Rhonin | Flipside Analyst

    Rhonin

    Joined Oct 16, 2021
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    13Upvotes
    Who Validates the Validators

    Who Validates the Validators

    Dec 12, 2021 - What is a validator? The Terra Core is powered by the Tendermint consensus. Validators run full nodes, participate in consensus by broadcasting votes, commit new blocks to the blockchain, and participate in governance of the blockchain. Validators are able to cast votes on behalf of their delegators. A validator's voting power is weighted according to their total stake What is staking? When Luna holders delegate their Luna to a validator, they are staking. Staking increases a validator's weight, which helps them, and in return delegators get rewarded. what makes an excellent validator? The Columbus-5 Mainnet is a public Proof of Stake (PoS) blockchain. This means a validator's weight (total stake) is determined by the amount of staking tokens (Luna) they delegate to themselves plus the Luna bonded to them by external delegators. The weight of a validator determines whether or not they are an active validator and how frequently they can propose a block. Validators with a higher weight will propose more blocks, and in turn make more revenue. Delegators are Luna holders who want to receive staking rewards without the responsibility of running a validator. Through Terra Station, a user can delegate Luna to a validator and in exchange receive a part of a validator's revenue. Staking keeps the network decentralized. In Proof of Stake systems like Terra, staking is an important part to keep the network decentralized and stable. Staking keeps the stakers incentivized by giving out rewards as Luna or any other stable coins. Staking also reduces the circulating supply as it’s considered locked, driving the price up. The biggest benefit is those airdrops. Staking in Terra Station enlist the stakers in the future airdrops. A plethora of apps are in development under the Terra ecosystem and you are eligible for the airdrops by those apps in development by staking. So we check the amount of voting power in the validators and find out which one has more power.

    Rhonin