Why Do Blockchains Need Validators?
Validators play an important role in maintaining consensus and security on blockchains. They ensure that transactions are verified, and all records are stored, strung, and arranged in blocks on the blockchain.
TL;DR
- Validators help blockchains maintain security and validity by verifying transactions and keeping records of all activities on the network
- The importance of validators has increased as more blockchains are built with the Proof-of-Stake consensus algorithm
- Becoming a validator usually requires a user to stake their tokens in order to earn the right to participate in network security
Maintaining Network Operations
Most public blockchains exist as decentralized networks where no organization or single entity has sole control over network operations. In this instance, validators are needed to keep the entire system decentralized and secure.
Validators help to keep blockchains secure by verifying transactions to ensure that no fraudulent actor is able to manipulate activities on the network. They check transaction detail and authorize the confirmation of transactions, voting on the validity of each block before adding them to the existing chain on the network.
Validator and Proof-of-Stake Algorithm
The proof-of-stake consensus algorithm has been the reason for the increase in the demand for blockchain validators. Just as miners are important to the Proof-of-Work algorithm, its lack of eco-friendliness has made new blockchains embrace PoS to limit its environmental impact.
As an alternative, Proof-of-Stake uses validators instead of miners and replaces computing powers (power farms) with staking. As a result, the excess consumption of power is removed and decentralization is further permeated into blockchains are individual users with enough tokens to stake can now become validators.
Becoming a Validator
As is now the norm on most blockchains, becoming a validator has a set of laid down procedures that each user needs to follow. First, the blockchain sets the minimum acceptable number of tokens to be stake before a user is allowed to join the validator pool. This staked token is then used as collateral to ensure that the validator complies with the network procedures.
Any validator that goes against the set network rule loses all of or a portion of their staked tokens; this is the established punitive measure on most proof-of-stake blockchains. However, compliant validators earn rewards in the form of native tokens. The PoS algorithm also paves the way for new validators to join a network as it removes all barriers to network participation.
Conclusion
Overall, validators have grown in responsibility and their importance cannot be overstated on a blockchain network.
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