The Shift in Crypto Mining Focus
Decentralization remains a hot topic within the cryptocurrency community, particularly concerning the Bitcoin network. The prevailing belief is that Bitcoin miners should operate across multiple jurisdictions to mitigate the risk of regulatory capture. The ban on cryptocurrency mining in China in 2021 was seen by some as a blessing in disguise, as it prompted miners to disperse from the heavily concentrated operations in the country to various locations worldwide.
However, discussions surrounding decentralization in Proof-of-Stake (PoS) networks like Ethereum and Solana are not as widespread. Enter SenseiNode, a staking firm that is committed to enhancing the resilience of PoS blockchains by establishing validator infrastructure throughout Latin America.
A New Era of Geographic Decentralization
“When we started, 99% of nodes were located in Europe, the US, and some in Asia,” stated SenseiNode CEO Pablo Larguia in a recent interview. “We were the first to bring geographic and jurisdictional decentralization to Latin America.” This pioneering effort has positioned SenseiNode as the 15th largest staking firm globally, with approximately $800 million in assets staked through its platform, although it still trails behind industry giant Kiln, which manages over $7 billion.
Local Operations Across Latin America
SenseiNode operates across several key Latin American countries, including Brazil, Argentina, Mexico, Chile, Costa Rica, and Colombia. Additionally, the firm has nodes established in the United States and Germany, but what sets them apart is their reliance on local and regional data centers for operations.
Larguia pointed out, “Most of the nodes in the US and Europe are hosted in Amazon Web Services. At the end of the day, that’s a point of centralization.” By utilizing regional resources, SenseiNode is enhancing the decentralization of the staking process in Latin America.
Building Infrastructure and Educating the Market
One of the challenges faced by SenseiNode is that data centers in Latin America often lack the advanced technology found in their Western counterparts. This gap has led the firm to adopt an educational role, assisting in the development of the necessary infrastructure to effectively operate staking services.
Understanding Node Requirements
The requirements for running nodes can vary significantly depending on the blockchain protocol. For instance, some projects may impose larger storage needs due to an extensive blockchain history. The costs associated with running nodes also fluctuate; an Ethereum validator can be maintained for about $300 per month, while a Solana validator costs around $800 per month. Notably, there are no restrictions on the number of tokens that can be delegated to a single Solana validator, contrasting with Ethereum validators, which are capped at 32 ETH each. Consequently, Ethereum staking imposes a higher operational cost for SenseiNode compared to Solana.
Diverse Node Portfolio
Larguia elaborated on the scale of operations, saying, “For Polkadot and Avalanche, we have like two or three nodes, but for Ethereum, we have like 9,000.” This extensive network underscores SenseiNode’s commitment to bolstering the Proof-of-Stake ecosystem in Latin America while promoting decentralization and educating the market about the benefits of staking.
In conclusion, SenseiNode is not just a staking firm; it is a trailblazer in the pursuit of decentralization, infrastructure development, and education in Latin America’s burgeoning Proof-of-Stake landscape.
