Introduction

An Operator is an organization or team responsible for deploying and running Bitcoin Validated Services (BVS).

Responsibility of Operators

Operators assume responsibilities similar to those of administrators in traditional Web2 services, including:

• System setup and configuration

• Maintaining system stability

• Ensuring system security

• Providing network connectivity and redundancy

In addition, SatLayer’s node operators are required to:

• Stake to the SatLayer protocol directly or secure sufficient stake delegation from others to meet minimum requirements.

• Maintain their staked amount to retain their status as an operator.

Once operators meet these requirements, they are permitted to run one or more BVSs on the SatLayer network, depending on their risk tolerance, system capabilities, and preferences.

Operators’ Risks

Each Bitcoin Validated Service (BVS) can define its own specific slashing conditions to enforce reliability. Here are some examples of possible slashing conditions:

• Incorrect Results: A BVS might slash an operator by 20% each time incorrect results are returned and signed.

• Downtime Penalties: Frequent network connectivity issues can lead to downtime penalties, as some BVSs require stable systems for participation.

• Security Breaches: There is also the risk of attackers gaining shell access to an operator’s machine, potentially leading to severe security breaches.

Operators are responsible for auditing and monitoring their systems, maintaining stable network connectivity, and ensuring robust system security and availability. SatLayer promotes quality service by providing BVSs with the tools to slash operators when performance or security issues arise.

Operators’ Rewards

While operators assume certain risks, they are rewarded by BVS developers (and ultimately by the actual users of the BVS) through the RewardCoordinator contract.

Each BVS defines its own reward conditions and methods for calculating distribution amounts. These reward calculations involve both on-chain and off-chain components, ensuring protection and security at all stages.