Hello everyone, I am Conan. In this video, let’s talk about how to choose a Staking node service provider.

First of all, let’s talk about how to choose a node service provider

Chorus.one conducted a survey. When choosing a node service provider, the handling fee is the most important factor that everyone considers, followed by security facilities, availability of development tools, transparent data and community contribution. Relatively speaking, the size of the team, which protocol to use, the country in which it is located, and the number of tokens self-staked are not the main considerations.

For node service providers, the threshold for becoming a node is low, and they can obtain inflation benefits and commission fees. Therefore, at present, third-party service providers are vying for the throne, and the competition is intensifying. In February 2019, blockchain heavyweight investment institutions Pantera Capital and Coinbase Venture completed a $4.5 million investment in Staked.us, a startup that provides services for PoS consensus projects. Staked.us is just one example of the acceleration of the layout of the new track. Other similar overseas institutions include Stake Capital, P2P Validator, Cryptium Labs, Figment, Stake With.Us, etc. Domestic related service organizations have also sprung up like mushrooms, such as Cobo, Wetez, HashQuark, and KuCoin, all of which earn income by serving as project nodes or node service providers.

According to the comprehensive list of global staking service providers listed on the Staking Rewards website, My Cointainer, an Estonian staking service provider that supports 18 tokens, tops the list, and Grin Platform, which ranks second overall, supports up to 130 tokens.

Delegating to a node operator does not mean a guaranteed profit. Especially when the node operator lacks experience or integrity record, the risk of coin holder exposure is particularly high. There are already some third-party data research institutions that provide independent monitoring tools to monitor the operating status of nodes, but the industry is still immature. For example, baking-bad.org provides third-party operation monitoring services for Tezos node operators

In this case, there are several simple criteria as a reference for selecting a node operator: historical staking return rate, community contribution, reputation, security architecture disclosed on the official website, and anti-attack solutions. Some project parties will also post the operation status of node operators on their official websites

In the POS network, node service providers occupy an important position, and at the same time, they are responsible for the development, growth and health of the network. They can contribute to the system and receive rewards while providing services for token holders. for example:

1. Actively participate in governance;

2. Develop tools for the community;

3. Develop DApps;

4. Support other verification nodes that are smaller or contribute to the network.

But in fact, there are still more problems to be solved in this field, such as the opportunity cost and liquidity risk brought by the lock-up period to users, and how to lower the threshold and provide users with a good interface. Service providers offer different solutions.

Hope this knowledge can help you to have a better understanding when making judgments.

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