Nominators Definition
Nominators in the context of blockchain and cryptocurrency are individuals or entities that select validators to nominate in a Proof-of-Stake (PoS) blockchain network. They play a crucial role in securing the network by backing trustworthy validators with their own stakes. If the validators they nominate act honestly and perform their duties correctly, nominators share in the rewards. However, if the validators act maliciously, the nominators’ stakes can also be slashed.
Nominators Key Points
- Nominators select validators in a Proof-of-Stake blockchain network.
- They secure the network by backing trustworthy validators with their own stakes.
- Nominators share in the rewards if their nominated validators perform their duties correctly.
- If the nominated validators act dishonestly, the stakes of the nominators can be slashed.
What are Nominators?
Nominators are a critical component of the PoS consensus mechanism, which is used by many blockchain networks, including Polkadot and Kusama. In this system, validators are chosen to create new blocks and validate transactions. However, to ensure that these validators act honestly, they are required to put up a stake of their own tokens. Nominators support the system by selecting and backing these validators with their own stakes.
Why are Nominators important?
Nominators play a vital role in maintaining the security and integrity of the PoS blockchain network. By selecting and backing validators, they help ensure that the validators have a significant stake in the network, which discourages dishonest behavior. If a validator they have nominated acts dishonestly, the nominator’s stake can be slashed, providing a strong incentive for nominators to choose their validators carefully.
Where do Nominators operate?
Nominators operate within PoS blockchain networks. These can be public, decentralized networks like Polkadot and Kusama, or private, permissioned networks.
When do Nominators nominate validators?
The timing of when nominators nominate validators can vary depending on the specific rules of the PoS blockchain network. In some networks, nominators may be able to nominate validators at any time, while in others, there may be specific nomination periods.
Who can be a Nominator?
In most PoS blockchain networks, any participant who holds the network’s tokens can become a nominator. However, there may be minimum stake requirements, and nominators may need to have a good understanding of the network and its validators to make informed decisions.
How do Nominators nominate validators?
The process for nominating validators can vary depending on the specific PoS blockchain network. Generally, nominators will need to hold a certain amount of the network’s tokens, which they can then stake to back a validator. The nominator may need to lock up their tokens for a certain period of time, and if the validator they have backed acts dishonestly, the nominator’s stake may be slashed.
