To understand validators, let’s first explore the concept of Proof-of-Stake (PoS). A Proof-of-Stake (PoS) system is a way for blockchains to stay secure and ensure fairness without needing a central authority. Instead of relying on energy-intensive processes like mining (used in Proof-of-Work systems), PoS allows people to lock up, or stake, their cryptocurrency to help run the network.
Think of it like running a raffle:
Participants (users) "stake" their tickets (cryptocurrency) to enter. The more tickets you stake, the higher your chance of being chosen to perform an important task, like verifying transactions and adding them to the blockchain.
In a Proof-of-Stake (PoS) system, a blockchain relies on validators to propose and verify blocks of transactions. A blockchain is like a shared digital notebook that records transactions in linked pages called blocks. Each block contains details of transactions, a unique digital fingerprint (called a hash), and a link to the previous block, ensuring the entire chain is secure and tamper-proof.
The process that ensures everyone agrees on which transactions are valid and added to the blockchain is called consensus. In the PoS model, validators—specialized computers—are chosen to propose and confirm these blocks based on how much SOL (Solana’s cryptocurrency) they or others have staked with them. This system ensures fairness, encourages active participation, and maintains the blockchain’s integrity.
Staking means delegating your SOL tokens to a validator you trust to act responsibly within the network. Think of it as voting for a reliable team to handle critical tasks. In exchange for lending your support, you earn rewards based on the amount of SOL you’ve staked and how well the validator performs. This creates a win-win situation: the validator is incentivized to maintain high performance, and you, the delegator, benefit by earning passive income while helping secure the network.
By proper definition:
A validator is a powerful computer—or more precisely, a server—that runs software designed to verify transactions and keep the blockchain running smoothly.
A node is a basic unit of the network—a computer or server connected to the blockchain that performs various tasks. Validators are a specific type of node that takes on extra responsibilities like confirming transactions and proposing new data blocks.
Staking is essential because it allows anyone to participate in the blockchain’s operation and governance without needing to run a validator themselves. It’s an accessible way to actively support the network while earning rewards from your staked tokens.
"Validators earn their rewards through commissions on staking rewards, transaction fees, and something called Maximum Extractable Value (MEV)—profits earned by optimizing transaction order in blocks."
Roles of Validators in a Blockchain
Validators are the backbone of a blockchain, especially in Proof-of-Stake (PoS) systems like Solana. They are critical in keeping the network secure, efficient, and decentralized. Here are their primary responsibilities:
Verifying Transactions: Validators check transactions to ensure they follow the network's rules. For example, they confirm that the sender has enough funds and that the transaction signature is valid.
Creating Blocks: Validators group verified transactions into blocks. Think of this as organizing receipts into a ledger for everyone to see.
Participating in Consensus: Validators work together to agree on the current state of the blockchain. This process, called consensus, ensures that all participants have the same, tamper-proof version of the blockchain.
Broadcasting Blocks: Once a block is created, validators share it with the rest of the network. Other validators double-check the block before it becomes a permanent part of the blockchain.
Earning Rewards: Validators earn rewards (often in cryptocurrency) for their work, such as creating blocks and helping secure the network. These rewards incentivize them to act honestly and efficiently.
Ensuring Decentralization: Validators help maintain the network’s decentralization by spreading control across many participants. This reduces the risk of any single entity taking over the blockchain.
Why Validators Matter
“Without validators, blockchains couldn’t function. They ensure the accuracy of transactions, prevent fraud, and keep the network running smoothly. Validators also provide the foundation for trust in a decentralized system, where no single authority is in charge.”
Choosing the Right Validator
Selecting a validator is a critical step in staking—it determines your rewards, supports the blockchain's security, and promotes decentralization. Follow these best practices to make an informed choice, and see why GREED Validator stands out as an excellent example.
Step 1: Check Validator Performance
High Uptime: Choose a validator with 100% uptime or 95% at least to ensure they’re always online and ready to process transactions. A reliable validator minimizes the risk of missed rewards.
Low Skip Rates: Validators with few skipped blocks are efficient and dependable, which directly impacts your staking rewards.
Why GREED Validator?
GREED Validator consistently maintains high uptime and processes transactions with minimal skips, ensuring maximum reliability and rewards for delegators.
Step 2: Evaluate Reputation and Transparency
Professional Presence: A good validator should have a website and a way to contact them. Avoid those that rely solely on social media handles—they’re likely hobbyists, not professionals.
