Validators vs. Miners: verifiers of blockchain transactions
With the increase in popularity for cryptocurrency, the various consensus algorithms blockchains attain can be confusing at times, especially for new investors.
In this topic, we’ll explore the differences between validators and miners, both of whom are verifiers of blockchain transactions.
Validators are responsible for verifying the validity of transactions of Proof-of-Stake (PoS) blockchain networks, which employs the help of validators through a selection process. Every PoS tends to differentiate from another, much like how identical food menus are made at various restaurants; with different procedures.
Creating new blocks relies on the process called forging. Validators that can do so would be required to stake the tokens to receive the chance to be selected. This method is essentially to ensure honest work and prevent malicious acts.
Miners are found in Proof-of-Work (PoW) blockchain networks and are required to solve complex mathematical equations to compete for the chance to verify transactions. This is comparable to a race, wherein the winner would receive the prize of validating transactions.
The process of creating new blocks in PoW systems is called mining. Nodes are required to have hardware devices or computers with high computational power, as well as high energy consumption, to be able to compete with others for the chance to validate transactions.
What’s the difference between validators and miners?
Though both validators and miners verify transactions for their respective network variation, the methods are what separate them.
Validators are responsible for verifying transactions in Proof-of-Stake (PoS) blockchain networks by staking their tokens to receive the chance to be selected to verify transactions and receive rewards. The selection process can differ for each PoS network.
Miners are nodes that verify transactions on Proof-of-Work (PoW) blockchain networks through solving complex mathematical equations with the help of high-functioning computers with high computational power as well.
Though both have differentiating methods, both validators and miners have the same goals of verifying transactions, creating new blocks and maintaining the states of decentralization and transparency in blockchain networks.
Investors are highly advised to conduct adequate research to develop better understanding of blockchain functions, as well as to uplift the Thai crypto community.
Reference: Blockgeeks, Investopedia, Bitdegree