In a nod to the growing transition towards Proof-of-Stake blockchain consensus, decentralized database provider Bluzelle has introduced a new solution to bring blockchain staking nodes onto the cloud.
The Bluzelle communication module, in conjunction with Equinix’s SmartKey technology, will grant smaller node validators more practical access to the staking ecosystem via cloud hosting compatibility.
This move will open up new opportunities for validators to earn staking rewards traditionally dominated by more extensive operations with the ability to fund private server infrastructure.
Greater Security Advances Staking Democratization
One of the main reasons why staking nodes have traditionally run on private infrastructure is cloud hosting vulnerabilities. The design of these systems can potentially expose a staker’s private keys to the cloud network when engaged in computing activities, opening the door for hackers to compromise a node.
Any decline in a node’s performance can result in concurrent loss of reputation and slashing, which effectively translates to a loss of some or all the coins staked in a node. Bluzelle’s novel solution for overcoming this challenge involves adding a security layer via SmartKey, a hardware security module (HSM).
Per Bluzelle CEO and Co-Founder Pavel Bains:
"For security reasons, professional validators generally use private server infrastructure backed by HSMs that hold critical data like the private keys. This level of security is generally inaccessible to all but the largest and most well-funded validators."
The Bluzelle communication module facilitates seamless contact between the blockchain network and private keys via the Equinix SmartKey, ensuring that a node’s private keys remain guarded even while validating. Importantly, this integrated enterprise-grade hardware security module’s greater availability encourages more small staking nodes to participate, helping improve overall blockchain security.
Approachable Infrastructure Requirements Lower Participation Barriers
Cloud services are in-demand due to their high uptime, performance, scalability and cost, each of which is critical when hosting a blockchain node. Bluzelle’s workaround means that assembling private network infrastructure is no longer needed to run a secure and highly performant validator node. Moreover, it means stakers can work with providers, including Google Cloud and Amazon Web Services.
Effectively, this new staking security methodology and democratizes validator access by decreasing the costs of running a node while delivering the best available uptime and speed. While Cosmos is currently the only cryptocurrency supported by Bluzelle’s solution, the organization plans to expand compatibility to other blockchains in the future, including Ethereum.
Anthony Ho, Product Management Director for Equinix Asia-Pacific, concludes:
"We are excited that blockchain validators will discover all the benefits of our key management solution thanks to the collaboration with Bluzelle."