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1.1
Nodes & Validators
Interaction with the blockchain occurs via Ethereum nodes and validators. As will be discussed in later lessons, Rocket Pool makes setting up nodes and validators quite simple via its smartnode software and excellent documentation.
Ethereum Node
The task of a node is to stay synced with the other nodes' data and interact with the blockchain transactions. Simple transactions might involve buying or sending ETH from one digital address to another. More complex transactions using smart contracts could include such things as automated financial investing, on-chain gaming and production of digital assets. Running a node requires no payment to the blockchain nor does a simple node receive any rewards.
Although not technically equivalent, a node can be thought of as the database storage and blockchain client communication software running on a single computer (it is possible, however, to run multiple nodes on one computer or one node across multiple computers).
Ethereum Validator
A validator helps to actually create the new blocks of data on-chain by assembling transactions and agreeing with other validators on whether or not the transactions are legitimate. A node can activate a validator by sending 32 ETH to a smart contract called the deposit contract. This is known as staking ETH.
A single node can activate many validators as long as each is accompanied by a 32 ETH deposit. This bond is held as collateral to ensure the validator does its duty properly. A validator that attempts to write incorrect data will be caught by the other validators and have its collateral confiscated or slashed. Validators that do their jobs properly are rewarded with more ETH.
The process of validators agreeing on which transactions are allowed is called the method of consensus.
Further Ethereum information can be found at the Ethereum foundation website and in the open source specs on github.