Polkadot Validators, Nominators & Mobile Staking

Dec 18, 2021
3 min read

At its core, Polkadot is a proof-of-stake, scalable, interoperable, and secure network blockchain. It is an ecosystem where many blockchains (Parachains) with different characteristics become part of the Polkadot environment. Given the number of chains in the network, transactions spread over a wide area.

What is staking?

In a traditional savings account, cash is deposited into your account every month, which turns into interest on your savings as the bank is using your money. This is how the banking system works. In the same way, funds locked in or deposited by you help to validate transactions on the Polkadot. And you get DOT rewards instead of "interest".

Mobile staking avoids continuously purchasing expensive hardware and consuming energy. Polkadot brings the unique mobile staking experience to life where nominators and validators can have a user-friendly and completely secure way.to stake on mobile.

Polkadot allows you to stake in two ways. You can be a validator or a nominator.

Validators

Running a validator on a live network brings great responsibility. You are liable for your stake as well as the stake of your current nominators. Non-compliance that challenges the consensus algorithm will result in the immediate removal of some or all of the validator’s staked, on the other hand, performance gets its own reward. Phragmén's algorithm is used to select the validators. For that, you need a minimum stake, which can also come from your nominator.

Nominators

The Nominator contributes to the security bond of a validator, and their sole role is to place the risk capital and show confidence in a particular validator. In return, they may receive a proportionate increase or deposit losses. The nominator requires going through the validator's history with due diligence and endorsing validator identities under whose responsibility they are prepared to entrust their bond in the staking contract.

Collators

Collators are the parties who assist validators in order to obtain valid parachain blocks. They possess all important information and are entitled to author new blocks and execute transactions.

Rewards Distribution

An elected validator along with the nominators backing constitutes a validator pool. Suppose, a nominator is backing multiple validators and has divided its stake into s_1, s_2, …, s_k. It means it supports validator i with s_i stake. In such a case, the nominator will get rewarded in essentially the same way as there are k nominators in multiple pools.

Features

With intuitive charts and detailed history of each validator, the contribution of validators and nominators to the Polkadot is extremely unpretentious. All exemplary features lead to better analysis and research.

Staking related operations on the Polkadot wallet include reward type, bond/unbond, change controller, payout, nominate, and more.
TeX history enables you to scroll through the execution records of tasks related to staking. And the dashboard allows you to analyze past details of rewards.
Polkadot provides a list of selected validators so that you can decide which one you want to go with.
A proper voice is audible on the Polkadot to deal with the issues of network governance.

Summary

As a validator, you need to be tech-savvy and invest in a master node. On the other hand, as a nominator on the Polkadot, there would be no restriction of technical expertise. Hence, you can passively grow your asset with the Polkadot. The validators will validate the blocks and receive rewards, which will be further redistributed to you. The commission will of course depend on the validators and the tokens at stake. The result is always amazing with the tokens being idle in your wallet.

Mobile staking on the Polkadot is a relatively safe and low-risk option for generating additional passive income. But the risk remains if a validator enrolled by you becomes reckless with the protocol.