Posted May 02, 2022

Blockchain Validator

Blockchain Validator

A blockchain validator is a person who verifies transactions on a blockchain. Once confirmed, transactions are added to the ledger that is distributed.

Validation nodes are responsible for adding new blocks and verifying transactions in proposed blocks, thereby playing a key role in the functioning of the blockchain.

A validation node is crucial for validating transactions in blockchain consensus mechanisms such as Proof of Stake (PoS) and Proof of Authority (PoA).

They verify that new transactions comply with network rules and ensure that the sender has sufficient funds to complete the transaction.

This nodes are also responsible for ensuring the security of the blockchain by monitoring the network to detect any malicious activity, such as double spending.

The term “double spending” refers to spending the same monetary units twice.

Blockchains prevent this by linking an open ledger to cryptographic algorithms.

They are charged in the native cryptocurrency of the underlying blockcha

For example, validation nodes on the Solana blockchain are charged in SOL (SOL) cryptocurrency.

HOW VALIDATORS WORK IN THE PROOF OF STAKE (POS) SYSTEM

PoS validators check whether the transactions in the proposed block are valid, add the block to the blockchain and keep track of the transaction ledger.

For their contribution, they earn rewards in native cryptocurrency.

In PoS blockchains, validators have three main roles: validation node client, node operator, and stake amount.

A validation node client is a software application that owns and uses private keys to verify the state of the blockchain.

A node operator is an individual or entity that runs and manages the validation software and hardware.

The stake amount refers to the cryptocurrency that an individual or entity deposits as collateral to become a validator.

One validator from the set of validators is randomly selected to propose the block.

Proposer prepares the block and broadcasts the proposal to the entire network.

Community of validators 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 different blocks simultaneously and to speed up the speed of transaction verification.

Function of validators agreeing on the state of the blockchain is called consensus.

There are also delegated proof-of-stake (DPoS) blockchains, where network users vote to elect delegates to validate the next block.

Unlike PoS, DPoS brings better coordinated governance and faster consensus, since the number of validators is reduced without compromising decentralization.

Delegates distribute the rewards they have earned among the users who have chosen them.

ROLE OF THE VALIDATOR IN THE PROOF OF AUTHORITY (POA) SYSTEM

In PoA blockchains, a group of validators are selected based on their identity approve transactions and produce a new block.

The inter-network of PoA consensus mechanism consists of a small number of pre-selected validators who are responsible for generating new blocks and maintaining the integrity of the network.

It serves well in private or corporate blockchains where trusted persons or entities are chosen as validators and decentralization is low on priorities.

In order to become part of the PoA network as a blockchain validator, it is usually necessary to have a formal identity on the blockchain, affiliation with a domestic organization and a clean record with no criminal records.

Upon receipt, blockchain validators are responsible for verifying transactions and adding blocks to the blockchain.

On PoS networks, validators run specialized software to manage transactions and create blocks.

Validators are chosen, often based on their role, to propose blocks.

In some systems, one validator is chosen as the “node leader” for each block and is in charge of proposing it to the network.

That handler is then verified by other validators via consensus, ensuring the block’s validity before adding it to the blockchain.

The criteria and process for selecting this lead node can vary considerably in different PoS implementations.

If a validating node approves a malicious or fraudulent transaction, it can be punished in the form of exclusion from the list of validating nodes for a certain period of time or a complete ban.

WHAT IS THE DIFFERENCE BETWEEN MINERS AND VALIDATORS?

In PoW blockchains like Bitcoin, miners verify and add transactions to the blockchain through mining, while other nodes act as validators verifying transactions and blocks without contributing to the mining process.

On the other hand, validators in stake-based systems approve transactions and create blocks based on their stake without intensive computation.

Both miners and validators ensure the accuracy of transactions and add blocks to the blockchain.

However, their responsibilities and ways of functioning differ depending on the type of blockchain they work on.

Blockchain Validator – Responsibility


In PoW systems, miners solve complex puzzles to add blocks to the blockchain.

In the process, they verify transactions by including them in the blocks they mine.

Solving these puzzles requires enormous computing power while competing with other miners.

The first miner to solve the problem adds their block to the blockchain and is rewarded with native cryptocurrency or transaction fees.

Validators are in charge of verifying transactions in PoS and PoA blockchains.

In PoS blockchains like Ethereum, they are chosen based on the number of coins they have deposited as collateral, while in PoA blockchains they are chosen based on their reputation and identity.

The system rewards validators for certifying transactions and fair behavior.

VALIDATOR NODE LAUNCH PROCESS

This process consists of 6 steps which are:

Choosing a blockchain – The first step is to choose a blockchain, preferably one with a high transaction volume and need for validators.

Hardware setup – To run a node, validators will need a computer with an adequate amount of RAM, storage space, and processing power.

Each blockchain has its own specifications regarding hardware requirements.

Software Installation – The Validator needs to install and configure the software program for their chosen blockchain.

All blockchains use different validation software.

It is important to update the software regularly and use strong passwords to protect validator nodes from hacking attempts.

Joining as a validator – PoS blockchains require a certain amount of cryptocurrency to be deposited and join the network as a validator.

On the other hand, on PoA blockchains, authentication is required to join.

Some blockchains require validators to join a pool of validators.

Node Monitoring – Validators must constantly monitor their node to ensure it is running smoothly and to resolve any issues that may arise.

Reward Management – Blockchains pay rewards to validators in the form of cryptocurrency.

Validators must be familiar with the reward structure and the procedure for claiming their rewards.

NEW TENDENCIES AND INNOVATIONS IN THE FIELD OF BLOCKCHAIN VALIDATION

The need for more secure, scalable and practical solutions is driving significant developments and breakthroughs in blockchain validation.

One of the trends is the development of consensus methods beyond the conventional PoW and PoS models.

Protocols such as Proof of Consumption, PoA, and Proof of Space (PoSpace) provide distinctive validation methods focused on user involvement, security, and energy efficiency.

Another innovation is the use of zero-knowledge proofs, which improves security and privacy by allowing validators to confirm transactions without revealing underlying data.

Furthermore, interoperability solutions are being developed to facilitate communication and transfer of value between different blockchain platforms to promote a more integrated and efficient blockchain ecosystem.

These advances usher in a new era in blockchain technology, making blockchains widely applicable, accessible and viable across many industries.

This is not financial advice, the article presents a view of the current market situation. You are responsible for your own investments!

Binance

It is a popular Cryptocurrency exchange because they list more than 100 different coins. It is one of the most trusted platforms as they support multiple fiat currencies like USD, EUR, RUB, TRY etc. It has become so popular that it has stopped creation of new accounts.

Kraken

From day one, they are designed and built for newcomers and experts alike. They become one of the largest bitcoin exchanges, serving clients in over 190 countries, and continue helping people discover the world of crypto. Learn How to buy Tron.

CEX

Established in 2013, London based CEX.io is a Bitcoin exchange as well as a cloud mining providing company. The company supplies both a trading platform and brokerage services for Bitcoin, Ethereum and a range of other cryptocurrencies.

RELATED POST

Blockchain Validator

Posted May 02, 2022 Blockchain Validator Blockchain Validator A blockchain validator is a person who verifies transactions on a blockchain. Once confirmed, transactions are added...