authenticator meaning

What Is a Validator?

A validator is a gatekeeper in Proof of Stake (PoS) networks, responsible for proposing new blocks and attesting to blocks proposed by other validators. By staking tokens as collateral, validators participate in network consensus, earning rewards for honest participation and facing penalties for malicious or negligent behavior.

Staking refers to locking up tokens as collateral to demonstrate a commitment to maintaining the network’s integrity. Attestation means agreeing that a proposed block is valid. Compared to regular users, validators take on more demanding operational and security responsibilities.

What Do Validators Do in Blockchain?

The core duties of a validator are twofold: block proposal and block attestation. Proposing a block is akin to having a turn to speak, while attesting is like raising a hand to endorse someone else's statement during a meeting.

Since Ethereum's transition to Proof of Stake, validators are randomly selected to propose new blocks. Other validators attest to the proposed block, and if a majority reach consensus, the block is finalized. This process ensures orderly network progression and protects against malicious activity.

How Do Validators Work?

Validator operations are inseparable from nodes and consensus. A node is any computer running blockchain software, tasked with receiving transactions, assembling blocks, and synchronizing with other nodes. Consensus mechanisms are the agreed-upon rules that determine which blocks are accepted.

Typical workflow includes:

• Validators stake tokens via an on-chain contract or module to qualify for participation.
• The network selects a proposer through randomization or round-robin; the proposer packages transactions into a new block.
• Other validators attest to the block (submit approvals), and once a threshold is met, the block is confirmed.
• Rewards are distributed based on uptime, correct behavior, and network parameters; violations trigger penalties or slashing.

What Is the Relationship Between Validators and Staking?

Validators rely on staking as collateral—much like a security deposit—to ensure that misbehavior carries financial consequences and boosts network security. If a validator double-signs, remains offline for extended periods, or participates in attacks, their collateral can be slashed.

Regular users often lack the resources to run their own validator but can delegate tokens to a validator. Delegation is similar to handing over your voting power and stake weight, allowing the validator to participate on your behalf and share rewards with you. Validators typically charge a commission as an operational fee.

How Are Validator Rewards Generated?

Validator rewards come mainly from block proposal rewards and attestation rewards. Block proposal rewards are earned when proposing new blocks; attestation rewards are gained by successfully attesting to others’ blocks.

Reward amounts depend on several factors:

• Total staked amount: As network-wide staking increases, individual validator yields may decrease—this design improves security and controls inflation.
• Uptime and performance: Validators who maintain high uptime and submit correct attestations earn more rewards, while poor performance reduces earnings or incurs penalties.
• Commission rate: Validators deduct commissions from delegated rewards, affecting your net returns. As of 2026, typical Cosmos-based chains have commissions ranging from 5% to 20%, with variations by chain and period.

Platforms display estimated yields and commission rates. On Gate's “Staking & Lock-Up” page, users can delegate tokens to supported validators and view relevant parameters and projected earnings—refer to live data for specifics.

What Risks Do Validators Face?

Validators encounter both operational and economic risks. Operational risks include node outages, network failures, or software bugs leading to downtime or incorrect signing. Economic risks encompass slashing, reward volatility, or token price declines.

Slashing is an on-chain penalty for rule violations that may deduct part or all of the staked collateral. Extended offline periods can reduce rewards or trigger mild slashing. When participating via third-party platforms, also consider custodial risk and smart contract vulnerabilities.

Protecting your funds is crucial. Before participating:

• Assess the validator’s uptime and historical performance.
• Review commission rates and penalty policies.
• Check platform custody and risk management mechanisms. When delegating on Gate, always read product documentation, risk disclosures, and lock-up terms.

How to Participate as a Validator?

There are two approaches: running your own validator or delegating to an existing validator.

Step 1 (Run Your Own Validator): Prepare hardware and networking—secure servers, redundant internet connections, and monitoring systems for high uptime.

Step 2 (Run Your Own Validator): Install and configure node software; sync blockchain data per official guides; set up key management and backup strategies.

