What is a Validator?
In this article, I would like to share with you my research information about validation, I hope it will be useful.
**What is a Validator?**
Validators are people who ensure the security of the network, approve transactions and create blocks in the Proof-of-Stake (PoS) consensus mechanism.
For transactions on the blockchain network to be completed and added to the chain, the transaction must be approved by the validator.
**How Does the Validator System Work?**
Validator is the person or persons that the Proof-of-Stake system randomly selects to add blocks to the blockchain. In order to be selected as a Validator and do business, it is necessary to have a certain amount of crypto assets.
These assets remain locked aside until you perform verification processes. Once the transactions are completed and verified, the locks are opened. Once this process is completed, validators earn rewards for completed transactions.
**Winning Rewards**
Validators earn rewards for completed transactions¹. Thanks to validators, blocks are added to the chain accurately and securely. If the validator cannot perform the transactions correctly, he may be penalized by the algorithms.
**How to Become a Validator on Blockchain**
Each blockchain network has its own requirements to become a Validator. The person or persons who meet the requested conditions can serve as validators in the network.
In general, in order to become a validator, one must first own the amount of crypto assets requested by the project in question. These assets must then be 'stake' in the crypto pool of that project. In addition, many blockchain networks require an advanced internet server with high transaction speed. The person or persons who meet the requirements of the project in which they want to serve as a validator begin to serve as a validator in the network and earn rewards in return.
Let's go into more detail about becoming a validator and earning rewards.
**Advantages of Being a Validator**
1. **Earning Rewards**: Validators earn rewards for validating transactions and creating blocks. These rewards are usually awarded in cryptocurrency.
2. **Contributing to the Network**: As a Validator, you play an important role in ensuring the security and stability of the blockchain network.
3. **Participating in New Technologies**: Blockchain technology is rapidly evolving and as a validator you are at the forefront of this technology.
**Disadvantages of Being a Validator**
1. **Risks**: If a validator fails to execute transactions correctly, he may lose some of the staked assets. This is called "slashing".
2. **Technical Knowledge Requirement**: Being a Validator generally requires technical knowledge and skills. Blockchain technology is complex and a technical background is often required to understand and manage this technology.
3. **Hardware and Internet Requirements**: Many blockchain networks require an advanced internet server with high transaction speed.
**Winning Rewards**
Earning rewards is a big part of validators' motivation. Rewards are usually given in cryptocurrency and often depend on the degree to which the validator contributes to the network. For example, the more transactions a validator verifies and the more blocks it creates, the more rewards it earns.
**Costs of Being a Validator**
The costs of becoming a Validator generally fall into two main categories: startup costs and operating costs.
1. **Startup Costs**:
These costs typically include staked crypto assets and necessary hardware. Staking assets usually require a certain minimum amount, and this amount is usually quite high. Additionally, a powerful computer and a fast internet connection may be required, which can be a significant startup cost.
2. **Operating Costs**:
These costs usually include electricity, internet and hardware maintenance costs. Additionally, acting as a validator often requires a constant investment of time, as it is necessary to constantly monitor the state of the network and respond quickly to potential problems.
These costs usually include electricity, internet and hardware maintenance costs. Additionally, acting as a validator often requires a constant investment of time, as it is necessary to constantly monitor the state of the network and respond quickly to potential problems.
**Winning Rewards**
Earning rewards is a big part of validators' motivation. Rewards are usually given in cryptocurrency and often depend on the degree to which the validator contributes to the network. For example, the more transactions a validator verifies and the more blocks it creates, the more rewards it earns.
**Reward Calculation**
The reward amount usually depends on a number of factors. These factors usually include:
1. **Stake Amount**: Generally, the higher the amount of assets staked, the higher the reward amount.
2. **Validation Rate**: Validators earn rewards based on the number of transactions they verify. Therefore, a validator who verifies more transactions generally earns more rewards.
3. **Network Status**: The overall status of the network can also affect the reward amount. For example, if there are a lot of transactions on the network, validators often earn more rewards.