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I understand all that but what I don’t understand is what encourages more physical nodes with high quality bandwidth because it seems like if me and you both wa

I understand all that but what I don’t understand is what encourages more physical nodes with high quality bandwidth because it seems like if me and you both want to stake for PoS then we can even be better off sharing the same hardware and buying higher quality hardware than we could individually, and this is a sub-linear incentive which I would think would result in the physical hardware footprint significantly shrinking. Am I missing something? Now you might say well isn’t that a good thing for less resources but without an incentive to decentralize physically won’t there be a risk of centralization and potentially catastrophic outcomes for the network?

latchkey 4y ago
> what I don’t understand is what encourages more physical nodes with high quality bandwidth because it seems like if me and you both want to stake for PoS then we can even be better off sharing the same hardware and buying higher quality hardware than we could individually. For the same reason that there are a number of mining companies too. But you're right, PoS doesn't 'fix' that problem.
mquander 4y ago
One factor fighting against this is that the validator inactivity fees spike to be larger if a lot of validators are offline at once. So if you think all the existing validators are in e.g. AWS us-west, you are taking more risk by putting your validator in AWS us-west too, because your failures are more likely to be correlated with other validator failures.