Golden Encyclopedia | What is a blockchain validator?

Author: Dilip Kumar Patairya, CoinTelegraph; Compiler: Deng Tong, Golden Finance

1. The role of validators in the blockchain

Validators are responsible for adding new blocks and Validating transactions in proposed blocks thus plays a vital role in the functioning of the blockchain.

Validators are crucial for validating transactions in blockchain consensus mechanisms such as Proof of Stake (PoS) and Proof of Authority (PoA). They check that new transactions comply with network rules and ensure that the sender has sufficient funds to complete the transaction.

Validators are also responsible for ensuring the security of the blockchain by monitoring the network for any malicious activity, such as double spends. The term "double spend" refers to spending the same currency unit twice. Blockchain prevents this from happening by connecting an open ledger with cryptographic algorithms.

Validators are paid in the underlying blockchain’s native cryptocurrency. For example, validators on the Solana blockchain are paid in SOL (SOL).

2. How Proof of Stake (PoS) validators work

PoS validators check whether the transactions in the proposed block are valid, add the block to the blockchain, and Maintain records in a distributed ledger. For their contributions, they are rewarded with native cryptocurrency.

In a PoS blockchain, a validator has three main roles: validator client, node operator, and stake amount. A validator client is a software application that saves and uses private keys to verify the state of the blockchain. A node operator is the person or entity that runs and manages the validator client software and hardware. Staking amount refers to the amount of cryptocurrency deposited by an individual or entity as collateral in order to become a validator.

A validator is randomly selected from the validator pool to propose a block. Proposers prepare blocks and broadcast proposals to the entire network. The validator community approves the transactions proposed in the block. It is important to note that only verified transactions achieve finality.

On the Ethereum blockchain, the total number of validators is divided into different subsets to process multiple blocks simultaneously to speed up the verification of transactions. The function by which validators agree on the state of the blockchain is called consensus.

There are also Delegated Proof of Stake (DPoS) blockchains, where network users vote for representatives to validate the next block. Compared to PoS, DPoS brings leaner governance and faster consensus because the number of validators is reduced without affecting decentralization. Delegates distribute the rewards they receive to users who choose them.

3. How Proof of Authority (PoA) validators work

In a PoA blockchain, a group of validators selected based on their identities approve transactions and generate new blocks.

The PoA consensus mechanism consists of a small group of pre-selected validators who are entrusted with generating new blocks and maintaining the accuracy of the network. It works well in private or enterprise blockchains, where trusted individuals or entities are chosen as validators and decentralization is a lower priority.

To enter a PoA network as a validator, one typically needs to have a formal identity on the blockchain, be associated with the host organization, and have no criminal record. Once inside, they are entrusted with validating transactions and adding blocks to the blockchain.

On a PoS network, validators run specialized software to manage transactions and mint blocks. Validators are usually chosen to propose blocks based on their stake. In some systems, a validator is chosen to serve as the "leader" for each block and is responsible for submitting it to the network.

Other validators then validate the leader through consensus, ensuring the validity of the block before adding it to the blockchain. The criteria and process for selecting this leader node can vary significantly across different PoS implementations.

If a validator approves malicious or fraudulent transactions, it may be subject to penalties in the form of expulsion from the list of validators for a period of time or a complete ban.

4. What is the difference between miners and validators?

In PoW blockchains such as Bitcoin, miners verify transactions and add them to the blockchain through mining, while other nodes act as validators by validating transactions and blocks, while Not involved in the mining process. Validators in stake-based systems approve transactions and create blocks based on transactions to stake without doing extensive computation.

Both miners and validators ensure the accuracy of transactions and add blocks to the blockchain. However, their responsibilities and how they operate vary depending on the type of blockchain they work on.

In a PoW system, miners solve complex puzzles by adding blocks to the blockchain. In the process, they validate transactions by including them in the blocks they mine. Solving these puzzles requires immense computing power while competing with other miners. The miner who solves the problem first can add their block to the blockchain and be rewarded with native cryptocurrency or transaction fees.

Validators are responsible for validating transactions in PoS and PoA blockchains. In PoS blockchains like Ethereum, they are selected based on the number of tokens staked as collateral. On the other hand, on the PoA blockchain, they are selected based on their reputation and identity. The system rewards validators for validating transactions and behaving honestly.

5. What is the operation process of the verifier node?

Starting running as a validator requires six steps. It includes choosing a blockchain, setting up hardware, installing software, joining as a validator, monitoring nodes and managing rewards.

Effectively operating a validator node requires a series of steps:

Select a blockchain

The first step is to choose a blockchain, preferably one with high transaction volume and requiring validators.

Setting up the hardware

In order to run a node, a validator needs a computer with sufficient RAM, storage, and processing power. Each blockchain has its own specifications for hardware requirements.

Installing software

Validators need to install and configure software programs for the blockchain of their choice. All blockchains use different verification software. Keep your software up to date and use strong passwords to protect your validator nodes from hackers.

Join as a validator

PoS blockchain requires people to stake a required amount of cryptocurrency and join the network as a validator. On the other hand, on the PoA blockchain, proof of identity is required to join. Some blockchains require validators to join a validator pool.

Monitoring Nodes

Validators must constantly monitor their nodes to ensure they are running smoothly and to fix any issues that may arise.

Manage Rewards

The blockchain pays validators fees in the form of cryptocurrency. Validators need to be proficient in the reward structure and the process of receiving rewards.

6. Emerging trends and innovations in the field of blockchain verification

The demand for more secure, scalable and practical solutions is driving the significant development and development of blockchain verification. breakthrough.

One trend is to develop consensus methods that go beyond the traditional PoW and PoS models. Protocols such as Proof of Burn (PoB), PoA, and Proof of Space (PoSpace) offer unique verification methods with a focus on user engagement, security, and energy efficiency.

Another innovation is the use of zero-knowledge proofs, which enable validators to confirm transactions without revealing the underlying data, thereby increasing security and privacy. In addition, interoperability solutions are being developed to facilitate communication and value transfer between different blockchain platforms to promote a more integrated and efficient blockchain ecosystem.

These advancements usher in a new era of blockchain technology, making blockchain more broadly applicable, accessible, and sustainable across many industries.