Verified Identity: Stake with validators that have a verified on-chain identity, as this reduces the risk of fraud. Dishonest operators often lack transparency and may steal your rewards.
Why GREED Validator?
GREED has a well-established reputation in the Solana community, with a professional online presence and a transparent, verified identity.
Step 3: Compare Commission Rates and Real Yield
Balanced Commission Rates: Choose validators with reasonable commission rates—typically between 1% and 12%. Avoid 0% commission validators, as they may lack sustainability or use it as bait.
Real Yield Analysis: Use tools like StakeView or Validators.app to compare returns after accounting for commission fees.
Why GREED Validator?
GREED offers competitive commission rates that balance sustainability and rewards, ensuring optimal returns for stakers.
Step 4: Prioritize Decentralization
- Support Smaller Validators: Stake with validators in the lower half of the active set to avoid centralizing power among the top nodes. This strengthens the network's security and fairness.
Why GREED Validator?
GREED actively contributes to Solana's decentralization goals, promoting a healthier and more robust network.
Step 5: Check Self-Staking and Governance Participation
Skin in the Game: Validators with self-staked tokens have more to lose, ensuring they maintain high performance.
Governance Involvement: Validators that vote on network proposals show commitment to the blockchain’s long-term success.
Why GREED Validator?
GREED consistently votes on important proposals and maintains a stake in its node, demonstrating accountability and commitment to the ecosystem.
Step 6: Engage with the Community
- Community Activity: Validators who are active on platforms like Discord, Telegram, and Twitter are more likely to engage with stakers and provide transparency.
Why GREED Validator?
GREED is actively involved in the Solana community, hosting educational initiatives and maintaining open communication channels.
Bonus step: Diversify Your Stake
- Hedge Against Risks: To minimize slashing risks, stake with two or three validators. Slashing occurs when a validator goes offline or acts dishonestly, but spreading your stake reduces potential losses.
How to Stake in GREED Validator using Phantom Wallet:
Open Phantom Wallet: Log in and select your SOL balance.
Navigate to More: Click 'Stake SOL'.
Search for GREED Validator: Type 'GREED' into the search bar and select it.
Enter the Amount: Decide how much SOL you want to stake and confirm the transaction.
Wait for Activation: Your stake will activate at the start of the next epoch—about every two days."
Note: you need at least 0.0023 sol to stake
How to Stake in GREED Validator using greed.academy/stake:
Go to greed.academy/stake
Connect your wallet.
Enter your preferred amount of SOL you want to stake and confirm the transaction.
Wait for Activation: Your stake will activate at the start of the next epoch—about every two days."
Note: you need at least 1.003 sol to stake
Why Stake?
When you stake SOL, you’re not just delegating your tokens—you’re contributing to Solana’s security and decentralization. In return, you earn rewards. But why should you stake?
Earn Passive Income: Your staked SOL generates rewards.
Support Decentralization: By staking with smaller validators, you keep the network fair and decentralized.
Strengthen Security: Validators need your stake to protect the blockchain from attacks.
Participate in Governance: Some blockchains allow stakers to influence key decisions, such as protocol upgrades or network policies.
Long-Term Investment: For many, staking is a way to hold onto their tokens while earning additional rewards. It encourages a long-term commitment to the network and can be a hedge against selling during market fluctuations.
Advantages and Disadvantages of Staking
Staking is great, but it’s not without trade-offs. Let’s explore both sides.
Advantages:
Passive Income: Earn rewards without actively trading.
Decentralization: Strengthen Solana’s security and fairness.
Simple and Secure: Native staking through trusted wallets is low-risk.
Disadvantages:
Validator Risks: If a validator underperforms, rewards may decrease.
Illiquidity: Staked tokens are locked, requiring time to unstake.
Centralization Concerns: Choosing large, centralized validators can harm decentralization."
Why Staking Matters
Staking isn’t just about rewards—it’s a vote for the future of the Solana blockchain. By choosing validators like GREED, you support decentralization and network growth. Together, we can build a stronger blockchain ecosystem.
How to Get Started
Visit greed.academy/stake to stake your SOL with GREED Validator. With high performance, a solid reputation, and a commitment to the blockchain’s future, GREED is the perfect partner for your staking journey.
Make your stake count—choose GREED Validator and be part of a stronger Solana ecosystem!
For a deeper dive into validators check out Solana Labs’ Validator Documentation.