Validator

What is Validator?

A validator is a core participant in a Proof of Stake (PoS) or other stake-based blockchain consensus mechanism, responsible for validating new transactions, proposing and confirming blocks, and ensuring the security and continuity of the network. Unlike miners in Proof of Work (PoW) systems who rely on computational power, validators are selected based on the amount of cryptocurrency they “stake” as collateral.

Validators play a crucial role in maintaining consensus by checking the validity of transactions and signing off on blocks. Their selection for block proposal or validation is typically determined by a combination of factors such as the amount of staked tokens, the length of time those tokens have been staked, and often a degree of randomness to prevent centralization.

In return for their services, validators earn staking rewards, usually in the form of newly minted tokens or a share of transaction fees. However, if a validator behaves maliciously or fails to remain active, they may incur penalties through a process known as slashing, which reduces or forfeits their staked assets. This incentivizes validators to act honestly and reliably.

Validators are essential to the trust model of PoS systems, where network security is tied directly to economic incentives and the assumption that participants act in their own financial interest. Popular PoS networks that use validators include Ethereum (post-merge), Cosmos, and Polkadot.