Top 5 Proof-of-Stake Blockchains for Running Self-Hosted Validators
Proof-of-stake blockchains have changed the face of transaction validation and security. For instance, they provide an energy-efficient alternative to the traditional Proof-of-Work (PoW) model. Instead of relying on power-hungry mining rigs, PoS networks allow participants to validate transactions by staking their own tokens. There are two key benefits to this approach. For starters, it provides an opportunity for individuals to earn rewards by running their own validators from home. A self-hosted validator guarantees complete control over staked assets while contributing to the security and decentralization of the network.
However, not all PoS blockchains provide the same level of accessibility for self-hosted validators. Some networks impose high staking requirements, demand enterprise-level hardware, or require you to have extensive technical expertise, making it more difficult for everyday users to benefit from staking and running self-validator nodes.
In this article, we discussed the top 5 Proof-of -Stake Blockchains, paying careful attention to network peculiarities, technical requirements, stacking mechanism and operational risk that should be considered by users looking to run validator nodes
Ethereum
Ethereum is the most valuable PoS blockchain in the space. It switched to PoS in early September 2022. This change has made ethereum much more efficient in terms of energy utilization while enabling ETH holders to participate in transaction validations by staking their coins.
To set up a validator node on the Ethereum network, the first requirement is getting a computer with a modern six-core processor. Additionally, a SSD storage capacity with at least 16GB of RAM is required to prevent the system from malfunctioning whenever there is data processing.
Optimal and stable internet connection is key to running efficient blockchain transaction validation, hence, you will need to have at least 25 Mbps of stable internet.
To complete the process, validators are required to get an execution client and a consensus client. For execution clients, you should consider any of the following: Geth, Besu, or Nethermind, while consensus clients such as Lighthouse, Prysm, Teku, or Nimbus are good option to select from.
While Ethereum boasts of a robust ecosystem and millions of transactions volume, thereby presenting validators an extensive earning opportunity, its major drawback is the high staking requirement - a total of 32 ETH is required for self-hosting an Ethereum validator node.
Solana
Solana has gained widespread adoption thanks to its ability to process transactions at an exceptionally high speed. This high throughput makes Solana an attractive choice for DeFi applications, NFT platforms, and large-scale blockchain ecosystems. However, to run a Solana validator, you need more advanced hardware than most PoS chains. A validator must have a 12-core CPU, 128GB of RAM, a high-performance NVMe SSD, and an internet connection of at least 300 Mbps.
Validators with higher stakes earn greater rewards, and unlike Ethereum, Solana does not impose a fixed minimum stake requirement. Although Solana does not implement slashing penalties, validators who misbehave can have their earnings reduced if their uptime or transaction validation performance is negatively affected.
Despite the demanding hardware requirements and occasional network downtimes that have raised concerns about reliability, Solana remains a great choice for those looking to self-host a validator on a high-speed blockchain with a rapidly expanding ecosystem.
Avalanche
Avalanche is a fast-growing PoS blockchain with sub-second transaction finality and high customization for creating blockchains in the subnet architecture. The setup requirements for an Avalanche validator are an 8-core CPU, 16GB RAM, and SSD storage, all operated on a stable Internet connection.
To participate as a validator on the Avalanche network, you must stake at least 2,000 AVAX, which amounts to roughly $60,000 at current market prices. Just like Solana, Avalanche does not implement slashing penalties. However, you must maintain consistent uptime since rewards decrease for validators who fail to meet operational performance standards. For those interested in scalability and interoperability, Avalanche provides opportunities through its Subnet feature. This allows developers to launch their blockchains under the security of the main Avalanche network.
Cosmos
Cosmos is designed as a multi-blockchain ecosystem that makes it easy for different blockchain networks to communicate with each other using its Inter-Blockchain Communication (IBC) protocol. At the core of this system are validator nodes, which have two major responsibilities: securing the Cosmos Hub and staying connected with independent chains. Running a validator isn’t just about software. It also requires solid hardware, for instance, a minimum of a 4-core CPU, 16GB of RAM, SSD storage, and a stable internet connection to keep things running smoothly.
Cosmos does not impose a strict minimum staking requirement. Technically, a validator can operate with as little as 1 ATOM. However, validators with higher stakes have priority in block validation. Additionally, Cosmos imposes slashing mechanisms for validators who double-sign transactions or experience frequent downtime.
Polkadot
Polkadot makes it possible for multiple blockchains to operate under the same security framework while still keeping control over their governance and functionality. At the heart of this system are validators, who play a key role in securing the network’s interconnected parachains.
Running a Polkadot validator isn’t just about software, a robust hardware specification is required to operate a self-hosted validator node on Polkadot. You’ll need at least an 8-core CPU, 32 GB of RAM, SSD storage, and a reliable internet connection to keep things running smoothly. The validator software itself includes the Polkadot client and the Substrate framework, both essential for network participation.
The minimum amount of staking needed to become a validator isn’t set in stone. It fluctuates depending on network conditions, usually falling between 350 and 500 DOTs.
Conclusion
Running a self-hosted blockchain validator node can be demanding depending on your preferred network. For instance, while Ethereum is considered the most secured network, Solana is a fast-growing blockchain with high-transaction throughput. Additionally, growing adoption and increase in transaction volume present validators with high earning opportunities. However, beyond transaction volume, validators are still required to consider the hardware requirement, staking mechanism, penalty mechanism and more to determine the most suitable network to run validator nodes.