In Loki, a portion of the block reward is given to Service Nodes that process and propagate blocks as full nodes. Because Service Nodes with insufficient bandwidth and performance are dropped from the Service Node network, the reward pool self-enforces a minimum performance requirement.  This incentive structure not only ensures that the node count remains high, but that the said nodes are of a sufficient performance level to successfully share blockchain data across the network, irrespective of how large the blockchain grows or how demanding the bandwidth requirements are. 

Loki's Solution to Large Block Sizes

Loki does not have a fixed block size, instead having a block size that changes over time, growing to include more transactions as the network reaches higher transaction throughput. The concern in other cryptocurrencies is that large block sizes burden the nodes that store and verify transactions. 

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- ASIC Resistance
- Dynamic Block Size
- Ring Signature Size

Difference between CryptoNote coins and Loki Service Node

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

Loki Whitepaper

An Application-Specific Integrated Circuit (ASIC) is a computer chip that is built specifically for a single function. For mining, ASICs are used to compute for specific hashing algorithms. They pose a risk to decentralisation because they are manufactured by specific companies and have very limited distribution channels due to the specialised nature of the hardware. To prevent ASIC miners from monopolising the network hashrate, many cryptocurrencies developed ASIC resistant hashing algorithms, like Scrypt and Ethash.

ASIC Resistance

Dynamic Block Size

The size of a ring signature refers to how many mixins are used to construct the ring. Monero currently has an enforced minimum ring signature size of seven, with six mixins used alongside the real unspent output in a transaction. A study found that higher ring-sizes reduce the timeframe in which a malicious attacker who owned a large number of unspent outputs would be able to perform effective analysis of transactions. Mandating larger ring-sizes also protects against a theoretical attack known as an EABE/Knacc attack, where a third-party can perform limited temporal analysis on transactions between two users. 

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