What is the GB Validator Node? With the explosion of cryptocurrencies in 2020, more and more users are starting to see cryptocurrency as a method of financial exchange. Following the mass adoption of cryptocurrency in 2020, Genesis Block has emerged as one of the leading OTC trading desks in the world. More and more people are finally starting to see cryptocurrency as a trustworthy source of investment. One concern that many investors have when investing in cryptocurrencies is the enormous fluctuations of cryptocurrencies.
So how can investors avoid this risk? Here is where staking and GB Validator Node comes into play. Staking is an instant process that allows you to earn rewards, join in on voting, and make changes to the currency’s ecosystem! To make this more accessible to more people, Genesis Block is proud to announce its own node allowing Genesis Block clients to participate in our staking services.
One of the most crucial components of Blockchain technology is nodes. Without the addition of nodes, data on the Blockchain technology will not be accessible. In a sense, you can say that without nodes there is no Blockchain. So what exactly is a node? To put it simply, nodes are used for the storage of blocks of data. You can use nodes on any kind of device as well, namely computers, laptops, or even bigger servers. The nodes on the Blockchain use a peer-to-peer protocol to communicate with each other and constantly share information with one another to help spread information on transactions within the blocks. One of the most prominent nodes is the one that exists on the Bitcoin network.
Nodes can be both online and offline. You can use online nodes to receive, save, and broadcast all latest transactions from/to other nodes. For offline nodes, they are required to come online and download all the additional blocks that were added after it went offline. They call this process synchronizing with the blockchain. In theory, an entire network of blockchain can run on a single node, however, this would mean that everything will be stored on a single device. But this means that the entire blockchain network is vulnerable to power outages, hacks, and systematic crashes. Hence, the more nodes that are running on a blockchain, the more secure. Lastly, even if all the nodes crash as long as one node is operational, the full blockchain history can be restored.
Staking comes with various duties, so be sure to know your duties!
The duties of staking include:
Voting on proposed changes on the Serum ecosystem (ex: fee changes)
Some nodes may have the possibility of having a designation of “voting-stake” node or a “delegated-stake” node. In a voting-stake node, the stakers in the node will vote independently. Later, a majority vote of the node will be determined which will designate its behavior. In a delegated-stale, the leaders of the nodes will choose how they will vote.
At Genesis Block, we pride ourselves on providing our clients with the most reliable and professional service. We truly believe in the potential of cryptocurrencies, so we hope that we can provide cryptocurrency services to like-minded individuals who also believe in the potential of cryptocurrencies. To allow the further adoption of cryptocurrencies for more individuals, Genesis Block will provide staking services for all clients. For individuals looking to participate and earn rewards in a cryptocurrency’s ecosystem, they can do so by partaking in our GB Validation Node services. We look forward to providing everyone with the ability to benefit from the staking services.
Serum is the world’s first completely decentralized derivatives exchange with trustless cross-chain trading brought to you by Project Serum, in collaboration with a consortium of crypto trading and DeFi experts.
While you can earn rewards when staking, it isn’t risk-proof. Staking can also have risks of its own. Below are some possible risks of staking:
If validators break the rule, they can be punished by the network. This is also known as “slashing”. There are a few cases where slashing can occur, these include: liveness faults, security faults, or governance faults.
Sometimes tokens/projects may drop in value if the price of the token drops. This can be detrimental to token prices during the bear market causing the pledge earnings through staking not to be sufficient to cover the price of devaluation.
Unstable nodes may also be a risk when it comes to staking. If a node’s own technical level is not enough, it is possible for it to experience block loss and double signing. These issues may penalize the nodes and users which affect the rewards of the stakers.
Ultimately, staking is not perfect and has risks of its own. Before you decide to join us and partake in staking, make sure to understand and analyze the risks. While staking definitely has its benefits and is well suited for long-term HODLers, be sure to do your research before staking! Thanks for reading GB Validator Node, if you find thins information useful, don’t forget to subscribe to our newsletter and checkout some of our other content below: