What Role Do ‘Validators’ Play in the Token Transaction Process on a PoS Network?
Validators are responsible for proposing and attesting to new blocks of transactions, which include token transfers and smart contract executions. They are selected based on the amount of token they have staked.
By confirming the legitimacy of transactions, they secure the network and are rewarded with transaction fees and newly minted tokens. Misbehaving validators can be 'slashed' or penalized.
Glossar
Minimum Staking Requirement
Protocol ⎊ Within cryptocurrency staking and decentralized finance (DeFi), the minimum staking requirement establishes a baseline threshold for asset immobilization, influencing network participation and governance rights.
Major PoS Network
Network ⎊ A major Proof-of-Stake (PoS) network represents a decentralized ledger system that achieves consensus and validates transactions based on the economic stake of its participants rather than computational power.
Transaction Fees
Fee ⎊ Transaction fees, inherent in cryptocurrency, options, and derivatives markets, represent the cost of executing trades and utilizing network infrastructure.
Misbehaving Validators
Violation ⎊ Misbehaving validators are network participants who commit consensus violations, either intentionally for malicious gain or unintentionally due to technical failure or poor operational security.
Token Transaction Process
Flow ⎊ The token transaction process describes the sequence of operations from a user initiating a transfer or contract interaction to its inclusion in a validated block on the blockchain.