The Blockchain is a digital ledger, decentralized and distributed over a network, structured as a chain of registers (blocks) responsible for storing data (transactions of value and entire digital applications). You can add new blocks of information, but you cannot edit or remove blocks previously added to the chain. The cryptography and consensus protocols of a blockchain guarantee security and immutability, the result is an open, neutral, reliable and secure system, where the trust of the system does not depend on any individual or institution.
Cosmos is an ecosystem of blockchains that can scale and interoperate with each other. Before Cosmos, blockchains were siloed and unable to communicate with each other. They were hard to build and could only handle a small amount of transactions per second. Cosmos solves these problems with a new technical vision.
A validator is a crucial part of the Proof of Stake (PoS) consensus mechanism, whose responsibility is to verify blocks to earn rewards. Each blockchain has building blocks called nodes, which are responsible for data retention. However, this data must first be validated or verified on the blockchain network – this is where the validator comes into play. Just as a banker is responsible for verifying a transaction before it is processed, a validator verifies every incoming transaction. A transaction can be completed and its record can only be added to the blockchain once its accuracy and legal authenticity have been verified: these operations are performed by the validators. In the Proof-of-Stake mechanism, the validator determines whether or not a transaction complies with the rules that consider it valid. The whole process makes a blockchain network safe and transparent.
Blockchains that use staking, are operated by a set of actors called Validators. The status of a Validator is established based on its amount of voting power. Voting power is obtained when stake your assets on a validator, and in this case you are delegating your voting power, based on the amount of assets you hold.
Staking is the process of locking a digital asset to provide economic security to a public blockchain. Precisely for this, you are rewarded and you have the right to vote on proposals and make decisions about the future of the network. When you stake, the rewards start to be generated immediately and you can claim your accumulated rewards at any time.
When you stake your assets, you are blocking them for an indefinite period of time. You will not be able to transfer or sell your assets but at any time you can activate an unlocking process (undelegating) which can last from 15 to 21 days based on the parameters of the blockchain that you operate.
Among the numerous elements that form the foundations and the functioning of a cryptocurrency, one of the main ones is certainly the governance mode. Governance is the ability for Cryptocurrency stakers to vote on proposals that affect the evolution of the network. Stakers can vote proposals, with a voting power that is proportional to their amount of staked assets.
In the staking process, rewards are generated proportional to the amount of your assets staked. Of these rewards, a percentage goes to the validator you have chosen to delegate your assets. This percentage is called commission and is set by the validator operator.
There is a risk that delegated assets will be cut if the validator misbehaves:
Downtime: If the validator is offline for too long, a slashing of 1% will occur based on the parameters of the blockchain being operated. Example: If a validator has a voting power of 100,000 tokens, they are cut by 1% for inactivity equal to 1000 tokens. When the validator is back signing then the voting power will be at 99,000 tokens. If you have 10,000 tokens (10%) staked, you will have a 100 token cut from your proxy and you will have 9,900 tokens.
Double-Sign: Slashing by 5% can occur if the validator signs two different blocks at the same height (double-sign). This fault is harder to anticipate, resulting from bad operation practices or outright malicious intent from the validator operator.
A cryptocurrency wallet is a tool that you can use to interact with a blockchain. Can send and receive cryptocurrencies via transactions on the blockchain. Each wallet contains a public key and a private key:
Public Key: It is the public address you use to send and receive assets. For example: “bitsong123456…” agoric123456…”
Private Key: The private key allows you to access your cryptocurrencies no matter which wallet you use. So even if your computer or smartphone gets compromised, you can still access your funds from another device – as long as you have the matching private key (or seed phrase).
NOTE: NEVER GIVE ANYONE YOUR PRIVATE KEYS. IT’S ACCESS TO YOUR FUNDS, KEEP IN A SAFE PLACE!
Is a test blockchain that works to execute blockchain projects before they are ready and released. In a Testnet environment, worthless tokens are used to run the protocols, and multiple tests and can be run to verify their performance. Visit our Testnet Validators.
Is the main blockchain of a coin or project and is the phase that comes after the testnet. Mainnets can be used to send and receive any transactions in the form of cryptocurrency or non-fungible tokens (NFTs). Visit our Mainnet Validators.
The material on this site is provided for information purposes only and does not represent investment advice or any other form of advice regarding investment services. The information provided does not represent a solicitation to buy or sell financial instruments or financial products or digital assets. Cryptocurrencies are subject to strong fluctuations in value. A decline in value or a complete loss is possible at any time. Furthermore, the loss of your private access keys can also lead to a complete loss.