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There are many aspects to validator performance on Solana, and different metrics are important to different people. For users of the Solana network, throughput (transactions per second) and latency (how quickly a transaction lands) are key metrics. In this article we’ll dive into two factors that affect those: skip rate and block size. We’ll explain how Chorus One is able to outperform both network average and the superminority on these metrics. If all validators performed as well as Chorus One on these metrics, Solana would be able to process 11.4% more transactions per second.
As a Solana user, when you submit a transaction, you want it to be included in the chain as quickly as possible, as cheaply as possible. When the chain can process only a limited amount of transactions per second, that means that only users who are willing to pay high priority fees can get their transaction included. When the chain can process more transactions per second, transaction processing capacity becomes less scarce, and transaction fees go down. Solana’s throughput is determined by the validators that make up the network, so for good network performance, it is important to delegate to a validator that performs well.
For this article we look at the month of July 2024. All metrics are reported over the period from midnight July 1st until midnight August 1st in the UTC time zone. (Slot 274965076 until 280826904, for those who want to reproduce our findings.)
In this article we contrast Chorus One against two groups of validators: the entire network (including Chorus One), and the superminority. The superminority is the smallest set of validators that together control more than one third of the stake. We use the superminority from epoch 650, the final epoch in July. It consists of the top 19 validators by stake.
In the Solana network, validators periodically have a duty to produce blocks. Before the start of the epoch, the protocol sets the leader schedule, which determines when every validator has to produce a block. Validators with more stake get assigned more blocks to produce.
If all goes well, when a validator’s turn comes to be the leader, the validator produces a block. The chain grows by one block, and users’ transactions get included. When things don’t go well, the leader fails to produce a block, or the block may not be accepted by the other validators. When the leader fails to extend the chain, this is called a skip, and the fraction of blocks skipped out of blocks assigned in some period of time is called the skip rate. Skips are bad for users of the network, because during a skip, no transactions get processed. Skips lower the throughput of the chain, and delay when transactions get processed. A lower skip rate is therefore better.
A validator can skip for multiple reasons. Of course a validator that is offline will be unable to produce a block, but even when it is online and produces a block, that can still result in a skip. For example, the validator could have been slightly late, and the network has already moved on, assuming the validator skipped its duty. Many of the factors that affect skip rate are directly or indirectly under the validator’s control, but some amount of skipping is inevitable in a decentralized network. During times of high activity, skip rate is generally higher network-wide than during quiet periods. Therefore, the skip rate is not meaningful in isolation, but comparing skip rate between validators is one way to judge their performance.
Over July 2024, Chorus One achieved a skip rate of 2.03%, while the network-wide skip rate was 5.19%. This means that average Solana validators fail to produce their blocks more than 2.5 times as often as Chorus One.
Maybe network average is not a fair comparison though? It may be the case that a few bad validators are pulling up the average. So let’s look at the superminority, the top validators by stake. This relatively small set of validators has the responsibility to produce one third of the blocks, so its influence on the chain’s throughput is large. Over July 2024, the superminority together achieved a skip rate of 5.68%, which is even worse than network average. Superminority validators fail to produce their blocks almost 3× as often as Chorus One.
The Solana network is effectively leaving 3.3% of its blocks on the table by keeping stake delegated to validators with high skip rates.
Aside from skip rate, a major factor for throughput is the number of transactions that every block contains. When blocks can fit more transactions, the throughput of the chain goes up. When validators are able to build larger blocks, fewer user transactions have to be postponed to the next block, so latency goes down. Furthermore, more capacity means lower transaction costs.
Over July 2024, blocks produced by Chorus One contained on average 1696.2 transactions. (This includes vote transactions that contribute to Solana’s consensus mechanism.) The network-wide average over this period was a mere 1573.3 per block. This means that Chorus One includes 7.8% more transactions per block than average validators.
Again, let’s compare this to the validators with the greatest responsibility and disproportionate impact on chain-wide throughput: the superminority. Here we see that with 1640.6 transactions per block, the superminority does outperform the network average, but nonetheless Chorus One outperforms the superminority by 3.4%.
