There are three types of nodes within the AllianceBlock ecosystem.
Institutional nodes:
These nodes are owned by institutions. They provide updates to the network and consensus with regard to compliance and regulation. To become an institutional node, the entity must comply with a set of predefined rules and regulations. The entity can join the network and stake tokens, but in order to broadcast transactions and participate in network updates, the node owner must be elected by users during the token delegation process. The initial number of institutional nodes is set at 10 and will increase over time. In the beginning, all nodes will be provided by the AllianceBlock Foundation and early foundation partners. Together with the development of the network, nodes ownership will be diluted and democratized by adding additional independent network participants as nodes owners. For more on the process, see our chapter on Governance Protocol.
Data nodes:
In order to be able to process data on the platform, the data node owner needs to comply with the data policy regulation of certain jurisdictions such as GDPR. After completing the application and providing relevant documentation, the data node owner is able to buy, sell, process, and store data on the AllianceBlock ecosystem. Additionally, the owner is able to stake tokens to benefit from the Network Reward Protocol. Data nodes maintain the data layer on the blockchain. They do not broadcast transactions or vote on network updates, but they are able to delegate staked tokens to institutional nodes to increase their voting power.
Service nodes:
Every business, company, or advisor must set up a service node in order to provide services within the ecosystem. In order to maintain transparency and regulatory compliance, service node candidates must provide relevant documentation about their business or legal entity. After approval, they can provide services on the platform and stake tokens to participate in the ecosystem. Service nodes do not broadcast transactions or vote on network updates, but like data nodes, they are able to delegate staked tokens to institutional nodes to increase their voting power.
