The role of a blockchain validator is to verify transactions executed on a blockchain. Validators may also be called blockchain verifiers. They are computers that maintain the blockchain's integrity by computing the linkage from the first block to the last. Generally, a compressed version of the blockchain is dedicated for this purpose, containing every transaction. Validators for a public blockchain are operated chiefly by volunteers, who typically dedicate a computer to the process.
Once transactions are verified, they are added to the distributed ledger. In proof-of-work (PoW) systems such as Bitcoin, validators (commonly called miners) complete complex computations in order to verify transactions and earn rewards. In proof-of-stake (PoS) systems such as Avalanche, validators are eligible to receive rewards if they stake the network’s token (AVAX) and participate in the network in accordance with its rules. This mechanism helps to secure the network by enforcing users to put and keep value if they wish to participate in the consensus decision-making process.
- MiningThis is the process of earning cryptocurrency by providing the power of your computer equipment.
- HashrateHashrate (Hash per second, h/s) is an unit of mining power for earning cryptocurrency. This indicator helps to calculate how many digital coins may be earned with definite computer equipment.
- Initial Dex Offering (IDO)Initial Dex Offering (IDO) is a new way to attract investors' money to crypto projects. The main difference from ICO is that the project is listed on a decentralized exchange (DEX)
- Cryptocurrency tokenA cryptocurrency token is a token used to represent a fungible or tradeable asset or a utility that resides on its own blockchain. A token can also serve as a substitute for other things.