Step 3 (Run Your Own Validator): Complete staking and registration; test signing and attestation functions; establish operational procedures and emergency plans.

Step 1 (Delegate to Validator): Select reputable validators by checking uptime, commission rates, community feedback, and penalty history.

Step 2 (Delegate to Validator): Delegate via on-chain wallets or platforms. On Gate’s “Staking & Lock-Up,” choose your asset and validator, confirm lock-up duration, and reward distribution method.

Step 3 (Delegate to Validator): Monitor rewards, commission changes, and network notifications; adjust delegation or holdings as needed.

How Are Validators Different From Miners?

Validators differ from miners in both consensus mechanism and cost structure. Miners participate in Proof of Work (PoW), competing with computational power and electricity consumption to produce blocks; validators operate in Proof of Stake by staking tokens and maintaining reliable operations.

In terms of costs, miners invest heavily in hardware and energy; validators focus on staking capital and operational stability. For security models, miners rely on majority hash power; validators depend on majority staked assets.

What Are the Criteria for Choosing a Validator?

Consider these four factors:

• Uptime & reliability: Consistently online with minimal penalties for downtime.
• Commission & transparency: Clearly disclosed fees and change policies.
• Security & governance: Key isolation, backups, emergency procedures; active participation in community governance and user communications.
• Decentralization contribution: Geographical distribution and independence to prevent centralization and strengthen network resilience.

Use blockchain explorers and platform data for balanced assessment. On Gate, refer to performance history and documentation for guidance.

What Are the Trends for Validators?

Key trends worth noting:

• MEV & fair ordering: MEV refers to extra revenue from transaction ordering. The ecosystem is exploring auction models and fair ordering solutions to reduce negative impacts and improve transparency.
• Distributed Validator Technology (DVT): Splits validator duties among multiple nodes with collective signing, minimizing single points of failure and boosting uptime.
• Restaking & shared security: Restaking means extending the same staking capacity across multiple services, increasing security and revenue sources. By 2026, related tools will mature but may introduce compounded risks—careful evaluation is required.
• Modular & cross-chain validation: Validators may expand roles into data availability layers and cross-chain verification for enhanced network collaboration.

Validator Summary & Next Steps

Validators are central to Proof of Stake networks—maintaining security through staking and compliant operations while earning rewards for proposing and attesting blocks. Regular users can share in rewards through delegation without running their own validator but should fully understand commission rates, uptime requirements, and slashing risks. Before participating, define your goals and risk tolerance, then choose your path: either invest in hardware and operations to become a validator or delegate via platforms like Gate while monitoring performance. Use “rewards, risks, transparency, and decentralization” as your four criteria for making robust decisions in this evolving ecosystem.

FAQ

What hardware configuration does a validator need?

Validators require stable internet connectivity and sufficient computing power; exact specifications vary by blockchain network. For Ethereum, at least 32GB RAM, 1TB SSD storage, and 1Gbps bandwidth are recommended. Both personal computers and cloud servers can be used—the key is maintaining 24/7 uptime to avoid penalties for going offline.

How much does it cost to become a validator?

Costs consist of staking amount plus operational expenses. On Ethereum, each validator must stake 32 ETH as collateral; additional costs include server electricity, internet fees, etc. Participating via platforms like Gate using liquid staking can lower entry barriers without needing the full stake upfront.

What happens if a validator goes offline?

Long-term offline status results in network penalties—staked assets may be deducted (slashed). Short-term outages mean missed rewards only; excessive slashing eventually leads to forced removal from the network. This incentivizes validators to stay online for network stability.

Do validator rewards need to be taxed?

Tax treatment varies by jurisdiction—staking income may be subject to different rules worldwide. Consult local tax professionals about filing requirements. Platforms like Gate usually provide earning records to help with tax reporting.

How do validators differ from node operators?

Node operators only maintain network data integrity; validators additionally verify transactions and produce blocks, requiring staked assets as collateral. Put simply: all validators are node operators but not all node operators are validators. The validator role is more central—with higher rewards but also higher risk.