Steemit Crypto Academy Contest / S12W5 - Understanding Slashing In Crypto
Slashing in Crypto word is just like a punishment that imposed on different validators in different types of blockchains. Validators are those that are essential for maintaining security of blockchain and they also have responsibilities for transaction validation and making show that everything is running smoothly at blockchain or not.
By an imaginary example if I give you the definition of slashing then it would be very easy to understand for all of you so imagine that you are a part of a blockchain which is based on proof of stake so here validated have to take certain amount of their cryptocurrency to be a validator because that staking would act as their honesty to become a validator.
By validators there could be harm to blockchain if validators are cheating the system of blockchain and are going mistakes in blockchain and for this prevention so slashing is an important step that comes into play and it is like a virtual slap for validators for their misbehave or making error.
Blockchain protocol could slash a portion of skating of validators if they consider their misbehave or there rules breaking is happening. So in this way validator can lose part of his cryptocurrency which he staked for becoming a validator. In other words it is a kind of discouragement of validators due to their act and making them accountable due to their actions
All blockchains apply slashing or not?
Answer is no because according to my research blockchain apply slashing it is true but not every blockchain apply slashing. Slashing is more common in the blockchains which work on proof of stake because in these block chains there validators are choosed on the basis of their staking cryptocurrency. Because in this type of blockchains slashing becomes more effective way for ensuring that validators wouldn't try to manipulate the system of blockchain in anyway.
Blockchains which work on proof of work mechanism like Bitcoin don't use flashing mostly because validators are known by the name miners that are responsible for solving complex mathematical puzzles for validating transactions and they are being rewarded in new cryptocurrency rather than a stake that could be slashed.
It is true that slashing protects a blockchain but here I am relating these words with an example which makes you more clear what I want to say and how slashing protects a blockchain.
Ethereum blockchain as an example
In Ethereum blockchain for securing Network and validation of transactions validators play a key role and in this blockchain validators are asked for looking up some amount of Ether(it is a native cryptocurrency of this blockchain) as staking. This is a stake that act as collateral and responsible for demonstrating commitment of their validators for the maintenance of integrity of blockchain.
If we suppose that there is any validator at Ethereum blockchain who is trying to manipulate the system or decide to miss behave with the blockchain in anyway which is detrimental for the security of blockchain so for the prevention of that misbehave or that manipulation when a validator would be find out to act in this way then his stake could be slashed. In this way some of the Ether which he locked up would be slashed as a penalty or punishment for his actions.
In Ethereum blockchain slashing is a method which is designed to make the blockchain more transparent so that everyone would remain honest with blockchain and don't try to manipulate the system and it realise upon a combination of on chain and off change data for the detection and giving punishment of validator who do such kind of misconduct so in this way validators are also required to submit their words on proposed blocks at regular basis and these votes are also recorded at blockchain.
If there is any validator who is found to have voted in inconsistent way with majority of other validators then it could be a sign which can show his misbehave with blockchain. So in this way it could trigger a slashing condition and could also reduce the validator stake in this way as well as one thing is also important that severity of penalty or slashing what the depends variety of manipulation or offensive behaviour.
Let's take an example that if there is a validator who is voting for two conflicting blocks at same height then it could be a leading cause 4th lesson of his take because double vote can cause confusion and could also lead to a fork in blockchain and could be detrimental for integrity of blockchain.
Slashing mechanism in Ethereum blockchain is automated and objective that minimize the need for intervention of human. It realise upon predefined rules that are implemented in blockchain later according to the requirement and these rules in shows are consistency and transparency in the implementation of slashing punishments.
Yes as a blockchain user there can be very simple steps that I can follow for avoid slashing.
1. Choose a Reliable Validator:
Choosing a validator who is reliable could be a great way for avoiding slashing at a blockchain because when you participate in proof of stake blockchain then it becomes mandatory to select trust were the validator so you should see for our validator who have reputation and good record. For choosing a reliable validator it is important to make a proper Research and consider performances of validator.
2. Stay Informed to latest news:
It is important to stay up to date about latest news of blockchain network in which you are participating because it would let you know about some of the compulsory rules and guidelines set by blockchain as well as any upgrades that might affect your staking process. If you would stay in formed then it would be in your favors that you would follow correct procedure and avoid any actions that could be the leading cause for slashing.
3. Follow Network Guidelines:
If you want to avoid slashing then it is very important that you should follow the rules or guidelines of the network because each blockchain has its own rules that all validators and stakers should follow. These guidelines would include minimum stake participating in any consensus process as well as method of proper validation and signing of transaction.
4. Maintain a Stable Network Connection:
There should be a stable network connection for participation in any proof of stake blockchain. Gift shorting that you have stable internet connection and your hardware and softwares are also up to date because sudden loss of connection can lead to miss validations which could be detrimental for you.
5. Regularly Monitor and Maintain Your Validator:
Active monitoring of validator is very important because regular checking of performance of validator includes the verification of validator that is it online and is it participating in consensus processes with regularity or not as well as you can quickly identify if there is any issue or anything which can leads to slashing conditions.