This means that the Solana network is effectively leaving a 7.8% throughput boost on the table, by keeping stake delegated to low-performing validators. This number is only for produced blocks, we don’t count skips as zero transactions per block. This means that the 7.8% boost would come on top of the 3.3% skip rate boost. Combined, this means that Chorus One achieves 11.4% more transactions per second than average validators.
Why is Chorus One able to process 11.4% more transactions per second than other validators? As is often the case with performance optimization, there is no single trick, but if you stack enough small optimizations, the combined result can be substantial. A few of the techniques we use:
In this article we highlighted two key Solana performance metrics that matter for users of the network: skip rate and block size. Lower skip rates and larger block sizes mean that users can get their transactions included faster and for a lower fee. These two metrics contribute to how many transactions per second Solana can process. Through multiple optimizations and operational practices, Chorus One achieves 11.4% more transactions per second than the network average. If all delegators would delegate to validators who perform as well as Chorus One, Solana would be able to process 11.4% more transactions per second.
About Chorus One
Chorus One is a leading institutional staking provider, securing over $3 billion in assets across 60+ Proof-of-Stake networks. Since 2018, Chorus One has been a trusted partner for institutions, offering enterprise-grade solutions, industry-leading research, and investments in cutting-edge protocols.
The upcoming launch of Babylon’s Bitcoin Staking Mainnet marks a significant milestone in the cryptocurrency landscape and in the evolution of Bitcoin. Babylon is redefining the utility of Bitcoin by integrating it with Proof-of-Stake (PoS) systems, offering new opportunities for Bitcoin holders. Here’s what you need to know about this launch:
1. What is Babylon Bitcoin Staking?
Babylon’s Bitcoin Staking allows Bitcoin holders to participate in the security of PoS blockchains without transferring their assets to a third party. Traditionally, Bitcoin has been seen as a store of value, but Babylon expands its utility by enabling Bitcoin to play an active role in securing various PoS ecosystems. This is achieved through a trust-minimized protocol that connects Bitcoin holders with the demand for network security across multiple blockchain systems, including PoS chains. Read our comprehensive overview of Babylon here.
2. What is Babylon’s Mainnet Launch?
The mainnet launch of Babylon represents the transition from a developmental stage to a fully operational network. This is when the protocol becomes available for public use, allowing Bitcoin holders to start staking their assets on a live blockchain. The launch is designed to be phased, ensuring that each component of the network is thoroughly tested and integrated before moving to the next stage. This approach provides a structured rollout, allowing users to gradually engage with the staking process.
3. What Are the Three Phases of the Launch?
Babylon’s mainnet launch is divided into three distinct phases, each with specific goals and functionalities:
4. What Can You Do in the Babylon Mainnet Launch?
During the Babylon mainnet launch, Bitcoin holders can actively participate in securing PoS blockchains by locking and staking their Bitcoin. In Phase 1, you can initiate staking by locking your Bitcoin in a secure, self-custodial vault on the Bitcoin blockchain. As the launch progresses into Phase 2, your locked Bitcoin will begin to contribute to the consensus process of the Babylon PoS chain. By Phase 3, you’ll have the ability to stake your Bitcoin across multiple PoS chains, maximizing your potential rewards and playing a crucial role in the security of these networks.
5. How Can You Stake Your Bitcoin?
Staking your Bitcoin with Babylon is a multi-step process that begins in Phase 1:
6. What Rewards Can You Get?
In Phase 1, there are no direct staking rewards because the PoS chain is not yet active. Instead, Babylon introduces a point system to track staking activity. These points, though they do not have direct monetary value, could potentially be used for future benefits within the Babylon ecosystem. As the network progresses into Phase 2 and beyond, your Bitcoin will earn rewards based on its contribution to the security of the PoS systems, allowing you to gain value from your staked assets.
