How it works
Their responsibilities can include proposing blocks, attesting to blocks and following slashing rules. Some users run validators directly while others delegate stake.
What to check
Check the hardware and capital requirements, validator-set concentration and whether a network relies on a small number of infrastructure providers.
- Measure effective concentration
- Check client diversity
- Understand validator incentives
Limits and risks
A technically large validator set can still be economically concentrated. Outages, correlated software bugs or governance power can matter even when many validators exist.
Primary sources
Bitcoin Developer Reference↗Ethereum developer documentation↗FATF: Virtual Assets↗General information only. Investment products can lose value, and terms, fees and regulation can change.