The Proof of Stake (PoS) consensus model transformed the way many blockchains operate, replacing the intense energy consumption of Proof of Work (PoW) with a more sustainable system based on the economic commitment of participants.
At the heart of this change are the validators — fundamental figures for the security and functioning of these networks. Below, I explain their role, how to operate as a validator, and other important details for those interested in this universe.
What does a validator do?
In PoS networks, validators replace the old PoW miners. Their main function is to verify, approve, and record transactions in new blocks. To do this, they must lock (stake) a minimum amount of native tokens.
Validator selection is done randomly, but weighted: the greater the stake, the higher their chances of being chosen. This ensures that validators have 'something to lose' if they act dishonestly.
How to become a validator?
Although it varies by blockchain, the general steps are:
Stake the minimum amount of tokens, for example, 32 ETH for Ethereum.
Run your own node, with reliable hardware and good internet connection.
Maintain uptime and constant performance, as errors or disconnections can lead to penalties.
In smaller blockchains, the requirements are lower. But operating a node efficiently requires technical knowledge and continuous monitoring. For those who do not want to take on that task, there is the option of delegation: tokens are lent to a trusted validator, and both profits and risks are shared.
What incentivizes validators?
The main incentive is economic:
They receive rewards in new tokens (generated block) and transaction fees.
In networks like Ethereum, they can also access MEV (Maximal Extractable Value), generating additional profits from transaction management.
Rewards vary depending on network activity, the number of validators, and the monetary rules of the blockchain. Consistently and reliably validating blocks generates sustainable and scalable income.
Risks of being a validator
There are risks:
Slashing, a penalty that can occur if there are serious errors such as double signing of blocks, excessive offline time, or breaking the system rules.
Operational costs, such as infrastructure, maintenance, and security measures.
Risks of cyber attacks.
In case of delegation, the delegate also runs a risk: if the operator is penalized, part of the stake may be lost.
PoS versus PoW: practical differences
In PoW (e.g., Bitcoin), miners compete by solving mathematical problems, with high energy consumption.
In PoS, the right to validate blocks depends on the stake, which eliminates the need for expensive hardware and reduces energy consumption.
Security in PoS is financial: to attack the network, a malicious actor would need to acquire a large portion of the total stake, which is costly. Moreover, slashing acts as a deterrent mechanism.
Variants and evolutions of PoS
With the evolution of the ecosystem, variants have emerged:
Delegated PoS (DPoS): users choose validators (e.g., TRON, EOS).
Nominated PoS (NPoS): present in Polkadot, where reliable validators are nominated.
Liquid PoS (LPoS): used by Tezos, allows for more flexible staking.
Each variant seeks to adapt the balance between decentralization, efficiency, and governance.
The importance of validators
Validators are the backbone of PoS blockchains. They not only operate nodes but also represent the community's trust and the network's security. In return, they receive rewards commensurate with their commitment and performance.
Becoming a validator requires technical preparation, responsibility, and strategy. But it can also open doors to significant income, especially in large or active networks.
Understanding their role is crucial, whether you plan to validate directly or consider delegating your tokens. Ultimately, the health and proper functioning of the entire ecosystem depend on them.
Are you considering becoming a validator?
#Validators #Pos #Ethereum #Tezos
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Image by iuriimotov, available on Freepik
