The Use of Validators and Risks Involved

The Use of Validators & Risks Involved

Dubai, UAE, 12th January 2024, The growth of the blockchain industry is inseparably linked to finding weak points and problems, rethinking them, and inventing new approaches. Therefore, the crypto community spends a lot of time examining the drawbacks associated with each component of the blockchain ecosystem to ensure progress and develop more robust and efficient solutions. One such component is validators, which are crucial for various consensus mechanisms, including proof-of-stake (PoS) and delegated proof-of-stake (DPoS).

Validators bear the responsibility of maintaining the network’s credibility and integrity by verifying transactions and maintaining the consensus. Therefore, they play a significant role in making blockchains operate smoothly and securely, directly affecting the user experience. 

PoS & DPoS 

In PoS consensus mechanisms, validators are selected based on the amount of crypto assets they have staked in the smart contract. This way, they are motivated to work ethically and diligently, ensuring that the network operates in a dependable manner. If they fail to do so, they risk having their staked assets confiscated, leading to significant financial losses. Thus, this system safeguards against malicious validators who may want to harm the network.

The DPoS mechanism is a continuation of the previous approach that introduces the concept of so-called delegates. Designed to make PoS more efficient and centralization-proof, DPoS tries to find a way to empower the token holders and simultaneously decrease the number of validators needed. Delegates are validators selected by token holders, who can both give power and take it away by voting out dishonest players. The number of validators chosen for each block is limited and may vary between consensus mechanisms. Moreover, the delegates’ position is not permanent since others can be voted in instead.

Risks Involved

The essential role of validators also presents several prominent challenges that must be thoroughly evaluated and resolved. One of the most critical ones is centralization, which occurs when a group of validators achieves considerable power in the validation process, thus gaining power over the network. While the DPoS was created to help mitigate centralization risks, the attempt was mainly unsuccessful. Since DPoS utilizes a restricted number of delegates to create new blocks, the delegation process does not exclude a lack of rotation, leading to the network’s concentration in the hands of a small group all the same. 

In addition, these select few representatives can easily collaborate and push through malicious transactions. Therefore, collusion is possible in both the case of PoS and DPoS, and even staking assets does not stop them since the potential gains may outweigh the losses incurred from penalization. Collusion can damage blockchains severely by undermining their safety and fairness. Consequently, it can sabotage user trust and support. 

The third risk is the vulnerability of validators. Hackers often choose to attack validators to disrupt consensus and exploit the network. One example is a 51% attack, which requires more than half of validators to turn malicious to take control of the network. Arguably, such an attack is even easier to carry in DPoS since there are fewer people to organize or bribe. 

Possible Solutions

Tending to said risks is crucial for maintaining blockchain’s key principles of transparency, fairness, and decentralization. By doing so, the blockchain community can ensure the technology’s robustness and uphold its foundational ideals. Centralization-wise, developers must find ways to promote decentralization by enforcing measures that encourage a diverse range of participants and regular rotation of validators. 

For example, one solution is the nominated proof-of-stake consensus mechanism (NPoS), which requires both validators (delegates) and those nominating them to stake assets. This way, both parties get punished for inadequate behavior. This approach distributes responsibility and influence across a broader scope of users.

Additionally, consensus mechanisms should include powerful penalty tools to discourage validators, delegates, and nominators from harming the network. This way, participants thinking of malicious activities must consider severe economic consequences, which may reduce their interest.

Last but not least, the network’s community involvement may play a vital role in ensuring that validators are held liable and act transparently and justly. By empowering communities to participate more in the validation process (as in the cases of DPoS and NPoS), networks can ensure more security and trust.

Conclusion

The role of validators is to ensure that the network systems are reliable and secure while maintaining trust. Yet, many associated risks make this role challenging. This is why it is crucial to prioritize meticulous design and active community participation to enhance security and mitigate any threats. 

Kinetex Network: Website | Kinetex dApp | Blog | Twitter | YouTube

Information contained on this page is provided by an independent third-party content provider. Binary News Network and this Site make no warranties or representations in connection therewith. If you are affiliated with this page and would like it removed please contact [email protected]

News

5 High-Volatility Stocks for the Market’s Next Upswing

Highland Lakes, NJ, 2nd June 2022, ZEXPRWIRE, A tactical investor would always prefer riding out a high-vol stock to cutting their losses in a...

Tunedly Announces New Project TunedCoin

Los Angeles, California, 13th September 2022, ZEXPRWIRE, Blockchain has drawn the attention of the music industry to develop new revenue models and more robust fan...

SWFL Golf Carts Allow Customers to Order a Custom Golf Cart, Making Conveyance Extremely Convenient in 2022

Bonita Springs, Florida, 7th November 2022, ZEXPRWIRE, Custom golf carts are becoming increasingly popular across the country as customers seek a more convenient and private...

Homewatch CareGivers of Stamford Now Offers Customized Care and Companionship

Stamford, Connecticut, 16th March 2023, ZEXPRWIRE, Revolutionizing the concept of in-home healthcare, Homewatch CareGivers has been providing compassionate and qualified care for more than...

21st Edition Of Digital Transformation Summit, South Africa

Physical Conference on 20th July 2023 Johannesburg, South Africa, 9th June 2023, ZEX PR WIRE, The operational landscape of businesses worldwide is undergoing a change due to...

Hydraulic Lifting Jacks by Hovair Systems Help Add An Extra Layer Of Control To Air Bearing Systems To Make Height Adjustments More Convenient and...

The material handling equipment company offers a broad range of high-end pneumatic solutions to various sectors in the USA at unbelievably cost-effective prices! Kent, WA,...

Now you san See “No Waste No Hunger” posters in New York City and London

New York, NY, Jan 16, 2023, Youssef Esawy, Lauren Sesselmann, and Gulpari Bayramova were seen in New York and London streets for ‘No Waste...

Telf AG, International Physical Commodities Trader, Celebrates 30 Years of Business

Lugano, Switzerland, 26th April 2023, ZEX PR WIRE, Telf AG, a leading physical commodities trading company, is proud to announce its 30th anniversary of providing top-notch...

iHemp Features How To Spot Fake CBD Products

High Point, NC, 4th August 2022, ZEXPRWIRE, CBD products have been booming in recent years as more and more individuals study the potential advantages...