Blockchain: what is a validator?

How do I become a validator?

There are different ways to become a validator in a PoS system. However, for the sake of clarity, we will try to summarize this in the simplest way possible, even if the reality is a little more complex and varies according to the cryptocurrency considered.

First, you need to pledge some digital assets from the project to become a masternode. The amount to be pledged sometimes varies from a few hundred euros to several thousand. In some cases, it is even possible to create a pool to form a masternode together.

The PoS system may be of the Delegated PoS type. This means that it is possible to pledge your tokens for someone else and receive a portion of the profits generated by that person.

There are obviously as many specifics as there are different projects that use PoS, but overall these are the two most common ways to become a validator on a blockchain that needs these players to function.

Can you make a lot of money by being a validator?

Here too, it is impossible to be able to say what sums of money it is possible to pocket because it depends significantly on the projects and the starting capital that can be invested.

Thus, blockchains that require to pledge a large amount to become a validator yield the most. Unfortunately, in this case it is necessary to have the starting capital to obtain your entry ticket, to create a pool to create a masternode or to delegate your tokens to another validator.

When investments are low, the return on investment is also significantly lower. In addition, it may be mandatory to block your tokens for a long period of time, which can cause problems if the prices were to collapse as it would not be possible to resell your tokens on time in order to to limit its losses.