Challenges
Background
Solana is a blockchain platform known for its exceptionally high transaction speed, scalability, and low-cost transaction processing, making it a significant step towards mass adoption. Solana has generated numerous innovative platforms and applications, expanding the possibilities of blockchain technology.
Solana: https://solana.com/
Given this context, expanding and decentralizing validators in Solana, which uses a Proof of Stake (PoS) consensus, is critical to ensuring the network’s security and health. A larger number of validator nodes and more widely distributed staking make the network more resistant to external attacks and enhance its credibility as a truly decentralized network.
In PoS, validating the legitimacy of transactions requires the consensus of over 66% of the network. Validators play a key role in achieving this consensus. However, if a malicious group gains control over validators with over 66% of the staked tokens, they could manipulate the blockchain to approve fraudulent transactions.
The distribution of staking among validators is thus crucial. If a few validators hold a large portion of the total stake, it becomes easier for malicious entities to take control by aligning with those few validators. Conversely, if the stake is spread across many validators, taking control of the network would require compromising many more validators, making an attack more difficult.
For example, if one validator holds 10% of the total stake, a malicious group could take over the network by controlling just seven validators. However, if each validator holds only 0.1% of the total stake, it would require controlling 660 validators to achieve the same 66% consensus. Therefore, expanding the number of validators and decentralizing staking are essential for enhancing the network's security and ensuring the sustainability of the blockchain.
Current Situation
According to the "Solana Foundation Validator Health Report: March 2023," there were 2,421 validators on the Solana mainnet as of March 23, 2023.
Solana Foundation Validator Health Report: March 2023: https://solana.com/news/validator-health-report-march-2023
However, the "Validator Health Report: October 2023" reported a decrease to 1,961 validators by September 6, 2023, even as the number of validators on other blockchains has been increasing.
Validator Health Report: October 2023: https://solana.com/news/validator-health-report-october-2023
By August 2024, the number of Solana validators had further decreased to 1,430.
A critical concept here is "Superminority." A superminority consists of the validators that collectively hold the top 33% of the total staked tokens in the network. Controlling this 33% would allow external attackers to halt the network. Currently, Solana's superminority consists of 18 validators.
To improve network security, it is vital to increase the number of validators and prevent staking from being concentrated among a few validators. With more validators participating and staking widely distributed, the number of validators in the superminority would increase, making it more difficult for attackers to halt the network. This is a necessary step to maintain the health of the Solana network.
Solana Beach - Validators: https://solanabeach.io/validators
Despite the decrease in the number of validators, the price of Solana tokens has been rising, indicating that the decline in validators is not due to reduced incentives caused by token price drops.
CoinMarketCap - Solana: https://coinmarketcap.com/currencies/solana/
Reasons for the Decline in Validators
High Technical Requirements
Operating a validator on the Solana network requires high technical skills. Validators need to continually keep up with the latest software and protocols to maintain network stability and security. However, unlike Ethereum, Solana does not offer an "Out of the Box" solution; each validator must independently ensure advanced server specifications and configurations. This creates a significant barrier for new participants and raises the entry threshold.
Additionally, Solana prioritizes the speed and quality of software updates and is currently in mainnet beta, which often delays official documentation updates, making it difficult to access the latest information, further increasing technical challenges.
Solana Validator Requirements: https://docs.solanalabs.com/operations/requirements
High Maintenance Costs
Validator operation requires 24/7 server maintenance and frequent updates. To keep the network running smoothly, continuous monitoring, alert management, and quick response to software updates are essential. These maintenance costs impose a significant burden, especially on small and medium-sized validators.
High Server Costs and Staking Break-Even Point
Operating a validator requires high-performance servers, which are not inexpensive. Although the Solana Foundation offers staking support through programs like the Testnet Delegation Program (TDS), these are temporary supports and insufficient for long-term operation. Currently, validators need around 50,000 SOL in staking to break even, and failing to reach this level results in a deficit operation.
Thus, in addition to technical and economic burdens, validators must also engage in effective marketing to increase their staking. Validators need to actively promote their services within the network to attract more stakes. Without sufficient marketing, it becomes challenging to gather enough staking, making it difficult to continue operations.
These combined technical, maintenance, server cost burdens, and marketing needs have led many small and medium-sized validators to cease operations, preventing the advancement of network decentralization. If this trend continues, the security and decentralization of the Solana network could be at risk.