Validator Node Consolidation

Definition ∞ Validator node consolidation refers to the trend where a relatively small number of large entities control a significant portion of the validator nodes in a proof-of-stake blockchain network. This can occur due to economies of scale, technical requirements, or capital requirements for staking. It can impact the decentralization and security of the network.
Context ∞ News reports often raise concerns about validator node consolidation as it pertains to the decentralization and censorship resistance of proof-of-stake blockchains. While efficient, a high degree of consolidation could lead to increased central points of failure or influence. Protocols continuously seek ways to promote wider distribution of validator power.