Validator
Definition
A node operator on a proof-of-stake blockchain who locks up cryptocurrency as collateral to verify transactions, propose blocks, and earn staking rewards for honest participation.
Validators are the backbone of proof-of-stake blockchains like Ethereum (post-Merge), Solana, Cardano, and Polkadot. They replace miners from proof-of-work systems, using staked cryptocurrency instead of computing power to secure the network.
On Ethereum, becoming a validator requires staking 32 ETH (roughly $80,000-$120,000 depending on price). The validator runs software that proposes and attests to blocks. Honest validators earn rewards (currently ~3-5% APR), while dishonest or unreliable validators face slashing — permanent loss of a portion of their staked ETH.
The validator selection process varies by blockchain but generally incorporates randomness weighted by stake size. Ethereum uses committees of validators who attest to blocks, with a randomly selected proposer. This randomness prevents any single validator from dominating block production.
Running a validator requires: the minimum stake, reliable hardware (modest — a regular computer with good internet works), 24/7 uptime (offline validators miss rewards and may face penalties), and technical knowledge to maintain the node software. Liquid staking protocols (Lido, Rocket Pool) allow users to participate in validation rewards without running infrastructure.
The economics of validation include: block rewards (new token issuance), transaction fees (tips from users), and MEV (maximum extractable value — profits from transaction ordering). Net yield after hardware and electricity costs typically ranges from 3-8% depending on the blockchain and network conditions.
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Frequently Asked Questions
Can I run an Ethereum validator at home?
Yes, with 32 ETH and modest hardware (4-core CPU, 16GB RAM, 2TB SSD, stable internet). The main challenge is maintaining 24/7 uptime. Tools like DAppNode simplify setup. If you don't have 32 ETH or don't want to run hardware, liquid staking protocols offer validator rewards without the infrastructure.
What is slashing?
Slashing is a penalty where a validator loses a portion of their staked ETH for malicious behavior (like signing contradictory blocks) or severe negligence. Minor downtime results in small inactivity penalties, not slashing. Slashing is rare and primarily targets intentionally malicious validators.