How Do I Become a Validating Node, and What Do I Get out of It
These are promising times for the investment research sector. Independent research firms are increasing their market share at the same time blockchain technology is making its way into the mainstream.
What makes blockchain technology so promising is its decentralized nature. There is no dedicated server, but instead a decentralized peer-to-peer network. For blockchain networks, what fuels this is validating nodes that ensure transparency, security, and fairness.
This is true for the XResearch investment research ecosystem as well. So, let’s dive further into how validating nodes work, their role for XResearch, and the benefits of being one.
The rundown on nodes (and validating nodes)
First, let’s discuss what a node is in general. A node is technically a computer or other electronic device running software. On the blockchain, the importance of nodes can’t be understated.
As Lisk Academy, an education platform on blockchain technology, describes, a validating node is “a device on a blockchain network, that is, in essence, the foundation of the technology, allowing it to function and survive. Nodes are distributed across a widespread network and carry out a variety of tasks.”
Nodes maintain either a full or partial copy of the blockchain and employ their computing power to confirm transactions. They confirm transactions through a consensus protocol, which involves nodes relaying information to one another. Each cryptocurrency has its own nodes.
Now, you may be thinking that Bitcoin, along with other main cryptocurrencies, are run by miners. This is correct, but a clarification should be made: a mining node is a type of validating node. Miners running Bitcoin nodes utilize software running a complex algorithm to seal the blocks of transactions and confirm them.
The XRES token will be driven by nodes as well. XResearch will run on the Ethereum blockchain, and any node running on our distributed application can become a validating node. Validating nodes fully download every block of the transaction and check them against consensus rules.
For other coins, the type of validating node you’ll see for XRES may be called a masternode (like with Dash) or a full node (like with Bitcoin). The validating nodes on the XResearch network will be crucial to its proper function.
What do validating nodes do for XResearch?
The validating nodes (or Validators) have several functions:
- Manually approve or reject investment research from non-paying contributors.
- Screen spam content
- Review payment models of member contributors.
- Curate content from their machines and calculate market statistics (volume-weighted average prices, volumes, etc.)
- Oversee voting polls.
To carry out these functions, validating nodes will utilize the Proof-of-Stake model. What this means is that someone can validate transactions based on how many XRES tokens they hold. To be considered a validating node, a Validator must stake XXX amount of XRES tokens when verifying a transaction.
To maximize uptime of our validating nodes, we’ll implement a masternode-wide quorum. This quorum randomly selects half of the nodes on the network to ping the other nodes, guaranteeing a response. If a node is offline for more than a set number of tests, they’re disregarded from payouts until they’re able to successfully pass a set number of quorum tests again.
Without a doubt, validating nodes are a crucial element of the XResearch system. They’re responsible for enhancing the quality of content, ensuring fair payment models, overseeing the general direction of the platform (through voting), and ultimately making the network more transparent, efficient, secure, and fair.
You can be a validating node (and get paid)
Any XRES token holder can be a validator. So, the first step is to create an XRES wallet and buy tokens. The next steps are:
- Enter the member dashboard through the XRES DApp
- Click on “Become a Validating Node”
- Begin running our code on your machine
As a Validator, you’re required to have an uptime of more than 99.9% on your machine. It’s a 24/7 thing. As discussed above, tests will be run to prove uptime.
A validating node is a service provider on the XResearch platform. As such, you will be compensated for your contributions. Like with other blockchain networks, you’ll receive a fee for each transaction or activity you complete*.
*A list of approved services and pricing for validators will be published by the core XResearch team. This will occur before the third iteration of the XResearch ecosystem, which is when the XRES DApp will be released (see our roadmap for details). The DApp will be the backbone of the XResearch platform, and validators will interact with our ecosystem through it.
Become a validating node today
Gone are the days when big banks and wealthy hedge funds had exclusive control over the industry. The investment research sector is entering a new age.
Through the power of blockchain technology, XResearch can create a decentralized investment research ecosystem for investors in cryptocurrencies, ICOs, and blockchain firms — something the crypto community deserves.
But without validating nodes, our platform won’t be able to run the way it should. So, we need your help.
Click here to become a validating node.
