Relay Mining: Incentivizing Full Non-Validating Nodes Servicing All RPC Types

TL;DR

Relay Mining introduces a scalable, crypto-economic system that incentivizes full non-validating nodes to service all RPC types in permissionless networks, enhancing decentralization and reducing reliance on centralized providers.

Contribution

The paper presents a novel cryptographic and economic framework enabling multiple RPC providers to service requests in a permissionless setting, using new proof schemes and dynamic rate limiting.

Findings

Proposes a new ClosestMerkleProof scheme for proof-of-inclusion.

Demonstrates a scalable incentive mechanism for RPC servicing.

Integrates rate limiting with crypto-economic incentives.

Abstract

Relay Mining presents a scalable solution employing probabilistic mechanisms, crypto-economic incentives, and new cryptographic primitives to estimate and prove the volume of Remote Procedure Calls (RPCs) made from a client to a server. Distributed ledgers are designed to secure permissionless state transitions (writes), highlighting a gap for incentivizing full non-validating nodes to service non-transactional (read) RPCs. This leads applications to have a dependency on altruistic or centralized off-chain Node RPC Providers. We present a solution that enables multiple RPC providers to service requests from independent applications on a permissionless network. We leverage digital signatures, commit-and-reveal schemes, and Sparse Merkle Sum Tries (SMSTs) to prove the amount of work done. This is enabled through the introduction of a novel ClosestMerkleProof proof-of-inclusion scheme. A native cryptocurrency on a distributed ledger is used to rate limit applications and disincentivize over-usage. Building upon established research in token bucket algorithms and distributed rate-limiting penalty models, our approach harnesses a feedback loop control mechanism to adjust the difficulty of mining relay rewards, dynamically scaling with network usage growth. By leveraging crypto-economic incentives, we reduce coordination overhead costs and introduce a mechanism for providing RPC services that are both geopolitically and geographically distributed. We use common formulations from rate limiting research to demonstrate how this solution in the Web3 ecosystem translates to distributed verifiable multi-tenant rate limiting in Web2.