Due to the construction of CryptoNote currencies, public full nodes (remote nodes) are put under a lot of stress. When a user connects to a remote node, they must temporarily download every block to their local machine and check each transaction for a public transaction key. Loki solves this by requiring each Service Node to act as a remote node that can be used by general users. Service Nodes naturally lend themselves as they already hold a full copy of the blockchain and form a widely distributed network of high bandwidth nodes. Using Service Nodes as remote nodes, allows for an inherent financial limitation as to how much of the remote node network any given party can own.

University of Connecticut

- Loki Messenger
- SNApps
- Exit Nodes
- Remote Nodes
- Blink

Loki Services Elements

https://loki.network/wp-content/uploads/2018/10/LokiWhitepaperV3_1.pdf

Loki Whitepaper

An end to end encrypted private messaging application, Loki Messenger provides a platform for users to send messages without revealing their contents. Although some already exist, they rely on a centralized network, and present high risk for potentially revealing the communicating parties. Loki uses the service node architecture to deliver the same encryption but with more privacy and censorship resistance.

Loki Messenger

SNApps are service node applications, with the function of providing users with a way to interact fully within the mixnet environment, providing an incredible high degree of anonymity. SNApp operators use the traditional server-client model with the key difference being that Service Nodes will be intermediaries in a users connection through Lokinet. When a SNApp wishes to register on the network, it must update the DHT with its descriptor, which includes various introducers. This helps users connect to the SNApp without either party knowing where the other is located in the network. 

SNApps

Exit nodes allow users to make requests to the wider internet and return those requests through a mixnet. However, forcing all Service Node operators to act as exit nodes could be detrimental, as acting as an exit node may expose the operator to legal risks, as users of the exit node may perform malicious activity whilst using it as a proxy. Opting-in as an exit node affords an operator double the reward of a normal relay when selected for a block reward. This incentive is provided to ensure that exit node operators have sufficient financial incentives to operate exit nodes.

Exit Nodes

Remote Nodes

Because of Loki’s Service Node architecture, near instant transactions are possible. Blink enables the same transactions that would occur on the Loki mainchain to be confirmed before being included in a block, assuring both the sender and the receiver of the validity of the transaction and protecting the receiver against a double spend. Users will have the ability to pay a higher fee to send a Blink transaction which will confirm in seconds rather than in minutes. This opens up a range of new use cases for Loki where face-to-face payments become increasingly practical and online payments become easier to integrate. 

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