Backed Validator

A backed validator is a validator node in a blockchain network that has its staking collateral supported or secured by a third party.

A backed validator is a validator node in a blockchain network that has its staking collateral supported or secured by a third party. This arrangement typically involves a relationship where the validator is backed by other users or entities who delegate their tokens to the validator in exchange for a share of the rewards earned from validating transactions.

Backed validators help enhance network security by pooling resources. When multiple users delegate their tokens to a single validator, it increases the validator’s stake, which can improve their chances of being selected to validate new blocks.

This, in turn, leads to higher rewards for both the validator and the delegators. For users, delegating tokens to a backed validator often provides an opportunity to earn passive income without needing to run a validator node themselves. It also allows users to participate in the network’s security and governance indirectly.

Overall, backed validators play a crucial role in facilitating staking activities and promoting decentralization within blockchain networks.

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