A validator component is a system component (a smart contract component that is native to the Radix Protocol and cannot be modified by anyone) that is used exclusively for staking to validators.
Each validator node-runner, when they register their node as a validator, will automatically create a validator component on the Radix Network. When a user wishes to stake to a validator, they send their XRD to the relevant validator component and receive Liquid Stake Units (LSUs) in return.
Further reading:
- Radix Tech Docs
- How does staking work on Radix?
- What are Components, Blueprints, and the Blueprint Catalog?
- Start Here! Radix Staking Introduction
- What’s the difference between user components and system components on Babylon?