Validator Definition
A validator, in the context of blockchain and cryptocurrency, is a type of node in a blockchain network that validates, verifies, and processes transactions, creating new blocks in the process. Simply put, by using a specific consensus mechanism, validators maintain and secure the blockchain’s integrity.
Validator Key Points
- Validators perform the task of validating, verifying, and processing transactions in a blockchain network.
- They create new blocks through a specific consensus mechanism.
- Validators play a crucial role in maintaining and securing the integrity of a blockchain.
What is a Validator?
A validator stands as an integral part of the blockchain network structure, often constituting the fundamental part of the network’s operation. They are usually computers (nodes) participating in the network that validate and record transactions constantly, making them an essential engine of blockchain transactions.
Why are Validators Important?
Validators hold crucial significance in the functioning of blockchain technology as they not only validate and verify transactions but also aid in the creation of new blocks. By ensuring the transactions are legitimate and conforming to the network rules before endorsing and including them in new blocks, they ensure the network’s security, reducing the risk of invalid or fraudulent transactions.
Where are Validators Used?
Validators are most commonly used within blockchain networks, particularly those that use proof-of-stake (PoS) or similar consensus mechanism. They find their use in many cryptocurrencies, including Ethereum 2.0, Tezos, and Polkadot, where validators play a key role ensuring the integrity of the transactions and network.
When Do Validators Work?
Validators are constantly at work in a blockchain network, regardless of the time. Whenever a transaction is initiated, validators step into the process, validate the transaction, and include it in the next block, thereby keeping the network active and secure round the clock.
How Do Validators Work?
Validators, after receiving transaction data, validate the transactions using algorithms specific to the network’s consensus mechanism. Once a validator considers the transaction to be valid, it can then add it into a new block, which is subsequently added to the blockchain. Validators usually need to hold a certain amount of the network’s native cryptocurrency in their blockchains as a form of collateral or ‘stake’ to participate in the process.
