Description: A participating node is an essential component in blockchain networks that operate under the Proof of Stake (PoS) mechanism. These nodes are responsible for validating transactions and ensuring the integrity of the network by participating in the staking process, where users lock a certain amount of cryptocurrency as collateral to have the opportunity to be selected to validate blocks of transactions. Unlike Proof of Work (PoW), where miners compete to solve complex mathematical problems, in PoS, nodes are chosen to validate transactions based on the amount of cryptocurrency they hold and are willing to ‘stake’. This not only reduces energy consumption but also promotes greater decentralization and security within the network. Participating nodes can be operated by anyone who holds the corresponding cryptocurrency and meets the requirements set by the blockchain protocol. Their participation not only contributes to transaction validation but also allows them to earn rewards in the form of new cryptocurrencies, incentivizing their commitment to the network. In summary, participating nodes are fundamental to the efficient and secure operation of blockchains that utilize the Proof of Stake model.
History: Proof of Stake was first proposed in 2011 by cryptocurrency developers Sunny King and Scott Nadal as a more efficient alternative to Proof of Work. Over the years, several blockchain projects have adopted this model, with Ethereum being one of the most notable as it transitioned from PoW to PoS in 2022 with its update known as ‘The Merge’.
Uses: Participating nodes are primarily used in blockchain networks that implement the Proof of Stake mechanism to validate transactions and secure the network. This includes platforms like Cardano, Tezos, and Ethereum 2.0, where users can participate in staking to contribute to network security and receive rewards.
Examples: An example of a participating node is a validator in the Ethereum 2.0 network, where users can lock 32 ETH to become validators and participate in the consensus process. Another example is the node system in the Cardano network, where users can delegate their ADA to a pool of validators to participate in staking.
