Node Operation For All: Powered by NaaS
Introduction
Aethir has brought a decentralized cloud computing revolution to the world. With credible goals in mind, Aethir has taken a unique and modern approach to solving an important issue of our times—democratizing and optimizing the way the world uses GPU computing power.
By taking a novel node-sale approach, Aethir has put power in the hands of individuals from the outset. A key part of Aethir’s ecosystem is users running checker nodes, who are also rewarded in the process. The unique validation method, however, necessitates that users be well-informed about nodes and their importance, while also finding a financially profitable way to own, run, and operate nodes efficiently.
Luganodes, as a validator, staking, and restaking infrastructure provider, has immense experience in node operation and maintenance. Across 45+ networks, our SRE teams are active 24/7 to ensure the highest uptime for the nodes we run.
In this article, we aim to share some of that knowledge, clarifying the importance of node performance. We also provide a closer look into the workings of Node-as-a-Service (NaaS) offerings, which are now available for Aethir Node holders.
Understanding Node Performance
Running checker nodes is a significant responsibility. In Aethir’s architecture, these nodes play a crucial role in maintaining the network's integrity. The container is where the actual use of the cloud occurs, and the checker node verifies that the container is configured and performing correctly.
- Checker nodes must perform well according to several key performance indicators:
- Uptime: Checker nodes, like other nodes, must have consistent availability.
- Latency: High bandwidth is essential for the proper functioning of the entire system.
- Optimal Resource Allocation: Node operators must have adequate hardware resources to ensure smooth operation.
Failures in checker node performance, such as offline time and incorrect calculations, are critical issues. Depending on the amount of incorrect calculations by a checker node in a month, there can be penalties, including bans and possible cancellations. This underscores the importance of properly operating a checker node.
What is NaaS (Node-as-a-Service)?
While relatively straightforward, running a node requires certain specific minimum hardware requirements. And running it to maintain proper performance, requires the operator to ensure or exceed the requirements. And if the user has multiple nodes, the requirements multiply proportionally. Ensuring proper performance is a must, since not doing so may lead to penalties.
These criteria are what led seasoned node operators such as Luganodes to step up with a solution that benefits node owners, by addressing scalability concerns, providing high performance, and ensuring rewards. This alternative route is termed Node-as-a-Service (NaaS)
Node-as-a-Service (NaaS) to put it simply is an offering where node holders can delegate their licenses to a node operator. The node operator handles the entire procedure of setting up, maintaining, and monitoring the node. The provider will also handle hardware scaling and provide extra interfacing tools for the node owner. All this is provided at a nominal fee.
Why Choosing a NaaS is a Better Option for Most People
Individual Node Operator Experiences
As node operators, we actively engage with the community, including those running nodes from their homes. This interaction brings us closer to understanding the community's needs, allowing us to develop products that truly reflect these requirements. During the creation of our NaaS offering, we interviewed various individual node operators who shared their experiences.
- Most individual node runners aim to meet the "good enough" requirements but often encounter issues like penalties. These issues can be mitigated by strictly adhering to the recommended specifications.
- Monitoring experiences differ across projects, yet regularly checking on nodes is essential. Several respondents recommended implementing a monitoring system.
- In terms of scalability, experienced node runners always anticipate and plan cost increases as the project grows and matures.
- Profitability varies significantly, depending on node performance and the specific projects. In some cases, server costs must be covered out-of-pocket.
Running nodes regularly involves a steep learning curve and proper risk-management. While the experience is ultimately rewarding and educational, it may not be suitable for everyone. For those primarily seeking an investment opportunity, using a node operation service could be a wiser choice. However, for the more adventurous, running a node independently, with special attention to the aforementioned points, can be a fulfilling endeavor.
Advantages of using NaaS
Keeping in mind what we have learned so far about node performance, NaaS operation, and individual experiences, we can now highlight the advantages of this approach.
From our experiences, node operation and maintenance can be straightforward, but in the long run, they can be challenging to scale and monitor. While node operation is a lucrative passive income opportunity, subscribing to a service can simplify the process, creating a smooth investment system with a hands-off approach.
- Scalability: As the number of nodes increases, so do the hardware requirements. Provisioning higher hardware requirements is not an issue for a node operator company, thus accommodating a greater number of nodes.
- Accessibility: The availability of node operation services lowers the barrier to entry for earning rewards by running checker nodes. This enables everyone to benefit from supporting a unique project.
- Maintenance-Free: Users have zero maintenance burden. Service providers cover these grounds with a 24x7 monitoring and maintenance team.
- Enhanced Security: Node operation companies adhere to high security standards, including certifications and audits from around the world. This security is carried over to the node operation service offered.
- Performance Optimization: NaaS providers aim to maintain key performance metrics at the highest standard. They employ specialized software, hardware, and operational methods to achieve this.
