and economically defensible network. Achieving this level of decentralization can demand significant time and capital. This is where Jito (Re)staking serves as a tool for launching NCNs without the associated overhead costs and operational efforts.

Jito (Re)staking NCNs Ecosystem

Jito allows developers to build robust, low-cost trust systems by providing a highly customizable framework for leveraging any SPL token on Solana as a security mechanism. Jito facilitates a flexible staking marketplace where operators, entities managing nodes in NCNs, and NCNs can opt into each other's services, Jito thus creates an interconnected ecosystem of security. The process begins with the creation of NCNs and operators through the Restaking Program. Operators signal their intent to run the NCN software on-chain and an NCN can opt-in accordingly, establishing a bi-directional agreement that ensures mutual consent and support.

Jito's restaking framework offers several key benefits to NCNs. For starters, customizable parameters enable users to tailor VRTs, NCN, and operator parameters to support a variety of use cases. Tokens can be utilized outside of project-operated NCNs by partnering with other NCNs. Second, granular slashing control provides detailed oversight of slashing conditions and amounts, with flexible and multi-tiered slashing that leverages both on-chain and off-chain information.

Jito also allows operators to participate in multiple NCN systems simultaneously. This multi-NCN support, coupled with specific requirements and incentives, enables operators and vaults to use their stake for multiple services, reducing capital requirements. The system is designed to increase token utility and foster economic activity across the Solana ecosystem.

Wrapping Up 

As Solana continues to evolve, Jito (Re)staking and NCNs will play a key role in driving the ecosystem's growth, enabling projects to leverage advanced staking mechanisms and foster more dynamic blockchain development. Jito aims to become a foundation of Solana's restaking infrastructure, setting new standards for security, flexibility, and scalability.

Projects interested in building on the Jito (Re)staking platform are encouraged to contact us through this form. This includes NCN, VRTs and node operators.