Blockchain networks rely on decentralization, and validator nodes are key to maintain decentralization. These nodes validate transactions, keep the network safe and secure, and ensure smooth operation. Whether participating in consensus or helping with network decisions, validator nodes are a crucial part of the system.
In this blog, we’ll explain what a validator node is and why it matters for blockchain networks. We’ll also guide you on what you need to know before running your own validator node and how to proceed if you decide to run a node.
What is a Validator node?
A validator node is a crucial component in blockchain networks that work on proof-of-stake (PoS) consensus mechanism. Unlike traditional mining approaches, where nodes compete to solve complex mathematical problems, in PoS-based networks, validator nodes are responsible for confirming transactions and adding new blocks to the blockchain based on the amount of cryptocurrency they hold and are willing to “stake” as collateral. This process helps secure the network and also rewards validators with transaction fees and newly minted coins for their participation.
Validator nodes also play an important role in maintaining the integrity and efficiency of the blockchain. They ensure that all transactions are legitimate and that the network operates smoothly by validating blocks of transactions before they are permanently added to the ledger. They stake their assets to show genuine interest in the network’s success, as their rewards depend on maintaining ithe network’s security and performance. This system encourages honest behavior because any malicious actions from a validator could result in losing their staked assets.
How does a validator node work?
When a user initiates a transaction, it enters a queue and waits there to be processed. A validator node’s job is to verify these transactions to ensure they are legitimate and follow the rules of the blockchain. This could involve checking that the transaction details are correct and that the sender has enough balance to complete the transaction. Once a validator node confirms a transaction is valid, it groups it with other transactions and forms a block. Then, they propose this block to the network for approval using a consensus algorithm. Consensus algorithm is a set of rules that all validator nodes follow to agree on the state of the blockchain. If most validators agree that the block is indeed valid, it gets added to the blockchain, and the validators receive rewards for their work. This process repeats for each and every transaction.
Benefits of running a validator node
Here are some key benefits of running a validator node:
- Financial Rewards: Validator nodes earn rewards through transaction fees and newly minted tokens for their participation in validating transactions and maintaining network security.
- Network Security: By validating transactions and participating in the consensus process, validator nodes enhance the overall security of the blockchain, making it more resilient against attacks and fraudulent activities.
- Influence on Network Governance: Validators often have a say in network decisions, including project upgrades and protocol changes, allowing them to influence the direction of the blockchain.
- Staking Incentives: Running a validator node typically requires staking a certain amount of cryptocurrency, which can increase asset value over time as the network grows.
- Contribution to Decentralization: Operating a validator node helps promote decentralization within the network.
- Community Engagement: Being a validator often involves interacting with other community members and developers, fostering collaboration and innovation within the blockchain ecosystem.
Key Considerations for Becoming a Validator
If you’re thinking about becoming a validator, here are the essential steps to follow:
- Choose a Network: Select a blockchain network you want to support, as each has its own requirements.
- Understand the Consensus Mechanism: Being a validator, it is crucial to learn how the network validates transactions and reaches consensus.
- Hardware Requirements: Ensure you have a reliable server with sufficient processing power, storage, and a stable internet connection.
- Stake Cryptocurrency: Deposit the required amount of cryptocurrency as collateral to participate in the validation process.
- Set Up Your Node: Download and install the validator software, following the network’s setup guidelines.
- Maintain Your Node: Regularly monitor your node’s performance and update the software as needed to stay operational.
How to run a Validator Node?
After going through the above explanations, if you finally decide to run your own validator node, this section will break down each step to help you ensure you have everything in place to start.
Let’s start with the prerequisites needed to run a validator node.
Prerequisites
When considering running a validator node, you’ll need a compute node (such as the ones provided by NodeShift) with the following specifications, which may vary across blockchain networks :
- CPU: 4 – 32 cores
- RAM: 16 – 64 GB
- Storage: 200 GB – 3 TB
- Internet Connection: 100 Mbps – 1 Gbps
- OS: Mostly Linux-based (Ubuntu or Debian)
Additional Considerations: Some networks may require specific hardware configurations or additional resources for optimal performance, such as dedicated machines for different functions (validator vs. full node).
Step-by-step process to run a validator node
Running a validator node is a rewarding way to contribute to a blockchain network. Here’s a detailed guide to help you through the process:
Step 1: Choose your blockchain network
Start by selecting a blockchain network that interests you. You may research options like Ethereum, Solana, or Cardano, considering factors such as community support, potential rewards, and the network’s overall stability. Each network has unique features and requirements, so ensure you understand what you’re getting into before committing.
Step 2: Understanding the consensus mechanism
Each blockchain uses a specific method to achieve consensus among the nodes of the network. The next thing you should do is to familiarize yourself with the consensus mechanism of your chosen network, whether it’s Proof of Stake (PoS), Delegated Proof of Stake (DPoS), or another model. Understanding how transactions are validated will help you operate effectively and troubleshoot any issues.
Step 3: Set up and configure the compute node
Now, most importantly, invest in the right hardware for your node as per your choosen network’s requirements. In addition to this, you’ll also need to install softwares by downloading repositories and configuring them to run and sync with the network. This can feel quite daunting at first, especially for beginners. However, we’ve several in-house guides where we have broken down the process of deploying several types of nodes on different blockchains in a simple and efficient manner using NodeShift‘s intuitive and beginner-friendly cloud dashboard.
You can check out our following tutorials to learn to set up a compute node for yourself:
Step 4: Create a validator wallet
You may set up a dedicated wallet specifically for your validator operations. This wallet will hold your staked cryptocurrency and any rewards earned. Use a trusted wallet and secure it with strong passwords for added security. Make sure to back up your wallet information securely.
Step 5: Stake cryptocurrency
Purchase the required amount of cryptocurrency needed to stake in your chosen network. You’ll need to stake these funds as collateral. The amount required varies by network, so check the specific staking requirements beforehand. Staking tokens secures your commitment and also allows you to participate in the validation process.
Step 6: Monitor and maintain your node
Regularly check your node’s performance using monitoring tools or dashboards provided by the blockchain network. Monitor metrics such as uptime, block production rates, and rewards earned. It’s essential to update your software regularly with the latest releases and security patches to ensure optimal performance and protection against vulnerabilities.
Step 7: Stay engaged with the community
Join forums, social media communities, or Discord channels related to your chosen blockchain network. Engaging with the community will keep you informed about updates, changes in protocols, or best practices for running a validator node. Networking with other validators can also provide valuable insights and support as you make progress in your journey.
Conclusion
This article has covered the key steps for becoming a validator and running a validator node. Running a node is a significant step toward contributing to the blockchain ecosystem, receiving rewards, and the opportunity to enhance network security. However, the process can be resource-intensive and complex. This is where NodeShift comes in, providing an affordable and efficient solution for deploying the necessary compute nodes. NodeShift makes it easy to set up and manage your validator node without breaking the bank. Additionally, we ensure compliance with industry standards like GDPR and ISO27001, making it a reliable choice for beginners and experienced professionals looking to optimize their blockchain operations.
