Sora Validator: Rubrum

What is a Validator in a PoS Network?

Validators in Proof of Stake networks are participants responsible for validating transactions and ensuring the integrity of the network. Their main function is to verify that transactions comply with the rules and are valid before being added to a block. To do this, validators must possess a certain amount of the network's cryptocurrencies, which are used as collateral and give them the right to participate in the validation process. Validators who do not reach the minimum are placed on a waiting list until they reach that minimum amount.

As you can see, there are similarities and differences with Proof of Work networks. In Proof of Work networks, miners compete to be the first to solve a very complex mathematical problem and thus earn the reward for solving that task before their competitors. In contrast, in PoS networks like Sora, validators do not compete by solving these mathematical problems; they are randomly chosen by an algorithm (the functioning of which will be explained in another entry). Only validators with the most tokens staked on their validator are eligible to participate in the selection to validate the block. As of this article, the Sora network chooses the top 69 validators with the most XOR staked to validate these blocks, and this is where nominators come into play.

I'm not clear, how important is a validator?

• Transaction Validation: Validators verify and validate transactions that occur on the network. They ensure that transactions are legitimate and comply with the protocol rules, guaranteeing the integrity of the network and preventing fraudulent activities.

• Security: Validators play a critical role in the security of the network. Their job is to prevent double spending and other attacks by verifying and securing transactions.

• Consensus: In PoS systems, validators are essential for reaching consensus on which transactions should be added to the blockchain and what should be the valid version of the chain.

• Decentralization: Having multiple validators distributed across the network promotes decentralization, meaning no single central entity has absolute control over the network. This is important to prevent the centralization of power and maintain the reliability and resilience of the network.

What is a nominator?

A nominator is a user who chooses to support or "nominate" (commonly known as "staking") a specific validator, in this case, with their XOR as collateral. The role of a nominator is to participate in the validator selection process and contribute to the security and stability of the network. Validators with the most support from nominators are among the top 69 chosen to validate blocks and receive rewards.

Nominator's Role in Sora:

• Validator Selection: Nominators choose validators they trust and consider reliable to represent their interests on the network. They can nominate multiple validators if they wish.

• Financial Support: By nominating a validator, the nominator locks a portion of their XOR as collateral. This helps support validators and demonstrates the nominator's commitment to the network.

• Distribution of Rewards: When the validator a nominator has backed is among the top 69 chosen in each Era (1 hour), they receive proportionally the same amount of rewards as the other 69 validators (approximately the same, there may be a slight difference). At the end of that era, the validator can distribute these rewards among its nominators. (In another article, factors that can vary the rewards received by nominators will be explained.)

• Incentive for Active Participation: Nominators have a financial incentive to choose responsible and honest validators, as the quality of the validator's performance directly affects their rewards. As mentioned earlier, the choice of these validators can determine the security and level of rewards received.

• Decentralization: Nominators' participation in the validator selection promotes decentralization of the network, as multiple users can nominate different validators instead of concentrating power in a few.

In summary, nominators play an essential role in PoS networks like Sora, supporting validators they trust and contributing to the security, stability, and decentralization of the network. Their active participation and choice of trusted validators are crucial for the proper functioning of the PoS system.

What kind of reward do I receive?

In most PoS networks, both validators and their nominators are rewarded with the same token from the network. In contrast, in Sora, there is a token for each function. Nominators use their XOR to nominate their favorite validators, but they receive their rewards in another token called Val (Sora Validator Token). In another article, each of these tokens will be discussed in more depth.

Rewards are distributed in each Era, meaning every 6 hours. These rewards are variable and depend on the total transaction volume of the Sora network. With a higher number of transactions, validators and their nominators receive more Val, and vice versa, with a lower number of transactions, rewards decrease.

Do I have risks if I decide to nominate a validator?

Staking or nominating a validator has some risks, although compared to other DeFi activities, it could be argued that this is one of the safest activities.

The first risk is choosing a less committed validator that does not ensure the proper functioning of the node. This is easily detectable by checking the statistics of their node, seeing if they have received any penalties (slash), if they periodically pay their nominators, and other important points, such as how they manage node fees.

If we make sure to choose a validator that meets these requirements, we shouldn't have major problems.

What should I check to choose the most suitable validator? Can I select several?

This is a somewhat personal point, but I think we would all agree if we mention the following points as priorities when choosing one or more validators:

• Identity registration: Validators with a registered identity, indicated by a green check, should inspire confidence, as they have previously undergone a verification process.

• Own stake: Sorting the list of validators by the highest own stake can give an idea of which ones are more committed to the network and the validator node.

• Slash or penalties: Check if a validator has ever received a penalty for inappropriate behavior.

• Commissions: Validators select the commission percentage they will receive. This is crucial, as higher commissions mean lower profits for nominators. Check the commission history of the validator, choose one with an acceptable level of commissions, and that these do not vary much over time. This way, you ensure that you don't have to continually check if your validator has disproportionately increased its commissions.

• Total stake: Finally, after checking the above points, it is recommended to try to choose a validator with fewer nominations and total XOR nominated by other users. This way, you help further decentralize the network, and the percentage of profit you can obtain will be higher.

Regarding whether you can nominate more than one validator at a time, the answer is yes, but with some nuances. You can nominate a minimum of 1 validator up to a maximum of 24. This way, you have fewer chances of one of your validators being outside the top 69 chosen to validate blocks. However, it will be equally important to consider all the points mentioned above, whether you nominate 1, 4, or 12; they must meet your criteria for "quality" and commitment.

With all this information, I hope you have a clearer understanding of how a PoS network works, the differences with a PoW network, and that you are encouraged to nominate your favorite validators!