Validators and Staking

BTCS’s core operations include the management of cloud-based validator nodes on Proof-of-stake (PoS) based blockchain networks. These nodes participate in network consensus by providing transaction validation (“attestation”) and block proposal services as a Validator. BTCS earns native token rewards by running validators and staking our proof-of-stake crypto assets.

The majority of BTCS's crypto assets consist of Ether (ETH), the native token of the Ethereum blockchain, which is primarily used to support and operate validator nodes on the Ethereum network. In addition to our primary Ethereum focus, BTCS operates validator nodes and stakes digital assets on a variety of other blockchain networks.

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Why does BTCS stake and operate validators?

Running validators and staking our crypto assets offers a consistent and reliable revenue stream
BTCS retains full ownership and management of its crypto assets, ensuring security and transparency without relying on third-party custodial solutions.
BTCS’s cost-effective operations combine low energy usage with cloud-based infrastructure, avoiding the energy intensity and depreciation costs of traditional PoW mining
By supporting a variety of networks, we strengthen blockchain ecosystems and contribute to the growth and resilience of the overall industry.

What is a Validator?

A Validator is a participant in a blockchain network that plays a critical role in maintaining the network's integrity and security. Validator nodes are essential components of Proof-of-Stake and Delegated-Proof-of-Stake blockchain networks and are responsible for:

Validate Transactions

Ensuring all transactions added to a blockchain are accurate and legitimate.

Propose Blocks

Creating new blocks to add to a blockchain ledger.

Securing the Network

Contributing to network stability and preventing malicious activities.

How does Staking work?

Staking is a critical process that enables participation in a blockchain network’s consensus mechanism, ensuring its security, integrity, and functionality. Staking can be achieved in two primary ways: 1) by operating a validator node directly, or 2) by delegating crypto assets to an existing node.

Validator Staked Assets

Validators bond their crypto assets to the blockchain network, allowing their nodes to validate transactions and propose blocks, supporting their role in consensus activities.

Earning Rewards

Blockchain networks reward validators for successfully validating transactions and proposing new blocks by distributing native tokens. This provides an incentive for validators.

Delegated Staked Assets

On certain dPoS networks, crypto assets can be delegated to a validator node and bonded to support the validator’s role in blockchain consensus.

Earning Rewards

Rewards are distributed directly by the blockchain network to wallets holding delegated assets, with amounts determined proportionally to the value of staked assets as an incentive.