Validator

November 21, 2023 - Around 2 mins mins to read

What Is a Validator?

A validator is a crucial component of the Proof of Stake (POS) consensus mechanism that authenticates blocks to earn rewards.

The decentralized nature of blockchain technology is impressive and promising, leading to its increasing adoption. Every blockchain consists of nodes, which store data. However, this data needs validation or verification on the blockchain network. This is where a validator comes in.

There are two common validation protocols in a blockchain network: Proof-of-Work and Proof-of-Stake.

Similar to a banker who verifies a transaction before processing it, a validator verifies each incoming transaction.

A transaction can only be completed and added to the blockchain if a validator confirms its accuracy and legal authenticity.

In the Proof-of-Stake mechanism, a validator determines if a transaction complies with the rules that define it as valid. This process ensures the security and transparency of a blockchain network.

PoW vs PoS

Some blockchains use the Proof-of-Work model for validation, while others rely on the Proof-of-Stake method. In blockchains that follow the PoW method, miners solve complex mathematical problems, and other nodes verify this information to earn rewards. Miners also act as validators in this method. The miner who solves the puzzle first gets to add their block and receive rewards.

However, PoW has drawbacks. Mining is not the most efficient solution due to its requirements, such as specialized hardware for generating the necessary computational power and high energy consumption.

On the other hand, Proof-of-Stake does not require specialized hardware or excessive energy consumption. This method focuses on the power of the currency by determining participation based on the coin supply. The protocol randomly selects validators based on the staked coins. Validators in this mechanism receive transaction or network fees as rewards.

In principle, both validation protocols share a common goal. However, Proof-of-Stake is considered safer and more efficient than Proof-of-Work.

Glossary