Proof of Stake is a consensus algorithm used by many blockchains at the present time when Proof of Work is gradually outdated. It can be said that if Miner is the backbone of PoW, Validator will also play a similar role in the network. PoS grid. So what is Validator? Join Weakhand to learn about the role of Validator in PoS through this article.
What is a Validator?
In Proof of Stake blockchains, Validators are the ones responsible for verifying and arranging transactions taken from the mempool into a new block, contributing to creating a complete new block and then attaching it to the blockchain network, thereby making a profit. profit from this job.
To become a Validator, one needs to stake a certain amount of tokens set according to the requirements of each network. Those who do not have the minimum required amount of tokens can also delegate validators to receive rewards equivalent to being a real validator.
If a Validator violates the rules, causing insecurity for the system in general, they will be fined the amount of tokens they staked, thereby ensuring the security of the blockchain.
Validator’s Working Mechanism
If we talk deeply about the technical side, the operating mechanism of Validators is very complex and is only for truly expert people, so we can understand the mechanism simply as follows:
- Receive transactions from mempool: Validators will in turn select transactions from the network to be sent to the mempool according to the transaction mechanism that pays more fees will be given priority.
- Transaction authentication: Validator checks the validity of transactions using rules and algorithms defined in the blockchain’s source code.
- Packaging transactions and creating blocks: If the transactions are successfully verified, Validator packs them into a new block and generates a digital signature for that block.
- Send blocks to the network: Validator sends the newly created block to all remaining Validators to synchronize and add that block to the blockchain.
- Get reward: Validator will receive a reward from transaction fees in the newly created block.
The Difference Between Validator And Miner
|
Header
|
Criteria |
Validator |
Miner |
|---|---|---|---|
|
first |
Hardware requirements |
Medium |
High |
|
2 |
Consumes energy |
Little |
Much |
|
3 |
Staking is required |
Have |
Are not |
|
4 |
Revenue source |
Transaction fees and rewards inflation |
Transaction fees and block rewards |
For comparison, we can see that the hardware and energy requirements of Validator are much lower than Miner, however, the need to stake an amount of tokens to authenticate transactions on the network is also a difficult task. reach many people.
Benefits of Becoming a Validator
When becoming a Validator in the blockchain system, people will have the following benefits:
- Processing fee: In some blockchain systems, Validators will receive a processing fee for each transaction they validate. This is a way to earn money for holding keys and participating in building the system.
- Join the community: Some blockchain systems also have Validator communities where members exchange ideas, share experiences and help each other in holding keys and building systems.
- Knowledge and skills: Becoming a Validator requires you to have knowledge and skills about blockchain and cybersecurity. Participating in the system will help you develop and improve these skills.
- Administrative rights: When becoming a Validator, everyone will have the right to vote on that network’s proposals, this helps Validators hold a certain amount of power over the community.
Risks of Becoming a Validator
There are some risks when becoming a validator in a blockchain network as follows:
- Token price decreased: The biggest risk is that the price of staking tokens will decrease and the time to withdraw those tokens from the network will take several days, even weeks, making it impossible for Validators to escape their positions.
- Security risks: Blockchain networks are very secure thanks to consensus participation from many different Validators around the world, but there are still some rare cases where blockchains are attacked, causing loss of assets of participants.
- Technical issue: Some technical issues may occur, especially when upgrading to new versions, causing byproducts and bottlenecks.
- Laws and regulations: Since cryptocurrency and blockchain regulations are still in development, there may be a risk of legal issues associated with becoming a validator.
Which Networks Can Validators Join?
Validators can participate in consensus on blockchain networks using Proof of Stake (PoS) or Proof of Authority (PoA) algorithms.
Popular blockchain networks that use PoS include Ethereum 2.0, Cardano, Polkadot, Solana, Avalanche and many others. While blockchain networks using PoA such as VeChain and POA Network also allow Validators to play an important role in validating and agreeing transactions.
Therefore, Validator can participate in consensus and authenticate transactions on many different blockchain networks.
Summary
Above is what everyone needs to know to understand what Validator is? Weakhand Hopefully through this article, everyone will find the necessary information to serve their research process.
