Blockchain Validator

A Blockchain Validator is someone who is responsible for verifying transactions on a blockchain. Once transactions are verified, they are added to the distributed ledger. In proof of work (PoW) systems like Bitcoin, validators, also known as miners, solve complex computational math problems in order to win the right to verify transactions and receive rewards for the "work." In proof of stake (PoS) systems like Avalanche, validators are given rewards as long as they stake the network's token (AVAX) and correctly participate in the network. This mechanism helps secure the network by imposing the need to lock up value in the network in order to participate in the consensus decisions.

What are Validators?

There are two roles within staking: Validators and Nominators. Validators are node operators who each store a copy of the blockchain and must perform certain functions to keep the system secure. On CENNZnet validator nodes are responsible for authoring new blocks and voting in the finalization protocol.

A limited number of Validator nodes are elected each staking era by an election algorithm. This algorithm will automatically select the Validators with the highest total stake to fill the available slots.

Why are validators important?

Validators are an essential part of the Proof of Stake consensus mechanism. They are essentially the moderators of the staking system and have the extremely important job of authoring new blocks on the chain. To have the most decentralised system possible, CENNZnet needs a good number of different Validator nodes that can be elected. This makes for the greatest variety of staking options for the community and also protects the system by preventing the chain from being controlled by one very wealthy individual. For example, if there are few Validators, one person with a reasonable amount of CENNZ could take all the Validator nodes, therefore taking complete control of the chain. When there are more people Validating it significantly increases the barrier to being elected.

Can anyone run a validator node?

Validator nodes can be run by anyone with hardware that meets the minimum requirements ( 250G storage 8G RAM). However, it is important to remember that if a Validator fails to uphold their responsibilities a portion of their stake will be slashed (fined). If you are unsure about taking on the technical responsibility of Validating just yet, you can get to grips with the staking process as a Nominator first.

The responsibilities of a Validator are:

  • Run a node.
  • Produce blocks. This requires your node to be online before the elected era to sync to the latest blocks, and be online 24/7 for the elected eras.

You can learn more about how to set up a Validator node on our Github page here.

What is a validator's commission rate?

To justify upkeep costs and also to gather a suitable income from supporting the chain, Validator nodes can charge a commission. This gives them a default percentage of the pooled stake reward. It is up to the individual Validator how much of a percentage they wish to take. Nominators can check commission rates before they choose a Validator. The commission rates that the validators charge are available in the list of validators in the New Stake tag of the Staking page on

What is an oversubscribed Validator?

Validators can only pay out CPAY rewards to a certain number of nominators per era. The limit is currently 128 nominators but can be modified later via governance. If more than 128 nominators nominate the same validator, it is "oversubscribed". When this happens only the top 128 staked nominators (ranked by amount staked by each nominator) are paid rewards. Other nominators will receive no rewards for that era, although their stake will still be used to calculate entry into the active validator set.

Why are most of the validator nodes run by Centrality?

To get the staking process started we needed 12 robust Validator nodes fully set up and ready to go. To bootstrap staking, Centrality has taken 9 Validator nodes. This is just a temporary situation while more people start joining as Validator nodes. In the long term, we aim to make the network as decentralised as possible, which means more independent Validators joining the network to provide a variety staking options for our Nominator community and security.

Why do the Centrality validators have 25% commission?

As mentioned above, Centrality's aim is to encourage other Validators to join the network and be elected. We do not want to be the default staking Validator node as this is not good for the decentralisation of the network. Having a very high commission on our Validator nodes provides an incentive for the community to become Validators and also makes us less competitive to Nominators.

Why are there only 12 validator nodes an era?

This is only the initial number of Validators required for a staking era. As CENNZnet grows, we will have more validators in the network. It will be up to governance to decide how many validators we want to list.

Can you run more than one Validator node?

You can run as many Validator nodes as you have the capacity to. You can set up validator nodes to run on the cloud so that you don't need to maintain the physical hardware. The CENNZnet team plans to provide scripts to automate this in the future.

A 'Validator' on a Blockchain is like a banker who verifies every incoming transaction. A transaction will only be completed on the blockchain when it has been verified by the validator. Validators are assigned the duty to verify transactions to whether or not they are legal and accurate.

