Whitepaper
  • Trusted Node $TNODE WhitePaper
  • Industry Backdrop
    • PoS Blockchains
    • Staking Market
    • Role of Validators
    • Staking rewards
    • Staking Pools
    • Staking-as-a-service (SAAS)
    • DeFi vs. PoS Staking
    • Lending Protocols vs. PoS Security
  • Industry Challenges
    • Entry barriers
    • Centralization and Resilience
  • Solution
    • The Network of Trusted Nodes
    • Unlocking Staking Liquidity
    • Gateway to multichain PoS
    • Democratic Access to PoS Governance and Staking
    • Infrastructure for PoS Security
  • Trusted Node Architecture
    • Inroduction
    • Staking Portal
    • Governance Portal
    • Liquid Staking
    • The Vaults
    • DAO Escrow Contract
  • User Rewards
    • Staking Rewards
    • Liquidity Yields
    • DAO Benefits
  • Trusted Node DAO
    • DAO Governance
  • DAO Revenue Model
    • DAO Architecture
  • Tokenomics
    • $TNODE
    • Token Supply and Allocation
    • Token Sale
  • Roadmap
    • Roadmap
  • Risks
    • Generalities
    • Validator/PoS risks
    • DeFi Risks
    • Network Security
    • Market Risks
  • Disclaimer
    • Disclaimer
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  1. Industry Challenges

Entry barriers

Unlike PoW, PoS blockchains do not require expensive, sophisticated equipment or access to vast amounts of low-cost energy. However, some entry barriers still make many PoS prohibitively expensive and overly complicated:

  • The staking requirements (i.e., 32 ETH are required to run a single Ethereum 2.0 node, worth over $130k as of Oct 2021)

  • The expertise needed to run and secure many validator nodes

  • Access to inexpensive and continuous wifi, which can be prohibitive for node operators in countries and regions of insufficient coverage

  • Difficulty assessing the various PoS protocols in search of the better staking gains

  • Low flexibility to switch between different blockchains as the coins are locked or bonded for a specified period

  • Loss of liquidity when staking

  • Other risks (downtimes, slashing, hacks, network attacks, etc.)

Ethereum, the second-largest cryptocurrency with a devoted network of developers and supporters, has only 7.8 out of 117.8 million Eth staked (as of Sept 2021), that’s around 6.6%.

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Last updated 3 years ago