Scale or Die Accelerate 2025: Node Consensus Networks with Jito Restaking

Jito Labs is revolutionizing the Solana ecosystem with its innovative restaking protocol, enabling the creation of Node Consensus Networks (NCNs) that leverage Solana's runtime for arbitrary proof-of-stake systems. This groundbreaking approach is set to enhance decentralization, increase trust, and create new economic opportunities within the Solana blockchain.

Summary

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Evan Batsell, a protocol engineer at Jito Labs, presented at the Scale or Die Accelerate 2025 conference, introducing the concept of Node Consensus Networks (NCNs) built on Jito restaking. NCNs represent a significant evolution in blockchain technology, allowing arbitrary proof-of-stake protocols to utilize Solana's runtime as their consensus layer.

Jito restaking serves as a bridge between stake assets, node operators, and decentralized networks. This protocol aims to increase the network effect of valuable state on Solana by encouraging new proof-of-stake networks to use Solana for consensus. With over $300 million in Total Value Locked (TVL) and more than 20 high-quality node operators, Jito restaking is already making waves in the blockchain space.

The presentation covered the benefits of building an NCN, including increased user trust, potential cost savings, regulatory compliance, and the ability to incentivize network participants. Batsell also provided a step-by-step guide on how to build a simple NCN, using a weather oracle for Solana Beach as an example.

Key Points:

What is a Node Consensus Network (NCN)?

A Node Consensus Network is an arbitrary proof-of-stake protocol that operates within the Solana runtime. NCNs extend the concept of using Solana's runtime for consensus, similar to how Solana uses its vote and stake programs. This approach allows developers to create decentralized networks that leverage Solana's infrastructure while implementing their own specific consensus mechanisms.

NCNs built on Jito restaking benefit from a pre-existing pool of capital seeking yield and an ecosystem of professional node operators looking to earn revenue by running software. This setup eliminates the need for new networks to bootstrap their infrastructure from scratch, significantly reducing the barriers to entry for creating decentralized protocols.

Benefits of Building an NCN

There are several compelling reasons to build a Node Consensus Network:

1. Increased trust: By decentralizing previously centralized components of a protocol, users can have greater confidence in the system's integrity and resilience.

2. Cost-efficiency: Decentralized protocols can potentially be more cost-effective to run, as they allow the market to determine the most efficient way to operate the infrastructure.

3. Regulatory compliance: Some regulatory frameworks may require protocols to demonstrate a certain level of decentralization, which NCNs can help achieve.

4. Economic incentives: NCNs provide a way to give network participants "skin in the game" through economic stakes, enhancing the overall trustworthiness of the system.

5. Revenue generation: The ability to incentivize participants with real yield is crucial for the sustainability and growth of any decentralized network.

Building a Simple NCN

Batsell walked through the process of building a basic NCN using a weather oracle for Solana Beach as an example. The key components of this system include:

1. Off-chain software: A server that fetches weather data and submits it to the NCN program on-chain.

2. Snapshots: An on-chain process that sets voting weights for operators based on their staked assets.

3. Consensus mechanism: In this example, a simple on-chain quorum where votes are tallied to reach a two-thirds stake weight agreement.

4. Reward distribution: A system for allocating rewards to operators, vaults, and potentially other parties based on correct participation in the network.

This basic template serves as a starting point for more complex NCNs, with each component customizable to suit specific use cases and requirements.

Real-World Example: Jito Tip Router

Jito Labs has already implemented a real-world NCN in the form of the Jito Tip Router. This system is responsible for distributing MEV rewards to validators and stakers on the Solana network, handling over a billion dollars in distributions to date. The Tip Router demonstrates how an NCN can evolve over time, with plans to extend its functionality to handle priority fee distributions as well.

Facts + Figures

• Jito restaking has over $300 million in stake assets and Total Value Locked (TVL)
• The protocol delegates stake to more than 20 high-quality node operators
• Jito Tip Router has distributed over a billion dollars in MEV rewards historically
• The Tip Router NCN handles distributions to millions of accounts on the Solana network
• Jito restaking connects stake assets and node operators with decentralized networks
• The protocol aims to increase the network effect of valuable state on Solana
• NCNs can be customized with different consensus mechanisms, including simple quorums, BLS signature aggregation, and ZK proofs
• The example weather oracle NCN operates on an epoch-based cycle
• Jito provides a live code template and tutorial for building simple NCNs

Top quotes

1. "Solana is unique in that it uses the runtime for consensus, at least until out and glow is released."
2. "A node consensus network, you can think of it as an arbitrary proof of stake protocol in the Solana runtime."
3. "What we really want to do is we want new arbitrary proof of stake networks to be using Solana as their consensus layer, which then increases the network effect of valuable state on Solana, on the monolith."
4. "We provide is this pool of capital that's looking for yield and an ecosystem of professional node operators that are looking to earn money running software."
5. "You have to be able to incentivize participants to do work. I mean, this is Solana after all. We do care about revenue and think that's a good thing to do."

Questions Answered

What is Jito restaking?

Jito restaking is a Solana protocol that connects stake assets and node operators with decentralized networks. It provides a pool of capital seeking yield and an ecosystem of professional node operators, enabling the creation of Node Consensus Networks (NCNs) on Solana. This protocol allows arbitrary proof-of-stake networks to use Solana as their consensus layer, increasing the network effect of valuable state on the Solana blockchain.

How does a Node Consensus Network (NCN) work?

A Node Consensus Network operates as an arbitrary proof-of-stake protocol within the Solana runtime. It typically consists of off-chain software that submits data to an on-chain program, a snapshot mechanism for setting voting weights, a consensus mechanism for reaching agreement on submitted data, and a reward distribution system. NCNs leverage Solana's infrastructure while implementing their own specific consensus and incentive mechanisms.

What are the benefits of building an NCN?

Building an NCN offers several advantages, including increased trust from users through decentralization, potential cost savings by leveraging market efficiencies, regulatory compliance by demonstrating decentralization, and the ability to incentivize network participants with economic stakes. NCNs also provide a way to generate revenue and create real yield for participants, which is crucial for the sustainability and growth of decentralized networks.

Can you give an example of a real-world NCN?

A prime example of a real-world NCN is the Jito Tip Router. This system is responsible for distributing MEV rewards to validators and stakers on the Solana network. It has handled over a billion dollars in distributions to millions of accounts historically. The Tip Router demonstrates how an NCN can evolve over time, with plans to extend its functionality to handle priority fee distributions in addition to MEV rewards.

How much value is currently locked in Jito restaking?

Jito restaking currently has over $300 million in stake assets and Total Value Locked (TVL). This substantial amount of capital is delegated to more than 20 high-quality node operators, showcasing the significant adoption and trust in the Jito restaking protocol within the Solana ecosystem.

How can developers start building their own NCN?

Developers can start building their own NCN using the live code template and tutorial provided by Jito. The process involves creating off-chain software to submit data, implementing on-chain snapshot and consensus mechanisms, and designing a reward distribution system. Jito's template offers a basic structure that developers can customize and expand upon to suit their specific use cases and requirements.

What future developments are planned for Jito restaking and NCNs?

Jito Labs plans to extend the capabilities of their restaking protocol and NCN framework. Future developments include adding plug-and-play modules for different consensus mechanisms, reward distribution methods, and price feed integrations. They also aim to incorporate features like Token-2022 support and slashing mechanisms to enhance the protocol's functionality and flexibility.