7. Which Wallets Can You Use?
To stake your Bitcoin with Babylon, you’ll need a compatible Bitcoin wallet. The official Babylon staking web application (btcstaking.babylonlabs.io) provides a list of verified finality providers and supports most Bitcoin wallets. You can also use third-party services such as staking websites, custody solutions, or command-line interface (CLI) tools if you are more technically inclined. It’s important to choose a wallet that meets your security needs and is compatible with the staking process. Here’s a list of supported wallets:
8. What Are the Transaction Details in Phase 1?
During Phase 1, all transactions are conducted on the Bitcoin blockchain. These include:
Notably, there is no PoS slashing in Phase 1, meaning your staked Bitcoin is not at risk of being slashed for any consensus violations.
9. What Are the Limits and Caps in Phase 1?
To ensure security and broad participation, Phase 1 introduces several limits:
These caps and limits are designed to foster a secure and inclusive staking environment.
10. Eligibility and Security Considerations
Before participating in the Babylon mainnet launch, it’s crucial to ensure you meet the eligibility criteria. Staking is prohibited for residents of certain countries, including the United States, Canada, Australia, and Mainland China, due to regulatory restrictions. Additionally, Babylon has implemented robust security features, such as the covenant committee, a multi-signature verification scheme that ensures the safety and correctness of unbonding transactions.
The Babylon Bitcoin Staking Mainnet launch represents a significant evolution in how Bitcoin can be used within the broader blockchain ecosystem. By participating in this launch, you can contribute to the security of PoS systems, earn rewards, and engage with one of the most innovative protocols in the cryptocurrency space. As the launch progresses, staying informed and involved will be key to maximizing your experience with Babylon.
And that's everything you need to know to be prepared for the mainnet launch. Stay tuned and follow us on Twitter/X to stay ahead of the curve.
Ready to start? Stake your first BTC with Babylon and Chorus One today!
About Chorus One
Chorus One is one of the biggest institutional staking providers globally, operating infrastructure for 60+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.
We’re excited to announce the launch of our latest product, the Obol DV Vault, through which stakers can participate in the Obol Collective’s new Contributions Program. By staking on distributed validators using the Chorus One DV vault, stakers meaningfully take part in the Obol Collective’s mission—to scale Ethereum by securing and decentralizing the consensus layer. With Obol DVs contributing 1% of daily staking rewards to the Obol retroactive funding program focused on scaling Ethereum infrastructure, stakers’ contributions will be tracked and serve as a basis for future governance and ownership of the Obol Collective.
The Obol DV Vault joins our MEV Max Vault as Chorus One's suite of ETH validation options. Both vaults are built on the Stakewise V3 and support staking without any minimum ETH requirements and the optional minting of osETH.
🌟 Our customers have have the flexibility to choose between our MEV-Max Vault and the new Obol Vault. You can stake to this vault directly via Stakewise or effortlessly through our ETH staking dApp, OPUS Pool, which also enables restaking with EigenLayer or Symbiotic.
The Collective is fueled by Obol’s economic model, which directs 1% of staking rewards from DVs to ecosystem projects via retroactive funding - a positive flywheel to accelerate adoption of DVs and scale the consensus layer.
To accelerate the adoption of DVs and grow participation in the Obol Collective, those staking on distributed validators and thus making contributions to the Obol RAF will be tracked and recognized.
The aim is to encourage continuous participation and sustained support in the health and growth of Ethereum consensus. The Obol Contributions program is thus built to be fair and transparent, without arbitrary gimmicks that promote short-term interest at the cost of long-term participation.
Contributions are tracked in an off-chain centralized database, and will serve as the basis for future community ownership of the Obol Collective.
Learn more about the Contribution program at Obol.org/contributions.
Learn more about Obol Collective’s Obol retroactive funding program here.
The Obol Vault is relevant for:
The Obol Vault benefits ETH stakers by:
Users can join the Obol Contribution Program by staking ETH through our Obol DV Vault on OPUS Pool, where they can also easily track their contributions.
