Blockchain has evolved from a technology used only for cryptocurrencies to an indispensable ecosystem for diverse applications, from finance to healthcare and logistics. An essential element of the functioning of this technology is the validator, a key component for security and authenticity.
What is a validator?
A validator is a participant in the blockchain network that helps verify and validate transactions. They ensure that all information entered in the blockchain is correct and complies with the network rules. In other words, validators are responsible for maintaining the integrity and security of the blockchain.
They are often used in networks that operate based on a consensus algorithm, such as Proof of Stake (PoS). Unlike Proof of Work (PoW), where miners solve complex mathematical problems, PoS relies on validators who are selected based on the amount of cryptocurrency they hold in the network or use for staking (keeping it locked in the platform).
How does a validator work?
The processes of a blockchain network rely on a consensus mechanism, and validators play a central role in this process. Here are the main steps of how a validator works:
- Proposing a block
Validators propose new blocks that include recent transactions. These proposals are forwarded to other validators in the network.
- Transaction verification
Each validator verifies the authenticity of the proposed information. It ensures that the transactions are not fraudulent and comply with blockchain rules.
- Finding a consensus
Validators work together to reach an agreement on the proposal of a new block. Approved blocks are added to the chain.
- Receiving rewards
Once the block is validated, validators receive rewards, often in the form of cryptocurrencies native to that network (e.g. ETH for Ethereum).
Validators’ roles and benefits
Validators have multiple roles and direct rewards, but they play a crucial role in the health of the blockchain network.
Roles
- Providing security
Validators prevent fraudulent transactions from being added to the blockchain.
- Network stability
They keep the blockchain running continuously by constantly processing transactions.
- Conflict resolution
When conflicts arise regarding the order of transactions, it is the validators who help resolve them.
Benefits
- Financial rewards
Validators earn cryptocurrency as a result of their validation activity (for example, Ethereum offers rewards for PoS validators).
- Network authority
By contributing to the network, validators gain a voice in the future of blockchain.
- Involvement in development
They play an active role in ensuring the development of the network and increasing its resilience.
How to become a validator?
You become a validator on the blockchain through a simple but technically simple process. Here are the general steps:
- Choose a blockchain
Each blockchain has different rules. Ethereum, Polkadot or Cardano are some popular options. Want to understand how the cryptocurrency world works? For all tech enthusiasts, we have prepared the essential guide: What is blockchain? Bitcoin and the blockchain technology revolution that we invite you to read.
- Deposit a minimum amount of cryptocurrency (staking)
Deposit a minimum amount of cryptocurrency required on the network. For example, Ethereum requires 32 ETH to become a validator.
- Set up a validator node
Rent a server or configure your own node using a powerful PC. We recommend highly secure servers for this process.
- Get active
Your node must be constantly connected to the network to validate transactions. Any interruption could result in financial loss.
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