Steemit Crypto Academy Contest / S12W5 - Understanding Slashing In Crypto
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Hello, my good Steemit friends! I am happy to have you here reading through my post, in which I talked about "Understanding Slashing In Crypto" which is organized in the SteemitCryptoAcademy.
-Use your own words to define what is slashing in Crypto. And do all blockchains apply slashing?
In my own words "slashing in crypto" simply means a way of punishing validators who have a bad intention of corrupting a blockchain system. Slashing happens in a proof of stake consensus (POS) mechanism. In a blockchain network, it is not all validators that work for the growth of the network slashing is a way of punishing any validators that are caught working against the growths of a blockchain network.
The purpose of slashing in crypto is to discourage validators from working against the growth of a blockchain network which is also a way of ensuring that validators maintain their integrity and trust. To this, in a blockchain network, if a validator is placed under slashed, some part of what the validator has a stake in the form of collateral will not be given to the validators, which means the validator will lose his/her stake.
It is not all blockchains that apply to slash to their network. However, it is a blockchain that is a Proof-of-Stake consensus mechanism that applies to slash. This is the type of blockchain network that has rules and regulations governing the network which determine how we the users can interact with the blockchain.
To this as a validator of proof-of-stake consensus who want to secure the network you will have to stake some portion of your holding should in case you go against the terms and conditions of the blockchain.
Explain how slashing protects the blockchain, taking an example of a blockchain that applies it.
Based on the above question slashing plays a crucial role in protecting the blockchain from getting corrupted. However, below is how slashing helps protect the blockchain.
- Slashing protects the blockchain against bringing;
Blockchain can use slashing an increase the cosy of offenders who tend to collect bribes in the blockchain. Now when the cost of punishing someone for committing an offense is high people will be avoiding the act of committing offense.
Having said that above Byzantine fault tolerance (BFT) which is a proof of stake blockchain is one of the blockchain networks that has applied slashing. What BFT does in its network is to set a 1/3 as the total stake in the blockchain in case there is a double signing into the chain. With this validator will be discouraged from collecting bribe because any validator that collect bribe his or her Stake (S) will be slashed.
- Slashing protects the blockchain when there is no transfer of token toxicity
Proof-of-stake is usually about staking of cryptocurrency to earn rewards. To this when there is a token that is not affected by security or it is non-transferable the base protocol will help share security with the token. Eigenlayer is a good example of blockchain protocols that allow re-staking which permit different validator to validate the network.
As a blockchain user, how can you avoid slashing?
Well, I am not a validator yet, but as a blockchain user who knows the consequences of slashing, I can avoid slashing by using the use of identical keys in different places. To this, I will ensure that whenever there is downtime in the network, I should be patient enough to wait for the network to restore instead of trying to do some setup.
Also, I can avoid slashing by not collecting bribes just to disclose useful information on the blockchain. I will avoid the use of multiple accounts as a blockchain user. Finally, this is for me to stay away from any fraudulent activities as a blockchain user.
Does the Steem blockchain apply this kind of punishment? If not, do you think slashing could be applicable in the first place (technically) and will it be beneficial?
No steem blockchain doesn't apply this kind of punishment called slashing. Steem blockchain makes use of delegated proof of state (DPOS) which allows everyone to vote for witnesses that would be producing blocks and checking price feed. Well, I think slashing could be applicable in the first place, (technically) to stop those who had previously tried to spoil the Steemit platform and its blockchain network.
What are the advantages and limitations of slashing?
Some of the disadvantages and limitations of slashing are
Slashing led to financial losses. It can lead to speaker funds which affect stakes by reducing their rewards.
it damages the validator's reputation: As a validator or staker slashing can bring down your reputation once you have faced a penalty.
It restricts someone from participating in a network. Sometimes it can block you from participating in a network.
It causes volatility in the market. Once slashing happens the price of the native token of the blockchain will be affected.
@kuzyboy, @yakspeace, @chiomzy810, and @dave-hanny, you are all invited to take part in the contest.
Thank you, friend!
I'm @steem.history, who is steem witness.
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please click it!
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when I read up to here.
I think this is a good idea, but after I look at the benefits and limitations.
That's a bad idea, it would be better not to use cuts in steem
Indeed, slashing in the crypto world has real consequences, cauzing financial losses nd affecting stakeholders' rewards through mechanisms like speaker funds.
Thanks.
you have successfully explained meaning of slashing that what is this as well as you have also explain that it is not necessary for all blockchain to use this mechanism for giving punishment to their validators but mostly the blockchains that works on proof of stake mechanism use this mechanism
You have given a practical example of a blockchain that is using slashing mechanism I don't know complete explanation that how this blockchain use slashing mechanism but unfortunately you have also not going to its depth it would be more good if you explain it in a clear way but you have explained advantages and limitations of slashing
Overall you put your good efforts in your participation I wish you good luck and success in this engagement challenge in which you try to answer all the question in a best way but you need to go into more depth in some parts over all I wish you success
Slashing word almost everyone knows as you have also explain it in a clear way that it is a way of giving punishment to validators who are doing anything against the blockchain or breaking any rules so in this way of punishment they have to stay away from there completely after the implementation of slashing as well as you have also explain some of the main purpose of slashing that for which purpose it could be used and I totally agree with you that is a way of encouragement and discouragement both in two ways.
Hello friend, a really nice post I really commend your work, you are really good at what you do and I would love to see more from you.
Yea as a result from slashing a witness, can part of crypto asset staked into the he Blockchain
Users and validators need to be educated about slashing conditions and penalties because a lack of awareness or misunderstanding of the rules can lead to unintentional misbehavior.
Defines el slashing como un castigo para los actores malintencionados contra el crecimiento de la red, seguidamente aclara que el propósito del recorte es garantizar que los validadores se mantengan íntegros y generen confianza. La validación de las transacciones es fundamental en cualquier blockchain pero sobre todos a los basados en PoS donde los intereses de la inversión deben dar sus frutos de manera honesta pues de lo contrario las deficiencias se harán notar en el desempeño de la red en general haciendo que sea menos estable, segura y fiable.
El slashing es la medida de protección para mejorar la seguridad, estabilidad y fiabilidad de la red, aunque los infractores lo verán como penalizaciones excesivas.
Te deseo mucha suerte y éxitos.
There is no harm in trying, hence I hope you don't give up in your attempt due to the grading.
You've most definitely explained the slashing mechanism according to your understanding and perspective of it. Every society has laws that guides them and a fine or penalty attached to this laws, with Slashing also acting as a penalty to validators and users who fall short of the rules. All the best dear friend.