Graphite entry-point nodes: Pathways to passive income

Never before has a blockchain network offered entry-point node operators the opportunity to earn directly from the blockchain. This is a groundbreaking feature as it allows virtually any network participant to earn a passive income off of the blockchain’s operations without having to dedicate a large amount of computing power, opening the door for integrators and smaller projects to get rewarded for their contributions. This is one of the features that makes Graphite unique and is key to its vision of a more egalitarian and refined blockchain ecosystem. In this article, we are going to break down the different kinds of nodes on Graphite, how entry-point nodes work, why they are important and how they fit into the Graphite vision.

The different kinds of nodes on graphite

Blockchains rely on a variety of different entities to maintain their operations and confirm transactions. In this context, a node is an entity that contributes its computing power to the blockchain by allocating memory, verifying transactions and storing copies of the blockchain. While some of their duties may overlap, depending on a given blockchain’s modus operandi, nodes are separate from validators, miners and stakers.

There are also different kinds of nodes that each perform different functions, although they can also overlap. For example, on Graphite, there are three kinds of nodes: entry-point (transport), authorized and Graphite Foundation nodes. Each kind of node has a different role in the network’s operations, but, for example, Foundation nodes can also act as authorized nodes and authorized nodes can also act as entry-point nodes.

Authorized nodes operate as block validators and are essential for the network to be able to function. These nodes also receive rewards for the work that they perform, which is often the case on other networks that employ nodes as well. However, a significant amount of computing power is necessary to become an authorized node operator. In order to become an authorized node on Graphite, potential operators have to pass a technical compliance test as well as the highest level of KYC.

Another type of node role on the network is that occupied by the Graphite Foundation nodes. Graphite Foundation nodes are authorized nodes that ensure that the network is always up and running, regardless of other node functionality. These nodes can be considered the network’s safety net. There are only fifteen of them and they are maintained exclusively by the Graphite Foundation.

Entry-point nodes

The last kind of node is the entry-point node, whose ability to earn directly from the network is what sets Graphite apart from any other network currently on the market. An entry-point node is a node that helps out in transaction processing. Entry-point nodes on Graphite act as initial points of transaction for the network.

The way that the income for entry-point nodes has been achieved is by adding a field for the incoming node address to the transaction record. Users fill in this field with the address of the originating node, and then the transaction fee will be the standard rate. This node then transports the transaction to an authorized node that acts as a sealer, verifying the transaction.

In this paradigm, both the entry-point and the authorized nodes receive a commission on transactions, splitting the transaction fee 50/50. Because the entry-point node acts as a transport, initiating the transaction, the resources required to act in this role are not exorbitant. Network participants looking to become an entry-point node and earn off of their support of the network do not need the hardware or computing capacity that is normally necessary to earn as a node on other networks. This significantly lowers the threshold for earning directly from a blockchain, making Graphite truly a one-of-a-kind network. The idea behind this functionality is in line with the original philosophy that spurred the inception of cryptocurrency and decentralized finance, namely that this technology should serve as a means of enhancing inclusion for all, and profits and control should no longer be siloed or belong to the few.

Entry-point nodes and the Graphite vision

Because the use of entry-point nodes requires specific node addresses to be included with transactions, their deployment naturally leads to a reduction in anonymity. Observers of the network will be able to see that a number of transactions are being sent to specific addresses and identify these addresses as nodes. However, for the vast majority of users, this is something that will not concern them. Rather, they will prefer to avail themselves of the most convenient means of making transactions, which, in this case, is using an efficient entry-point node to see their transaction through.

However, Graphite is committed to giving users as much control as possible in their financial operations. Privacy and anonymity are not taken lightly at the network but are considered inherent rights of individuals and part of the promise of blockchain technology. Users who wish to preserve their anonymity on Graphite transactions will still be able to do so.

This can be done by using an anonymous transport node instead of using one of the entry-point nodes when making a transaction. In this case, if a user wants to remain anonymous, the field for the entry-point node is left blank on the transaction, and the reward for the transaction will only go to the authorized node.

While this functionality is important, Graphite was built as a reputation-based blockchain, where users are encouraged to engage in KYC measures.

In summation, entry-point nodes on Graphite constitute a breakthrough in the cryptocurrency industry, wherein any network participant will be able to make a passive income directly from the network. Graphite was built to incentivize enterprises of all sizes, developers and integrators to participate in network maintenance and earn directly from their efforts. This paradigm is the closest thing yet to achieving the vision of decentralized finance, where cryptocurrency is not just a store of value and monetization has to be pursued via outside mechanics but the network itself is an inclusive, community-based economy where everyone has an equal opportunity to earn and users have control over their privacy and financial operations.