A Bonded Validator is a participant in a blockchain network who holds a certain amount of digital currency as collateral to validate transactions and secure the network. The participant locks up a specific amount of cryptocurrency in a smart contract as a bond, or collateral, to prove their commitment and intention to honestly validate transactions.
By requiring Validators to put up a bond, the network ensures that these participants have a stake in the system and are financially incentivized to act honestly and in the best interest of the network. If a Validator attempts to act maliciously or validate false transactions, they risk losing their bonded funds.
This system of bonded validation helps to create a trustless and decentralized network where participants are economically incentivized to maintain the integrity and security of the blockchain. Bonded Validators play a crucial role in ensuring the transparency and reliability of blockchain networks.
