What is a Blockchain Validator?

What is a Blockchain Validator?

April 18, 2023 | Updated April 18, 2023

KEY TAKEAWAYS:
— A blockchain validator is a node on a blockchain network that is responsible for verifying transactions on the network.

— Validators are an important component of a blockchain network, helping to ensure security, accuracy and reliability.

— Validators differ from miners in that they do not compete to add blocks to the blockchain, but rather are selected from the network to validate transactions.

As you’ve been exploring the world of cryptocurrency, you may have come across the terms “validator” or “miner.” But do you know what they do and do you know the difference between them? A validator plays an important role in validating transactions on specific blockchains that use a Proof-of-Stake (PoS) consensus, such as Ethereum and Solana. As such, it’s important to understand what they do if you want to explore these popular ecosystems.

So what exactly is the role of the validator; What do they do and how do they do it? Let’s take a closer look at the role of a cryptovalidator in a PoS blockchain and how you can become one yourself.

What is a validator in Crypto?

A validator is a participant in a Proof of Stake (PoS) blockchain network who is responsible for validating new transactions and maintaining the security of the blockchain. Validators do this by staking crypto to support the network.

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What do blockchain validators do?

Essentially, validators verify new transactions and add them to the blockchain. This involves checking that blockchain transactions are valid according to the network’s rules and ensuring that the sender has enough funds to complete the transaction. In return for their work, validators receive transaction fees.

In addition to validating transactions, validators also play a critical role in maintaining the security of the network. They do this by monitoring the blockchain for signs of malicious activity, such as double spending

To become a validator, a network participant must unlock a certain amount of the network’s native cryptocurrency. This is called crypto staking. They provide this amount as collateral to ensure their honesty. Essentially, validators are incentivized to play by the rules, as their stake, i.e. their money, can be cut if they attempt malicious behavior.

Validators vs. Miners: What’s the difference?

A validator is similar to a miner in that they both add blocks to the blockchain. However, there are some important differences between the two.

First, miners validate transactions on blockchains that use a Proof-of-Work consensus mechanism, such as Bitcoin.

With this method, miners with specialized computers must work to solve complex mathematical problems. The miner who solves the puzzle first receives both a block reward and the transaction fee. However, this requires specific hardware and a lot of energy.

On the other hand, validators can validate transactions on Proof-of-Stake (PoS) blockchains without specific hardware. Instead, they prove their honesty by depositing coins. They are then rewarded in transaction fees or similar after verifying these transactions.

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How to become a crypto validator

The process of becoming a crypto validator will vary depending on your cryptocurrency of choice, but it will typically involve setting up a validation node and issuing tokens as collateral for the right to validate transactions.

Staking with Ledger is easy. You can even run your own Ethereum validation node directly from your Ledger hardware wallet by following these simple steps:

  1. Open your The Ledger Live app.
  2. If you don’t have one already, create an Ethereum account. For the full explanation, check out How to Add an Ethereum Account to Ledger.
  3. Once you have an Ethereum account, log into it and click the Earn Rewards button.
  4. Choose your validator by selecting Ledger or Ledger by Figment in the list of validators.
  5. Choose how much crypto you want to bet. Do your own research as your funds may be locked up for some time.

And you’re ready.

You can also fund a validator via Ledger partners like Kiln using the Discover feature in the Ledger Live app. Kiln allows you to stake your ETH to fund a validator and earn a highly predictable return of up to 4.5% APR.

Join Blockchain Validator’s Rewards

Validators are an important part of proof-of-stake blockchain networks. They help ensure the security and stability of the chain and are rewarded for their work in the form of transaction fees and block rewards. If you want to become a validator, it is important to know the terms of your commitment. When you stake with Ledger, you can rest assured that you will receive competitive rewards and ownership of your coins.

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Linda Orenes-Lerma

Content creator and copywriter. Mom of a toddler who already creates and collects NFTs and then stores them on her own Ledger Nano! Ex-teacher still puts education first and writes about all things crypto because education is the key to making the room safe!

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