A validator is someone who is responsible for verifying transactions on a blockchain. Once transactions are verified, they are added to the distributed ledger. In proof-of-work (PoW) blockchains, like bitcoin, validators solve complex computational math problems in order to win the right to verify transactions and receive rewards for the accomplished “work.” The validators of bitcoin are also called miners.
In a proof-of-stake (PoS) systems, like Electra Protocol, validators are given rewards as long as they pledge the XEP coins and correctly participate in the network. This mechanism to secure the network by imposing the need to lock up value in the network in order to participate in the consensus decisions. From those pledging participants, the protocol chooses validators to confirm blocks of transactions. The more coins a users pledges, the more likely he is to be chosen for validation. Other recommendations for the validation process:
- The recommended minimum amount for validation is 1,000,000 XEP.
- Validators must connect every 30 days at least for 12 hours continously to receive rewards.
- The longer you connect to the network, the stronger it is. It is suggested to be 24/7 connected.
- There is no unstaking period (users can use their XEP coins right away).
Participating as a blockchain validator is only possible using the XEP Desktop Wallet, as it contains a full blockchain copy. The XEP Mobile Wallet does not store a copy of the blockchain, thus it does not allow its users to participate in the blockchain validation process.
During 2022, validator nodes will speed up the process of generating transactions. However, the launch of validator nodes will not make desktop wallet validators obsolete: they will continue to exist.
WXEP tokens (which run on the Binance Smart Chain) cannot be used in the validation process on the Electra Protocol blockchain. If you own WXEP and you would like to participate in staking using Electra Protocol, you have to convert them from WXEP to XEP.