Blockchain
Validator
A participant in a Proof of Stake blockchain who locks up cryptocurrency as collateral to validate transactions and create new blocks in exchange for rewards.
Last updated: January 5, 2025
What is a Validator?
A validator is a network participant in Proof of Stake (PoS) blockchains responsible for verifying transactions and proposing new blocks. Validators stake (lock up) cryptocurrency as collateral, and in return, they earn rewards for honestly maintaining the network.
How Validators Work
- Stake collateral: Lock up tokens (e.g., 32 ETH for Ethereum)
- Run validator software: Maintain online node
- Propose blocks: Selected validators create new blocks
- Attest to blocks: Confirm other validators’ blocks
- Earn rewards: Receive tokens for honest participation
Validator Requirements
Technical
- Reliable internet connection
- Sufficient hardware/storage
- 24/7 uptime
- Secure key management
Financial
- Minimum stake requirement
- Risk of slashing (penalty)
- Lock-up periods
Validator Risks
Slashing
Validators can lose part of their stake for:
- Double signing (signing two blocks at same height)
- Extended downtime
- Malicious behavior
Opportunity Cost
- Staked tokens are locked
- Can’t sell during downtime
- May miss other opportunities
Delegated Staking
If you can’t run a validator, you can:
- Delegate to existing validators
- Use exchange staking services
- Join staking pools
Exchanges like Coinbase, Kraken, and Binance offer staking services where they run validators on your behalf.
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