Let’s delve into how validators work in Cosmos, specifically focusing on the process of validating transactions.
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Transaction Reception: Validators continually receive a stream of transactions from users of the network. These are instructions like token transfers, smart contract interactions, or other blockchain-specific operations.
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Transaction Verification: Each validator checks the transactions for validity. This involves confirming that:
- The transaction syntax is correct.
- The sender has enough balance for the transaction and the required fees.
- The transaction is properly signed, proving it came from the rightful owner of the funds.
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Proposing Blocks (Tendermint Consensus): In Cosmos, validators use the Tendermint consensus algorithm. Periodically, one validator is chosen (based on their stake and other factors) to propose a block. This block includes a set of the verified transactions.
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Voting on Blocks: After a block is proposed, other validators must vote on it. They check the block’s validity and integrity. If they agree it’s valid, they vote to approve it. This voting process occurs in several rounds to ensure consensus is reached.
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Committing Blocks: Once enough validators (more than two-thirds in Cosmos) have voted in favor of a block, it is considered committed and gets added to the blockchain. This finalization of a block ensures that transactions are recorded and irreversible.
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Updating Account Balances: With the block added, the network updates the account balances and states as per the transactions in that block.
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Earning Rewards: Validators earn rewards for proposing and voting on blocks. These rewards come from transaction fees and, in some blockchains, block rewards.
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Maintaining Network Integrity: Validators are expected to be online and active. If they go offline too often or try to cheat (like double signing a block), they can be penalized, often by losing a portion of their staked tokens.
Imagine validators in Cosmos like a team of auditors in a bank. They receive transaction requests (checks), verify their authenticity, collectively agree on batches of transactions (block of checks), and then update the accounts accordingly. Their diligence ensures the bank runs smoothly and securely.