What is Nominated Proof-of-Stake (NPoS) in Polkadot?
Nominated Proof-of-Stake (NPoS) is a consensus mechanism designed by Polkadot to secure its blockchain network efficiently and decentralize power among validators and nominators. It ensures network security by allowing DOT token holders to participate as either validators or nominators.
- Validators: Validators run nodes to produce blocks, validate transactions, and ensure consensus. They are chosen based on the total DOT tokens staked, including their own and those nominated to them.
- Nominators: Nominators support validators by staking their DOT tokens. By selecting trustworthy validators, they play a crucial role in the network’s security and share the rewards earned by the validators they support.
The NPoS system incentivizes honesty and reliability by slashing staked tokens from validators and nominators involved in malicious behavior. Its design encourages decentralization by capping the stake a single validator can attract, ensuring fair distribution of rewards.
Polkadot’s NPoS is a scalable and secure system, making it a cornerstone of its multi-chain ecosystem.
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