- Cost Efficiency: Paying for servers and other overhead costs can outweigh the profits generated by node operation. A fixed subscription fee eliminates these unknown factors. More details on price vs. performance are provided in the next section.
In summary, Node-as-a-Service providers employ professional experts to manage nodes. By paying a flat fee, volatility is avoided by the users while ensuring the highest operational efficiency for Aethir. This is a three-way win for Aethir, checker node owners, and NaaS providers.
How NaaS Providers Optimize Performance vs Cost
Resource Allocation
NaaS providers optimize resources to balance performance and cost by carefully selecting and configuring their infrastructure based on requirement. For instance, for smaller operations, providers might utilize cloud services like AWS EC2 machines, which offer flexibility and scalability. This approach allows them to efficiently scale resources based on real-time needs, ensuring that performance is maintained without unnecessary expenditure or over-provisioning.
For larger operations, NaaS providers like Luganodes turn to bare metal servers from providers like OVH or Cherry Servers. These high-performance servers meet the rigorous hardware requirements essential for running numerous licenses on a single machine. By leveraging these robust infrastructures, NaaS providers can achieve significant cost savings by efficient resource allocation.
Economies of Scale
NaaS providers leverage economies of scale to reduce operational costs significantly. By aggregating the demand of multiple users, they can negotiate better rates for hardware, networking, and other essential services. This bulk purchasing power allows NaaS providers to offer more competitive pricing compared to individuals who attempt to run their own nodes.
For example, the cost of running nodes using OVH servers can be as low as $5 to $8 per month per license, depending on the configuration and the level of service required. These savings are passed on to the users, making it more cost-effective for them to use NaaS services rather than maintaining their own hardware.
Advanced Monitoring and Maintenance
NaaS providers employ advanced monitoring tools and technologies to maintain optimal performance at a reasonable cost. By using technologies such as Docker and Grafana, Site Reliability Engineers (SREs) are able to proactively manage and scale the infrastructure as needed, ensuring high uptime and reliable operations.
Through continuous monitoring and automated maintenance routines, NaaS providers can detect and address potential issues before they impact performance. This proactive approach minimizes downtime and enhances the overall user experience.
Choosing a NaaS Provider
With the aforementioned data on NaaS, it is clear that Node-as-a-Service makes checker node operation a promising business opportunity. However, it's important to note that not all NaaS providers are created equal. In a recent analysis, a detailed cost breakdown revealed that many current market offerings provide services at pricing brackets that may not be sustainable long-term. This observation suggests that some operators might either be absorbing costs or using hardware specifications that may not align with best practices.
Sustainable pricing is crucial for the long-term viability of NaaS providers, ensuring that costs remain stable for investors. Additionally, using recommended hardware specifications is important to maintain the integrity and performance of checker nodes. Aethir will soon implement a minimum hardware check to further ensure that all checker nodes meet the necessary standards.
When choosing a NaaS provider, consider the following factors:
- Reputation and Trust: Look for providers with extensive node-operation experience, industry recognition, and established partnerships.
- Reliability: High uptimes and enterprise-grade infrastructure are essential for constant monitoring and avoiding penalties.
- Security and Compliance: Ensure that the provider has security certifications and complies with international standards for fund safety.
- Customer Support: Effective and continuous support, whether through direct troubleshooting or community groups, is valuable.
- Value-added Services: Providers should offer dashboards and tools for investment tracking and performance monitoring.
Understanding these aspects is crucial for making a well-informed investment decision. For further reading, you can refer to Luganodes’ original research piece and cost breakdown.
TL;DR
- Node Performance: Critical factors include uptime, latency, and resource allocation.
- Issues with Individual Nodes: Running nodes independently can lead to penalties due to subpar hardware or maintenance. There's also a steep learning curve and potential out-of-pocket costs.
- NaaS Benefits: Scalable, cost-effective, maintenance-free, and secure node operation. NaaS providers handle setup, maintenance, and monitoring, offering tools for investment tracking and performance optimization.
- Performance vs. Cost: NaaS providers balance performance and cost through resource optimization, economies of scale, and advanced monitoring.
- Market Analysis: Some providers may offer unsustainable pricing; ensure your provider uses recommended hardware and has a sustainable pricing model.
- Choosing a Provider: Look for reputation, reliability, security, customer support, and value-added services.
- Conclusion: NaaS is an efficient, reliable way to manage nodes, balancing performance and cost effectively.
Conclusion
As a node operator and staking provider, Luganodes is excited about offering NaaS. Supporting Aethir’s unique vision for democratizing computing power truly resonates with our ethos. We see real change as possible with Aethir and the NaaS economy, which can create a crucial use case for blockchain technologies.
At Luganodes, we meticulously ensure that users get the most out of their investments. We prioritize transparency and keep users well-informed about their investment strategies. By doing so, we aim to maximize the benefits for all stakeholders involved.
Learn more about Luganodes’ NaaS:
