What Is a Blockchain Validator?

What Does a Blockchain Validator Do?

A blockchain is maintained by a distributed network of nodes rather than a central authority. In proof of stake systems, validators take on the role of verifying and finalizing activity on the network.

Their core responsibilities include:

Verifying Transactions

Validators check incoming transactions to ensure they follow the network rules. This includes confirming sufficient balances, valid signatures, and preventing double spending.

Only valid transactions are allowed to move forward.

Proposing New Blocks

Once transactions are verified, a validator groups them into a block and proposes that block to the rest of the network. This proposed block represents the next update to the blockchain ledger.

Participating in Consensus

Other validators review the proposed block. Through the consensus process, validators collectively agree on whether the block is valid and should be added permanently to the blockchain.

By sharing these responsibilities across many independent participants, the network remains decentralized and resistant to manipulation.

How Validators Are Incentivized

Validators are rewarded for doing their job correctly.

In most proof of stake networks, rewards come from:

Transaction fees paid by users
Newly issued coins created by the protocol

For example, Ethereum validators earn ETH while Solana validators earn SOL. These rewards create a financial incentive to behave honestly and keep validator infrastructure running reliably.

How Block Validation Works Step by Step

While each blockchain has its own implementation, block validation generally follows the same structure.

Staking Funds

Validators must lock up a certain amount of cryptocurrency as stake. This stake acts as economic security. If a validator behaves maliciously, part of this stake can be lost.

Selecting Transactions

Validators select pending transactions from the network mempool. These transactions are checked for validity and compliance with protocol rules.

Creating a Block

The selected transactions are assembled into a block, along with metadata required by the network.

Reaching Consensus

Other validators review the block. Through voting or attestation mechanisms, the network decides whether the block should be accepted.

Adding the Block to the Chain

Once consensus is reached, the block is added to the blockchain and becomes immutable.

Receiving Rewards

The validator that proposed the accepted block receives rewards, typically a combination of transaction fees and newly issued tokens.

Validator selection is often influenced by stake size, but randomness is added to reduce centralization and improve security.

How Blockchains Keep Validators Honest

Because validators control critical parts of the network, blockchains rely on economic and technical safeguards to prevent abuse.

Slashing Penalties

If a validator breaks protocol rules, part or all of their staked funds can be destroyed. This process is known as slashing and is one of the strongest deterrents against malicious behavior.

Reputation and Performance Tracking

Validators build a track record over time. Poor uptime or repeated errors can lead to lower rewards or removal from the active validator set.

Incentive Alignment

The reward structure is designed so that long term honest participation is more profitable than short term attacks. Cheating usually costs more than it gains.

What Is Slashing in Proof of Stake?

Slashing occurs when a validator violates network rules. Common reasons include:

Signing conflicting blocks
Extended downtime or inactivity
Actions that threaten network integrity

The severity of the penalty depends on the offense. Minor issues may result in small losses, while serious violations can lead to complete removal and loss of stake.

Slashing ensures validators remain cautious and reliable.

Validator Nodes vs Miner Nodes

Not all blockchains use validators. Some still rely on miners.

Both systems secure blockchains, but proof of stake shifts the cost from energy usage to financial risk.

Benefits of Becoming a Validator

Supporting Network Security

Validators play a direct role in keeping the blockchain trustworthy and resistant to attacks.

Reducing Centralization

Running a validator helps distribute control away from centralized entities and strengthens censorship resistance.

Earning Ongoing Rewards

Validators receive consistent rewards for reliable participation, making it attractive for long term holders with technical capability.

Limitations and Risks

High Capital Requirements

Some networks require significant staking amounts. Ethereum requires 32 ETH, which can be a major barrier for smaller participants.

Technical Responsibility

Validators must maintain uptime, secure private keys, and monitor performance. Downtime can reduce rewards or trigger penalties.

How to Become a Blockchain Validator

If you want to run a validator, the general process looks like this:

Choose a proof of stake blockchain
Acquire the required staking amount
Set up validator hardware and software
Register the validator with the network
Monitor performance and apply updates

Each network publishes detailed documentation outlining exact requirements.

Final Thoughts

Blockchain validators are a core component of proof of stake networks. They secure transactions, maintain consensus, and enable decentralized systems to function without central control.

While becoming a validator requires capital, technical knowledge, and responsibility, it also offers direct participation in blockchain infrastructure and long term economic incentives.

Understanding how validators work helps users better evaluate blockchain security, decentralization, and sustainability.

Liam Anderson

Liam is an igaming expert with over a decade of experience in cryptocurrencies and casino operations. At Bonustly.com, he provides players with honest and insightful reviews, drawing from his deep understanding of how the industry works behind the scenes. By staying on top of industry trends, he delivers up-to-date and reliable information on the ever-evolving world of Crypto Casinos.