What are Node Consensus Networks (NCNs)?

Node Consensus Networks (NCNs) represent a foundational architecture within blockchain technology, utilising distributed processes to specifically validate and confirm information. These networks operate through collections of independent nodes collaborating to scrutinise actions, transactions, and various data types. Essentially, any system aiming to establish a decentralised network bolstered by community validation can be classified as an NCN – This even includes the Switchboard Protocol, which is intrinsically an oracle network that seamlessly connects decentralised applications to real-world data.

A significant catalyst for the rise of NCNs is their ability to address the “cold start problem,” a common hurdle for new decentralised projects. This problem encompasses the difficulties in bootstrapping network security and validation mechanisms from scratch. Traditionally, new networks have had to develop bespoke validation solutions which require substantial resources, time, and robust economic backing to establish a dependable validator network.

Think of NCNs as modular 'building blocks' constructed for trust. NCNs can perform specific roles to confirm the accuracy of price feeds from oracles or even securing cross-chain communications. By specialising and focusing, this ensures higher levels of reliability for any protocol that uses a NCN.

Jito NCN’s and the Switchboard Protocol

Security is critical for oracle networks due to the high value of the applications that depend on their data. Switchboard is enhancing its security by integrating with Jito (Re)staking, a system built for Solana's Node Consensus Networks (NCNs). Jito allows NCNs to define their own staking rules and penalties for poor performance, creating a more robust and adaptable security model. It also tokenises staked assets into Vault Receipt Tokens (VRTs), making them more flexible and usable.

Switchboard is using Jito's system to launch its own NCN, which will increase the security and reliability of its data feeds. Jito provides a marketplace where node operators (those who manage the NCNs) and the NCNs themselves can connect and collaborate to build a stronger, more interconnected security network. Node operators announce their services on-chain, and Switchboard can then choose to use them.

With Jito, Switchboard can customise its network security – for example, setting specific staking requirements and penalties for misbehaviour. This, along with ongoing monitoring of on-chain and off-chain data, allows Switchboard to precisely manage its security. By combining its data feeds with Jito's restaking capabilities, Switchboard is working to become a leading example of secure and effective restaking on Solana.