Blockchain validators are network nodes on proof of stake (PoS) blockchains that process, validate, and add transaction blocks to a permanent blockchain ledger. It’s tempting to contrast the term validator with the miner, which serves a similar function on proof of work (PoW) blockchains. Miners, however, while doing work such as processing and adding transaction blocks, additionally perform the work in PoW blockchains that grant them the right to add blocks. On PoS blockchains, this is split into two roles: stakes and validators. Stakers vote or post stakes in support of any node becoming a validator, and validators take on the role of adding blocks to the chain.
When users initiate blockchain transactions, those transactions are queued on the network, awaiting subsequent validation. Validator nodes then batch individual transactions in a block to verify them. Every blockchain has its own set of rules related to the total number of transactions per block. When a block is completed, validators process it, adding it to the blockchain as a permanent record.
A validator may choose which transactions to pair together to create a new block. This decision is usually dictated by what transaction fees they will receive for validating the transaction, not the order of submission. For example, when sending crypto assets, a sender includes transaction fees to incentivize potential validators. Senders choose their fee amount and can even send transactions without fees.
Transactions with very low or no fees are highly likely to be ignored by validators. As a result, they may remain unconfirmed for an indefinite period. If a transaction is not added to a block for validation, it could be dropped from the network. The overall process of block validation usually differs between PoW-based blockchains, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Ethereum 2.0.
Validation on Proof of Work Blockchains
On a PoW blockchain, miners vie to process blocks by solving complex computational puzzles. The process is highly competitive, and the first validator node that successfully solves the puzzle receives a reward. Solving the computational puzzle requires significant computational and hash power and is a highly time- and energy-consuming exercise. Due to the massive number of blocks miners regularly validate on large PoW chains with the corresponding use of resources, PoW is often criticized for being harmful to the environment.
Validation on Proof of Stake Blockchains
PoS block validation solves challenges associated with slow and resource-heavy PoW validation. In PoS blockchains, block validators are usually selected based on how much value — usually in the form of cryptocurrency or other tokens — they have received in stakes towards the right to process and add a block. Stakers posting value to potential validators can be the validators themselves or other nodes. That is, a node can stake to promote their own account or any other account to become a validator.
Every PoS blockchain has its validation specifics. However, on most platforms, nodes must meet particular requirements to be selected as validators. Validator nodes on some PoS blockchains may need high-quality software or hardware specifications to process large numbers of transactions in a short time frame.
The PoS block validation process, known as staking pools, is comparable to mining pools used in PoW blockchains. Network users can lock their transaction records or cryptocurrency in the pools, allowing them to earn rewards from their block validation activity consistently.
5ireChain’s Validator Process
5ire has developed a sustainable proof of stake (SPoS), a proprietary proof of stake methodology that considers environmental, sustainable, and governance factors when choosing validators. While scalability can be a pain point for PoS networks, 5ire’s SPoS addresses the issue of scalability with multiple tandem transaction pools. Many current blockchains use single transaction pools, storing all transactions with every node. 5ireChain distributes transactions based on wallet addresses, and each transaction pool serves unique addresses. This helps us concurrently process transactions through nested chains without worrying about transactions overlapping.
The disadvantages of PoS and traditional PoS led us to think of other consensus methods. 5ireChain is the first blockchain to have sustainability embedded in the network base layers. Validators’ reputations are based on the number of sustainable and ESG practices they follow. This accounting allows for a voting protocol more complex than other consensus methods. It removes the opportunity for centralization or cartelization while also supporting our commitment to the United Nations’ sustainable development goals.
More information about 5ireChain can be found by clicking on the following links:
White paper: https://bit.ly/3Qcsmor