May 22, 2022

Solana Staking

The main purpose of the validator is to maintain the smooth operation of the node 24/7
Round-the-clock monitoring of the node
All hardware components of the server allow it to work correctly on the network
Back-up power is being used
A stable network connection bandwidth — 1Gbit/s
All unused network ports are closed
Access to the server using a secure method (which prevents interception of control or brute-force of the password with rainbow dictionaries or other means of unwanted access by third parties)
There are no installed or used applications on the server that are not related to the validation of Solana or its maintenance

When you stake, you get involved in a so-called shared-risk shared-reward relationship that can bring profits to both parties: the staker (a delegator or token holder) and the validator (the ledger’s node operator or miner).

A stake determines the ability of a validator to add new blocks to the distributed ledger. The higher stake is delegated to a validator, the more frequently this validator will be picked to verify transactions on the blockchain. The more transactions the validator confirms, the more rewards they will earn and the better compensation they will pay to their delegators.

Generally, staking is a secure way to capitalize on your crypto ownership. Still, there are some possible risks associated with engaging in staking:

• Account loss: if some bad player gets access to your crypto wallet, its content may be forever lost. It makes sense to use only those wallets or crypto services that allow you to recover access to your account using a seed phrase or your private key.
• Volatility of coins. If the coin you have delegated is increasing in value, your stake keeps being profitable. If the value drops, your stake may not be able to cover the losses.
• Impossibility to use the locked assets. As you block your tokens for a certain interval, you will not be able to withdraw your funds until the lock period is over. Sometimes, you can claim the assets before the due date, but in this case, you may be charged a very high fee, without receiving any compensation for your staking.