Loki Launched Their Service Nodes
Loki is a hybrid blockchain project that allows users to interact in a secured, private and anonymous way. By hybrid, it means that Loki uses both Proof or Work and Proof of Service to reach consensus. Additionally, the blockchain allows for application development. In their words:
By combining a private transaction network, the $LOKI cryptocurrency, with economically incentivised Service Nodes, Loki creates a trustless quorum based mixnet called LokiNET.
LokiNET has a private messaging service known as Loki Messenger, as well as an option for front end applications known as Service Node Apps (SNApps).
It is worth noting that Loki is the first fork of Monero to have actively implemented the concept of masternodes. Masternodes are called Service Nodes in Loki, and to an extent perform the same functions.
Loki Service Nodes
The Loki team has explained that they will be rolling out updates on the functionality of their Service Nodes with time. This is to ensure stability in the network. For a start, Service Nodes will be tasked with responsibility of storing a full copy of the blockchain, which will operate in real time and upload an uptime proof every hour. Service Nodes that fail to upload an uptime proof in 2 hours will be deregistered by voting quorums.
As with masternodes, although they secure the network, the usefulness and profitability of the masternodes tilt in favor of their holders. In order to make Service Nodes more useful to end users, Loki has disclosed a medium-term plan, which entails the following:
- Service Nodes will double as remote nodes to deliver the blockchain to users.
- Each Service Node will be able to run tests and collect data on other nodes in the network.
- Service Nodes can deregister underperforming nodes once consensus is reached.
The long-term plan for Service Nodes, which is expected to roll out in the next 6 to 12 months will ensure that the Nodes have “high capacity bandwidth connections” to allow for routing data. LokiNET is expected to have become a matured mixnet that provides anonymous access to the internet.
In conclusion, the required collateral to host a Service Node is 45,000 LOKI coins. As at press time, this is about $12,717. Unlike most masternodes that have a fixed collateral requirement, the stake for Loki’s Service Nodes will decrease with time.