Gnosis Chain Dedicated Node

Among all cryptocurrencies, the Gnosis Chain (formerly xDai) network occupies a special place. First of all, it is a sidechain for the Ethereum network. Secondly, it is a stablecoin, the value of which is pegged to USD, and ETH cryptocurrency serves as collateral. Validators of the Gnosis Chain network are rewarded in xDai tokens. The Gnosis Chain network uses a type of Delegated Proof-of-Stake (DpoS) algorithm called POSDAO to validate transactions. Its essence is that the Gnosis Chain algorithm randomly selects users who have frozen xDai tokens in their wallets.

Securing an xDai token with the Ethereum cryptocurrency is done using a technology called blockchain bridge. It is a blockchain smart contract that blocks the DAI cryptocurrency, in exchange giving out the same amount of xDai coins. These coins can be stored in an Ethereum wallet (Ethereum client). The Gnosis Chain blockchain is compatible with the Ethereum Virtual Machine (EVM). Custom tokens can also be created on the Gnosis Chain blockchain. Simply put, the Gnosis Chain blockchain is the Etherium analogue of the Level 2 Lighting network used by the Bitcoin blockchain. However, in addition to fast and cheap transactions between nodes in the Gnosis Chain network, the Gnosis Chain blockchain provides more advanced functionality than the Lightning network.

This blockchain provides more than just fast and low-cost transactions on the Ethereum network. Through the use of the OmniBridge, it is possible to connect the Ethereum blockchain with the BNB Chain blockchain and the Polygon blockchain. The list of supported blockchains is expected to be expanded in the near future. The developers also have Gnosis Chain JSON-RPC access. It provides fast request processing, load balancing between Gnosis Chain nodes, Ethereum blockchain, and Ethereum transaction traces. Since Gnosis Chain JSON-RPC accesses include archive data, it eliminates the need to maintain Gnosis Chain archive blockchain nodes or its history blockchain nodes.

In addition to xDai tokens, the Gnosis Chain network uses GNO (formerly STAKE) tokens. Unlike xDai, GNO prices are floating and determined by the balance of supply and demand. GNO tokens find use in voting for the future direction of the project, and they are also used to secure the Gnosis Chain blockchain by means of stacking. Interestingly, GNO tokens are also used to secure other blockchains - namely, user coin blockchains.

Among Gnosis Chain cryptocurrency nodes, there are both Gnosis Chain validator nodes and regular Gnosis Chain nodes. Developers use GNO dedicated nodes. To become one of the Gnosis Chain validator nodes, you need to install the GNO node software and block at least 20,000 STAKE tokens in a dedicated wallet. Rewards for validator nodes are accrued in both xDai tokens and GNO tokens. Supporting the operation of regular Gnosis Chain nodes is not rewarded with material incentives.

GNO dedicated nodes are necessary for developers who create various dApps. Among them web3 applications, blockchain smart contracts, and more. Deploying a GNO dedicated node is extremely difficult even for an experienced user. A good alternative that saves the developer time and effort would be to create a Gnosis Chain dedicated node as a service. This will save a lot of hassle associated with setting up the hardware and software part of GNO dedicated node. Since working on the Gnosis Chain network involves the risk of losing money, developers first test the operation of dApps and blockchain smart contracts in GNO testnet. This GNO testnet works similarly to GNO mainnet, except that the coins in GNO testnet have no value.