TECHNICAL CONCEPTS
Validator (Network Validator)
Definition
Validators are network participants who validate transactions and create new blocks in Proof of Stake blockchains. They stake tokens as collateral and earn rewards for honest behavior.
Example
Example
Ethereum 2.0 validators stake 32 ETH to participate in consensus and earn staking rewards.
Risks to Consider
Risks
- Slashing risk
- Technical requirements
- Lock-up periods
Common Questions
What is slashing in staking?
Slashing is a penalty where validators lose part of their staked tokens for malicious behavior or prolonged downtime.