Finance glossary
Validator (Crypto)
Definition
A participant who verifies transactions on a proof-of-stake blockchain in exchange for rewards.
A Validator (Crypto) locks up, or stakes, a quantity of a proof-of-stake blockchain's native token as collateral and, in return, gets randomly selected to verify transactions and add new blocks, earning rewards for correct work. Validators who act dishonestly or go offline can have part of their staked tokens slashed as a penalty.
In a sentence
Validator (Crypto) is a paid job for a computer: she staked enough tokens to qualify, then earned a steady yield for keeping her node online.
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