What are Validators?
Validators are entities, often individuals or organizations, that play a crucial role in maintaining the security and operation of a blockchain network. In cryptocurrency ecosystems like Ethereum or other Proof-of-Stake (PoS) networks, validators confirm transactions and add them to the blockchain.
Unlike miners in Proof-of-Work (PoW) systems, validators do not solve complex puzzles but instead validate transactions by staking a portion of their cryptocurrency. The more a validator stakes, the higher the chance they will be selected to validate the next block. Validators earn rewards for participating, often in the form of newly minted cryptocurrency or transaction fees.
In order to be selected as a validator, participants need to meet specific requirements, such as staking a minimum amount of cryptocurrency. If a validator acts maliciously or attempts to cheat the system, their staked funds can be “slashed,” meaning they lose part or all of their stake. This mechanism encourages validators to act honestly and helps protect the blockchain from fraudulent activities.
Validators are critical to the blockchain’s decentralized nature, as they help achieve consensus across the network and ensure that only legitimate transactions are added to the blockchain.