Stake Pool Operator

Definition ∞ A stake pool operator is an individual or entity responsible for running and maintaining a stake pool within a Proof-of-Stake blockchain network. These operators manage the technical infrastructure necessary to validate transactions and produce new blocks on behalf of other token holders who delegate their stake to the pool. They typically earn a portion of the rewards generated by the pool for their services. These operators play a crucial role in the decentralization and security of Proof-of-Stake networks.
Context ∞ Stake pool operators are central to the functioning and decentralization of many Proof-of-Stake blockchains. News often discusses the importance of a diverse set of operators to prevent centralization of staking power, which could pose security risks. The performance, reliability, and fee structures of stake pools are frequently debated topics among token holders. Choosing a reliable stake pool operator is a key decision for participants looking to earn staking rewards while supporting network security.