ROCKETSTAKE
SOLANA VALIDATOR

PoS (Proof-of-Stake)

A Proof-of-Stake (PoS) blockchain is free of the disadvantages of the Proof-of-Work approach, and it seems to be a more fair model for reaching network consensus. The operating capabilities of PoS blockchain validators rests upon its delegators – crypto holders. Validators verify users’ transactions; if at least ⅔ of all validators confirm the correctness of a certain transaction, it is added to the new block. Validators only do productive work (transaction validation), not looking for hashes, so there is no “performance race” as there is in case of cryptocurrency mining. However, for the network to perform with high throughput, validators need powerful servers and a reliable, high-bandwidth connection.

How does PoS work?

A validator needs to provide its own tokens to the Solana network as a collateral in order to participate in the block validation process. It does not “mine” for blocks, but simply creates them and validates the blocks created by other validators. For its work, the validator is rewarded by the Solana network, and the rewards are distributed between users who delegate their SOL to the validator. In case a validator attempts to submit fraudulent information in a new block, it is punished by slashing a part of its collateral (which comes from its own funds has nothing to do with the stake delegated to the validator by users).