As Loki is the first Monero fork (and CryptoNote coin, by extension) to have an active implementation of Masternodes, we are staggering releases and adding features as we go. This is new territory and each change we make to the the Monero codebase must be extensively tested before release.
What Loki Service Nodes do in the short term? (Right now)
As part of the 1.0.0 release, Loki Masternodes (called Service Nodes) will have minimum functionality; they will store a full copy of the blockchain, and every hour they will publish an uptime proof, which is essentially a ping to the network letting the network know that they are still live. Nodes that have not submitted an uptime proof in 2 hours will be deregistered by voting quorums. Voting quorums are randomly selected sets of 10 nodes which vote on the state of the network every block.
Although the first implementation of Masternodes on a Cryptonote coin is a large move forward in the Masternode world, the major advantages that Service Nodes provide during this beginning stage will be greater privacy when transacting. However, Loki Service Nodes have larger plans ahead, and release 1.0.0 represents only the foundation.
In the Medium Term (3-6 Months)
In the medium term we are working towards making Service Nodes useful to the end user. This includes a couple of essential features:
Every Service Node will now be a remote node that serves the blockchain to users.
Every Service Node can now run tests and collect data on other Service Node performance; they can assess blockchain storage, bandwidth statistics, and provide message storage for Loki Messenger.
Based on these tests, Service Nodes can deregister any underperfoming node if the voting quorum reaches consensus.
Lokinet will be deployed on Service Nodes, along with the Loki Message server.
Adding these features to Service Nodes allows us to deploy our first end-user Loki Service called Loki Messenger. Loki Messenger (based on the Signal protocol) allows users to communicate more privately than ever through the first market-based Sybil resistant mixnet network, Lokinet.
In the Long term (6-12 Months)
In the long term Loki Service Nodes will need to have high capacity bandwidth connections to provide to the Loki network with routing data. Lokinet will become a fully fledged mixnet providing anonymous access to the internet, and will also have direct integration with browsers, providing an integrated solution for private messaging, internet access and finances .
Want to Know More?
Our Whitepaper details the technicals behind Loki’s network architecture and Service Node functionality, and our Cryptoeconomics paper provides an in-depth analysis on the economics around our Service Nodes.