What is Validator?
Let's find out Validator meaning, definition in crypto, what is Validator, and all other detailed facts.
A validator is a participant of a Proof-of-Stake (PoS) blockchain network. As part of the PoS consensus mechanism, validators are responsible for verifying new blocks and adding them to the chain to earn rewards.
Most blockchains are designed to be decentralized. This means that there is no single centralized authority that the blockchain answers to. Instead, all processes are handled by a network of decentralized nodes scattered across the globe. The nodes contain data that needs to be validated by the network.
There are numerous validation methods, known as consensus mechanisms, throughout the different blockchain systems. However, the two most popular methods are Proof-of-Work (PoW) and Proof-of-Stake (PoS). Consensus mechanisms are used to verify incoming transactions to ensure that double-spending doesn’t occur, and the data is accurate.
The validators have one of the key roles in the blockchain network. They confirm the authenticity and accuracy of the transaction records. If the information they analyze is correct, the transaction is deemed completed, and its data is added to the blockchain.
Proof-of-Work vs. Proof-of-Stake
The Proof-of-Work consensus mechanism is the process of verifying cryptocurrency transactions via mining. Bitcoin (BTC), the first cryptocurrency in the world, utilizes the PoW mechanism to create new blocks. Miners use special computers to solve complicated mathematical problems known as hashes.
If a miner successfully solves a hash, the information is forwarded to the rest of the mining network to confirm it. If the information is deemed correct, a new block is created and added to the blockchain, and the miner receives cryptocurrency rewards. Miners essentially play the role of validators on PoW systems.
However, the PoW mechanism is highly flawed as it requires the miners to possess specific hardware to work optimally. Furthermore, the energy consumption required to solve hashes is really high, leading to increased electricity bills and heat emissions.
The Proof-of-Stake consensus algorithm does not require validators to have specific hardware. Instead, the participants stake their coins in a shared pool. The validators analyze the blocks based on certain rules set by the blockchain. They receive rewards in the form of transaction or network fees for verified transactions.
While the Proof-of-Work mechanism is more widely spread, newer blockchains pot for the safer and more efficient Proof-of-Stake mechanism. The Ethereum (ETH) blockchain aims to switch from the PoW system to PoS in the near future.