Is Validation a new Mining?

Ethereum PoS switching caused global changes in the crypto world. There are not only miners but validators as well. What is the difference?

Shortly speaking, miners are cryptocurrency mining equipment operators who solve machine-generated cryptographic algorithms to write the next block on a blockchain and get block rewards in the process and part of the transaction fees charged by blockchain users. It helps to protect PoW-based networks by ensuring that only one version of the “reality” exists and achieving consensus on a distributed network. However, this consensus process is costly and wasteful of energy resources, it is widely accepted as the most stable and efficient consensus protocol.

In comparison, PoS “validators” assumes the role of “miners.” Still, they are only required to hold and “stake” a certain amount of PoS digital tokens or coins to participate in the validation process instead of running crypto mining machines. It reduces the cost of setting up the mining infrastructure, including the associated risk of mining operations — fluctuating energy costs, shifting regulatory regulations, and fading and tearing mining equipment. Furthermore, it ensures that anyone interested in staking can do so immediately as long as they meet the minimum required tokens and have these tokens “Staked.”

One of the main advantages of validating over mining is cost. They are lower in the validating part than in the mining section. This is because the user runs the node and takes part in checking the authenticity of transactions.

The complexity of mining, especially solving arithmetic equations, requires large resource allocation. Thus, mining uses large amounts of power and high-processor computers. 

However, to become a validator, you need to freeze a certain amount of money (it depends on the crypto you choose) which can be destroyed if the validator behaves dishonestly or lazily. 

Rewarding is also different in mining and validation. Validators’ work ends only after the mining process ends. The income earned in the mining process comes in the form of coins released. A miner will only receive the rewards after the mining process ends and his block has been chosen and added to the chain.

Nevertheless, there are many differences, and the processes complement each other. Both processes are essential to secure the blockchain and release new coins. A crypto beginner interested in mining or validating should be ready for the entire process.