A Journey Toward Decentralization: Validator Nodes and Delegator Nodes

The Path to Decentralization

The BNB Smart Chain (BSC) aims to deliver a censorship-resistant, decentralized blockchain that offers advanced financial infrastructure with innovative features and low operating costs. The network prioritizes the development of decentralized finance (DeFi) infrastructure, making financial services accessible to users worldwide with computers, mobile devices, and internet connectivity.

In the initial phases, the development team provided funding and support to developers, helping solve financial inclusion challenges. After several months of development, the project released its whitepaper and then launched the mainnet, inviting the community to operate validator nodes to drive ecosystem growth. As the network expanded, the ecosystem became more autonomous and decentralized, strengthening its resilience to malicious attacks and centralized control.

BSC’s codebase is entirely open-source and verifiable—independent researchers and project stakeholders can review the code directly on Github. Open-source code ensures protection without reliance on a central authority and empowers the entire community to participate in code review and security evaluation. To realize the benefits of decentralization and technical advancement, BSC employs a novel Proof of Staked Authority (PoSA) consensus mechanism. PoSA combines Proof of Authority (PoA) and Delegated Proof of Stake (DPoS), relying on 21 community validator nodes to enable shorter block times and lower transaction fees.

The PoSA consensus model features block production by a limited set of validator nodes, supported by delegators. Validator nodes sequentially produce blocks using the PoA mechanism, similar to Ethereum’s Clique protocol. Validators are re-elected daily based on staking governance. This model delivers robust rewards to validators, token holders, developers, and users. Its high performance and scalability open the door to greater innovation.

Validator Nodes and Delegator Nodes Explained

BSC validator nodes are individuals or organizations that run hardware nodes and maintain network operations by processing transaction and block signatures. There are two types of validator nodes. Candidate validator nodes must meet minimum hardware requirements, operate a local BSC full node, and self-hold at least 10,000 BNB. Elected validator nodes are the 21 candidate nodes with the highest total BNB delegation, recalculated every 24 hours. Unlike other PoS/DPoS chains, BSC validator nodes earn block rewards in BNB, a deflationary token whose supply continues to decrease.

BSC also supports delegator nodes. Users can become delegators by staking BNB via their wallet to support their chosen validator nodes, helping those validators reach the minimum required stake for election. In return, validator nodes earn transaction fees while delegator nodes receive BNB staking rewards, distributed proportionally based on the total earnings of the validator they support. All rewards are paid in BNB.

Why Become a BSC Validator or Delegator?

Becoming a BSC validator or delegator offers substantial benefits. Elected validator nodes can realize high profit potential by earning transaction fees and delegator fees. Delegators enjoy attractive annual yields and, once their selected validator is elected, receive regular staking rewards. For reference, historical data shows validator nodes earn average daily rewards in BNB, while delegator nodes’ annual yields fluctuate with the BNB price.

Yet, the value of participating in the BSC network goes well beyond economic returns. Validators and delegators directly enhance the stability, functionality, and performance of the entire BSC ecosystem. DeFi project development on BSC is thriving, offering users the chance to engage with rapidly evolving markets. Validator and delegator nodes are the backbone of the BSC DeFi ecosystem, propelling its growth. Their support empowers people in developing regions and unbanked areas with access to borderless, unrestricted crypto-financial services.

How to Become a BSC Validator Node

Validator nodes are essential to the BSC ecosystem—the network cannot function without them. By supporting network operations and transaction processing, validators earn substantial rewards. High-performing validators, such as those representing active communities, attract support from many delegators and accumulate significant BNB stakes. These nodes leverage initial investments from DeFi platforms and delegator support to quickly amass substantial rewards.

Every elected validator node has three main responsibilities. Technically, much like miners in Proof of Work blockchains, BSC validators supply the necessary hardware, technical expertise, and computational resources to sustain network operations. Beyond technology, a diverse validator set—including individuals, communities, and organizations—enhances community diversity, network security, stability, and decentralization. From a growth perspective, validators nurture innovation and internal growth, strengthen community governance, and increase both BNB value and the value of their own holdings.

Diverse, community-driven validator nodes bring major advantages to the BSC community. The more candidate validators, the higher the degree of decentralization, with more distributed computing power, stronger security, and improved stability. A larger pool of candidates creates a better user experience and fuels the advancement of BSC and the broader DeFi sector.

To become a candidate validator, you must: meet hardware requirements, run a local BSC full node, and hold at least 10,000 BNB. Once eligible, a validator enters the candidate list and can invite the community’s delegators to stake BNB. Because validator rewards are high, competition is fierce. Historical statistics show that top validators each hold tens of thousands of BNB, and a seat as an elected validator requires millions of BNB in total voting power.

