Validator nodes

The E Money Network is secured by a Proof-Of-Stake consensus algorithm. Validators in the E Money Network can install E Money Network clients on their AWS/GCP or other cloud nodes or in-house nodes.

Key Responsibilities of Validator Nodes in E Money Network:

  • Securing the Network: Validator nodes are responsible for maintaining consensus, validating transactions, and adding new blocks to the blockchain, ensuring its integrity and security.

  • Staking: To become a validator, a node must stake a significant amount of the blockchain's native cryptocurrency. This stake serves as a financial incentive to act honestly and disincentivizes malicious behaviour.

  • Block Proposal: Validators take turns proposing new blocks containing valid transactions. The selection process often prioritises nodes with higher stakes and longer uptime.

  • Block Validation: Upon receiving a proposed block, validators verify its legitimacy, including transaction validity, signatures, and compliance with consensus rules.

  • Voting: Validators vote on the proposed blocks, either agreeing or disagreeing with their validity. A block is added to the blockchain only if a majority of validators reach consensus.

  • Rewards: Validators who participate honestly and successfully in the consensus process earn rewards in the form of transaction fees and newly minted coins, proportional to their stake.

  • Slashing: Validators who act maliciously, such as attempting to create invalid blocks or double-spend, can be penalised by having a portion of their stake slashed (forfeited). This mechanism further incentivizes honest behaviour.

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