Chorus One validators automatically make contributions based on the rewards in gwei that are received in a day, with 1% of these going to the Obol Collective’s retroactive funding program. Each address that is present in a reward splitter will be recognized for their contributions based on the percentage of the rewards received for each DV cluster. The lowest level at which contributions are made is at the validator level which can be aggregated into addresses, clusters, operators, and protocol if relevant. For more information, visit Obol’s docs.
Chorus One is proud to be at the forefront of enhancing Ethereum’s security and decentralisation through our partnership with the Obol Collective. The launch of the Obol Vault represents a significant milestone in our mission to support the Ethereum ecosystem and we invite all ETH stakers, institutional investors, and ecosystem contributors to join us in this exciting initiative. Together, we can build a more secure, resilient, and decentralized Ethereum for the future. Let’s make Ethereum stronger, together.
For more information on how to get started with the Obol Vault, please reach out to us at https://chorusone.my.salesforce-sites.com/WebToLead or email at staking@chorus.one, or visit obol.org/contributions.
About Chorus One
Chorus One is one of the biggest institutional staking providers globally, operating infrastructure for 60+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.
Consensus mechanisms are the linchpins of securing blockchain networks and enabling their functionalities. While Proof of Stake (PoS) has been a stalwart method, ensuring robust security and operational efficiency, it is not without its limitations. Berachain, an Ethereum Virtual Machine (EVM) compatible Layer 1 blockchain, introduces a unique alternative: Proof of Liquidity (PoL).
This article delves into the innovative mechanisms of Berachain, exploring its genesis, unique tri-token model, and the technical prowess that Chorus One brings to optimizing this approach, with ‘BeraBoost’.
Berachain's Proof-of-Liquidity (PoL) consensus mechanism addresses several limitations inherent in Proof-of-Stake (PoS) systems. In PoS, validators and users lock up a substantial amount of native tokens to secure the network. This staked capital, while ensuring network security, remains idle and does not contribute to the liquidity of the ecosystem. Consequently, these tokens cannot be used for DeFi applications, trading, or other on-chain activities. Although PoS is a resilient method for achieving consensus and securing blockchain networks, aiming for a high percentage of staked tokens can counteract liquidity needs within the ecosystem.
Liquid staking was developed to mitigate these concerns by creating liquidity for staked tokens, and it has proven successful in many ecosystems. However, Berachain's PoL model aims to surpass liquid staking. PoL can be simplistically described as "security by liquidity," meaning the only way to secure the chain is by providing liquidity. Given Berachain's primary focus on DeFi, this model is particularly relevant. But how does PoL actually function on Berachain?
Berachain's innovative journey began with the "Bong Bears" NFT project—a whimsical collection that captivated the DeFi community. Through this creative endeavor, the founders recognized a crucial gap: the need to harmonize liquidity provision with network security. This insight led to the birth of Berachain, designed to leverage liquidity as the cornerstone of its security model. With substantial backing from prominent investors such as Framework Ventures, Brevan Howard, Polychain Capital, and Samsung Next, Berachain is well-positioned to redefine blockchain consensus.
At the heart of Berachain's ecosystem lies its tri-token model, consisting of BERA, BGT, and HONEY. Each token serves distinct purposes, ensuring that the network can achieve its objectives of security, governance, and efficient transaction processing while maintaining a stable economic environment for decentralized finance (DeFi) activities:
$BERA (Liquid Token)
$BGT (Governance and Staking Token)
$HONEY (Stablecoin)
Let’s take a deeper look at their individual roles:
Under the hood, PoL requires validators to direct incentives to on-chain pools of capital called "reward vaults”. We are committed to approaching this process scientifically, through an algorithm we’ve named “BeraBoost” - it will be open source software, and run on a public dashboard. Beraboost will distribute incentives such that delegators to Chorus One earn maximum rewards, by tracking their LP positions and directing incentives to the relevant pools.
Berachain is currently on testnet and staking is not enabled. We are closely involved with the Berachain team and will support all institutional and individual use-cases for supporting BGT. If you're interested in knowing more, fill out this form.
OR
Email us - staking@chorus.one
About Chorus One
Chorus One is one of the biggest institutional staking providers globally, operating infrastructure for 60+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.