How to Become a BSC Delegator Node

BNB holders and Smart Chain users can become delegators on the BSC network, supporting their preferred validator nodes to earn rewards and participate in governance voting through their delegated validator. Delegators increase validator capacity by staking BNB, furthering network decentralization and growth. Delegators pay validators a portion of their BNB staking rewards as a fee.

Delegators select validator nodes to support from a list of candidates that meet specific criteria (such as history of storage reliability) and earn mining rewards by staking BNB. Delegation is completed using wallet tools. By delegating to a specific validator and factoring in the current BNB price, users can earn annual yields. On peak yield days, annual rates can rise significantly, allowing both node operators and delegators to maximize profits.

Redelegation and Undelegation

In addition to delegating BNB, users can also choose to redelegate or undelegate. Both actions can be performed once every seven days.

Redelegation means transferring part of the BNB already delegated to validator A over to validator B, which allows users to support multiple validators at once. After submitting a redelegation transaction, if any of the supported validators are elected, users earn the corresponding rewards.

Undelegation is the process of withdrawing a previous delegation from a validator node. By submitting an undelegation transaction, users can release part of their previously delegated BNB.

Validator Node Governance

Compared with blockchains commonly used in other DeFi infrastructure, BSC offers several distinct advantages. To remain competitive, it must stay compatible with, and upgradable to, future consensus protocols. For this reason, BSC manages staking operations on-chain. The network includes a BSC-specific staking module, receives BNB staking tokens, and calculates the node set with the highest total tokens. Each day at a set time (UTC), BSC broadcasts a verifiable “validator node set” cross-chain message, updating the list of 21 elected validators based on total staked amounts.

Validator nodes participate in governance over key network functions such as miner fee adjustments, system parameter changes, and blockchain protocol upgrades.

Building the Future of DeFi Together

Creating a stronger future means empowering and mobilizing all participants—validators, delegators, users, developers, and everyone involved in this financial revolution. Leading projects on BSC attract new users, boost trading volumes, generate direct rewards for validators, and drive more BNB staking. As validator nodes grow in number and performance, network efficiency improves, fueling project development, attracting more users, and reinforcing a healthy ecosystem cycle.

In the beginning, attracting promising projects was only an aspiration. Today, BSC’s ecosystem features over 100 projects spanning wallets, infrastructure, credit and lending, gaming, and more. The ever-changing environment encourages validator nodes to continually improve and welcomes new entrants. These validators consistently increase their BNB holdings, invest significant capital and resources, and have learned to harness the power of the community. Everyone can participate and help shape the future of DeFi. BNB holders can earn returns from validators, large or institutional holders can become validators themselves—supporting network growth while earning income. Developers can launch new projects, driving further expansion in the sector.

Conclusion

BSC’s journey toward decentralization charts a new course for modern financial infrastructure. Through the PoSA consensus mechanism and collaboration between validator and delegator nodes, the network has built an open, transparent, and efficient decentralized finance ecosystem. Whether you participate as a validator, delegator, developer, or user, everyone contributes to the future of decentralized finance. This ecosystem delivers economic incentives, but more importantly, it establishes the foundation for global financial inclusion—giving everyone the opportunity to join and benefit from the financial revolution.

FAQ

What Is a BSC Node and What Is Its Role?

A BSC node is any device participating in the BNB Smart Chain network. Its main functions are transaction validation, blockchain data storage, and enhancing network security. Nodes are essential for stable network operations.

How Do You Build and Operate a BSC Full Node?

Download the BSC client, set the network parameters, and run the node. Technical expertise is required.

What Hardware and Network Specs Are Needed for Running a BSC Node?

Operating a BSC node requires several terabytes of storage, an NVMe SSD, high-performance I/O, a stable high-speed network (10 Mbps or more recommended), and at least 16 GB of RAM.

What Are the Costs and Potential Earnings of Running a BSC Node?

Operating costs include hardware, networking, and maintenance. Main revenue comes from MEV arbitrage and node leasing. Actual earnings must cover operational expenses.

What’s the Difference Between a BSC Validator Node and a Full Node?

BSC validator nodes store the full blockchain and participate in validation and consensus. Full nodes provide more detailed data and support archive functions. Validator nodes are more lightweight and can run on devices with limited resources.

How Do You Choose and Use a BSC Public RPC Node?

Choose a reliable RPC provider, set the endpoint URL in your wallet or DApp, and verify response speed and uptime. Always use trusted services.

What Security Concerns Should You Consider When Running a BSC Node?

Use strong passwords and multi-factor authentication. Keep your software updated, prevent data leaks, ensure network security, and configure your firewall properly.