Understanding Blockchain Validators
What is a Validator?
A blockchain validator is like a gatekeeper-plus-banker who is responsible to verify the incoming transactions on a blockchain network. No transaction is ever considered complete until it is verified, irrespective of being legal or accurate.
The ones who perform this action, solve complex computational math problems to check a transaction’s authenticity and then proceed to add that transaction to the distributed ledger.
Who can be a Validator?
Usually, any network participant can be a candidate to serve as a validator on a public blockchain. In the case of private blockchain networks, permission is required by the individual. One must have a PubKey (account to be used for validation) and declare their commission rates, varying network to network.
They also need to have a significant cap of tokens on the network, a cloud-based server and server-level hardware.
After the declaration, the top candidates are chosen based on their stakes. This also brings into the picture, the possibility of a validator to go on and become a ‘proposer’ — one who proposes the next block.
Why are Validators needed?
- to build a more secure network
- to verify transactions and avoid the paradox of double spends
- to optimise efficiency
- help protect decentralisation, by validation from within the network instead of any external authority
How is this process foolproof?
Mostly, implementation of the trustworthy Proof of Stake(PoS) Consensus, validators are randomly selected to perform block creation and validation. This generates an unpredictable chain of each validator, ensuring a commitment from their end to remain onboard with their coins at stake. This risk-reward commitment makes validators pursue the job with integrity. Some networks even blacklist malicious performers for intended discrepancies.
When do they fetch rewards?
A reward is transferred only if the block is created by the validator.
What are the rewards in store?
The stakes are usually collaterals to keep validators on their toes and prevent them from performing malicious validations. Usually, the rewards validators receive are the transaction fees and the commission rates set by them upon the acceptance of the delegates.
Validation precedes Consensus
Validation and consensus are two separate terms. A transaction may be ‘valid’ but not enjoy the consent of the network or vice versa.
Validation is the initial step handled by the miner before getting added to the block. Then, as a next step, a block winner is picked. This block is added to the Blockchain verified by validators. Then through other Blockchain validators, if Consensus is reached, then the network successfully moves on to the next block.
There are two consensus methods
- Proof of Work (PoW) = competing to solve a cryptographic puzzle, the one who solves first, wins and their block is added. (Usually, computers are put at this method, with an aim to mint new coins)
- Proof of Stake (PoS) = Random selection of validator. Under PoS, there are two different methods as well. While first is Delegated PoS where participants chose a delegate, second is Leasing PoS where participants lease out coins to share rewards upon the verification of blocks.
Related links :
1) How to become a validator on Cosmos Network
2) Guide to be a Validator (bit technical)
