What Is the Difference between a “Validator” and a “Miner” in Blockchain Consensus?
A "miner" operates in a Proof-of-Work system, expending computational power (hash rate) to solve a cryptographic puzzle and create a new block. They are rewarded with the block subsidy and transaction fees.
A "validator" operates in a Proof-of-Stake system, putting up financial collateral (stake) to be randomly selected to propose and attest to new blocks. They are rewarded with transaction fees and newly minted tokens.
The key difference is the cost of participation: energy for miners, capital for validators.
Glossar
Block Subsidy
Genesis ⎊ Block subsidy, within cryptocurrency networks, represents the initial allocation of newly minted coins to miners or validators as a reward for processing transactions and securing the blockchain.
Financial Collateral
Guarantee ⎊ Financial collateral, within cryptocurrency, options, and derivatives, represents pre-defined assets pledged to mitigate counterparty credit risk, ensuring performance obligations are met.
PoS Validator
Entity ⎊ A PoS Validator is a network Entity, typically a server running specialized software, that actively participates in the Proof-of-Stake consensus mechanism by validating transactions and creating new blocks.
Computational Power
Capacity ⎊ The computational power, within the context of cryptocurrency derivatives and options trading, fundamentally represents the aggregate processing capability available to execute complex calculations and simulations.
Transaction Fees
Cost ⎊ Transaction fees represent a quantifiable expense incurred for processing and validating transactions across diverse financial systems, functioning as a critical component of network participation and security.