Every POS blockchain network is constituted of more than a single validator based upon the system requirements. Whenever transactions are broadcasted, all network validators or some validate the transactions to be legitimate and then the validated transactions are placed into the blockchain.

WORKING Validators in interoperable networks, like in every other blockchain network, are responsible for maintaining system efficiency, participating in voting and form new blocks in the blockchain. Blocks are selected by the validators to be added to the chain by multi-stage voting. A validator wins the right to add a block only when their block has been voted by 2/3rd or more of all validators in case of Cosmos Network. The figure below depicts the Cosmos ecosystem.

Validator's role in the network is to run a full-node and participate in the network's consensus by broadcasting votes. Validators get revenues for committing new blocks. In case of Cosmos Network, validator should have bonded token to be incentivised validator. They are required to participate in the system's governance by voting for proposals. They are weighted as per their owned stakes.

Becoming a Validator

Anyone and everyone can join a public blockchain and become a validator for the network's consensus, while individuals need permissions in private and consortium blockchains. The most commonly trusted and implemented consensus is PoS (Proof of Stake), where it randomly selects validators for block creation and validation and ensures that validators can not predict their turn. The nodes selected as validators/ block producers show commitment and interest in advancing the blockchain that they are a part of by staking their security deposit/coins. ``````````````` The selection of validators is linear to the weight of validator's deposit. When the network finds the selected validator as offline, it transfers the validating opportunity to the next randomly selected node unless an online validator is found to create the block. The validator only gets rewarded if their produced block is added to the chain. Every other validator whose block had not been selected loses the security deposit equal to the block reward. This ensures to resolve the "Nothing-at-stake" problem.

In order to become a validator in the network, one must send a 'declare candidacy' transaction with details including; 1) Validator's PubKey (account to be used for validation), 2) Name and Description (optional), 3) Initial commission rate (for block provision), 4) Max commission (maximum rate), 5) Commission change rate (maximum daily increase), 6) Minimum self-bond amount (minimum bonded atoms), 7) Initial self-bond amount (initial self-bond atoms).

When an interested candidate fulfils all these requirements and signals themselves, the top candidates (in a pre-defined number set by the system) with the most stakes are chosen as validators. If over time, any validators' stakes fall below the top number of candidates, the validator loses its rights. The number of maximum validators will be increased over time in Cosmos network as follows:

Proposer Selection Process:

After being voted, the selected validator to propose the next block is called a 'Proposer'. These are chosen deterministically where the chances of being chosen are equal to the stakes owned by the validator. This means that the more stakes a validator owns, the more it has chances of being selected as a proposer.

Overall, the validators on the network will have two major responsibilities:

Constantly run the correct version of the software using their servers and keeping their private keys secure. Keep active participation in the system's governance by voting on every proposal. In case, if a validator is caught being dishonest in his/her decisions, inactive or double signing, then that validator will be punished. The most common types of punishments are:

  • Slashing: It is the process in which a certain percentage of the validator's shares are wasted and his/her shares decrease.
  • **Losing validating powers: In this case, validators are restricted to enjoy their allotted powers and lose certain rights like decision making.
  • Losing reputation: The overall reputation of the validator in the network is damaged and his/her chances of being voted 2/3rd times are reduced. When a validator loses reputation, his/her chances of being chosen as a proposer are reduced to null.
  • Losing voting rights: Whenever a validator misbehaves the system moderators may take away their voting rights for a certain period of time or permanently based upon the severity of the misconduct.
  • Inability to propose blocks: The validator might be punished such that he/she loses the right to govern the system by voting on proposals.
  • Permanent blocking: In the worst-case scenarios where the validator may be miscommunication and be involved in fraudulent activities (double signing), the validator can be permanently blocked from accessing the network while losing all his stakes at the same time.

Dobber - A Valuable Validator

RNS Solutions Singapore is running validators for multiple blockchains. It will run a node in the Cosmos Network to ensure the system's governance, maintaining the system's efficiency, voting for proposals and proposing blocks in the chain.


Visit our media section for a complete overview.


Blockchain Validator
Blockchain Validators
Crypto Validator
Crypto Validators


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This page was last changed on 2021-09-21.