What Role Do ‘Validator Nodes’ Play in a Staking-Based System?
Validator nodes are computers running the protocol software that are responsible for proposing, verifying, and attesting to new blocks in a Proof-of-Stake (PoS) system. They must have a required amount of cryptocurrency staked as collateral.
Validators receive rewards (transaction fees and/or inflation) for honest participation and face penalties (slashing) for misbehavior. They are the core infrastructure that maintains the security and integrity of the blockchain.
Glossar
Nodes
Architecture ⎊ Nodes, within distributed ledger technology, represent specific points of data storage and processing capacity integral to network operation, differing from centralized systems through inherent redundancy and decentralization.
Honest Participation
Integrity ⎊ Honest Participation within cryptocurrency, options trading, and financial derivatives necessitates a commitment to transparent reporting of positions and trading activity, mitigating informational asymmetry that can destabilize markets.
Validator
Role ⎊ A validator is a critical network participant in a Proof-of-Stake blockchain responsible for proposing, verifying, and attesting to new blocks of transactions to maintain consensus and secure the distributed ledger.
Protocol Software
Code ⎊ Protocol Software refers to the open-source codebase that dictates the rules, logic, and consensus mechanism by which a blockchain network operates, including transaction processing and validator functions.