No, Steem is a blockchain in which there is no implementation of slashing as a form of punishment because I have already discussed it in very detail about slashing that it is a penalty mechanism that is used in blockchains which use proof of stake mechanism for discouraging any misconduct by validators and it involves reduction of a portion of stake of validator.
Steem use different consensus mechanism which is delegated proof of stake that's why slashing is not applicable at this blockchain because in delegated the proof of stake there are token holders that are responsible for voting set of trusted witnesses that are responsible for transactions validations and production of blocks at blockchain so if there is any witness which is behaving maliciously or manipulating the system then they would be voted out by community and would be replaced by a more suitable and reliable witness. So in this way security of blockchain maintains without slashing as a penalty.
Slashing could be more effective in some other blockchain networks and it is not necessary that it would be suitable for all situations so it is very important to consider about specific characteristics and goals that each blockchain have when you have to determine prons and cons of slashing. So in the case of Steem Blockchain delegated proof of state mechanism has been proved to be very successful for the maintenance of integrity of blockchain without slashing.
There are some of the advantages of absence of slashing in steem blockchain I am discussing below.
- It is beneficial if slashing is absent in steem blockchain in a way that it eliminates the risk of losing of state tokens due to any reason.
- It is beneficial in a way that it provides peace of mind for all users when they know that there are no penalties for their honest mistakes so in this way it also simplifies the experience of user as there is no need to constant worry about any slashing condition.
If there is no slashing present then it doesn't mean that any misbehave of a user doesn't matter or a user is not accountable for any misconduct.Steem community monitors the network in an active way through voting and reputation system. Witnesses are expected to do their actions in their best way for interests of blockchain but they could be voted out if they fail to do so. Users at this blockchain can also downvote or flag any content or anything which is not in favour of blockchain or which is detrimental for blockchain integrity.
Following are the advantages and disadvantages of slashing I am explaining below.
Advantages of Slashing:
1. Security and Deterrence:
Slashing is beneficial because it acts for security of blockchain as well as act as strong deterrent against the misconduct by validators. There is a threat to all validators that they might lose their stake as a result of any manipulating act that's why validators try to act with full of their honesty. So in this way it lowers the risk of manipulation and enhance the security of blockchain.
2. Network Stability:
Slashing is a great way for the maintenance of network stability by giving punishment to validators who try to do any fraudulent activities at blockchain so by imposing financial consequences slashing is a great way for the discouragement of validators that engage in such type of activities.
3. Economic Incentives:
Slashing is a great way for aligning economic incentive with good behaviour so validators that act with full of their honesty are also rewarded with opportunity so that they may earn blocked rewards and fees for transactions so discouragement of unreliable validators cause encouragement of validators for their actions in more reliable way.
4. Governance and Accountability:
Slashing is like a governance tool for the enforcement of regulations and rules in a blockchains so validators are also accountable for their actions what they do and danger of slashing gives in shorty that they have to adhere to the guidelines that are already established by blockchain so in this way it promotes honesty and transparency in blockchain.
Limitations of Slashing:
1. Complexity and Technical Challenges:
When you have to implement our slashing mechanism then there is a requirement of careful design and consideration so it involves some complex technical implementations which includes detection and malicious behaviour proving as well as determination of the appropriate amount of slashing so there could be some technical challenges that can make slashing difficult in terms of its implement.
2. False Positives and Collateral Damage:
There are different risks of false positive in the mechanism of slashing because where we give punishment to validators according to their actions which appears malicious but actually they might be the result of some of the technical issues so falls positive could be something which leads to and just punishment and harm the reputations of some good validators that are not intentionally acting in a malicious way.
3. Centralization Concerns:
Validators which have large amount of staking obviously have more influence and have more control over the blockchain so slashing also leads to some of the concerns related to centralization which is another disadvantage or limitation in the implementation of slashing mechanism.
As closely related as the PoS and DPoS consensus mechanisms, the Steem blockchain which falls to the DPoS does not implement the Slashing mechanism as in the DPoS users only get to vote witnesses while still holding onto their stakes.
You've presented a wonderful entry, congratulations for that.
Blockchain that works on proof of stake mechanism mostly used slashing for giving punishment to its validators if they are doing some malicious behaviour but steem is working on delegated proof of stake and yes these both terms are similar in words but one word which is delegated make it different from each other. I totally agree with you
I am happy if you are really saying that I presented a wonderful post and thanks for congratulation me I also visiting your entry with was also commendable
Hello @khursheedanwar.
You have written a detailed post about slashing. I enjoyed reading your post. And the 5 ways you have written to avoid slashing are good and they should be followed to avoid slashing.
Have a Good Day!
First of all I want to say thanks to you that you take your time and consider it important to comment on my post and I am happy that you really understand and like 5 ways that I have explained for avoidance the slashing
I have also visited your entry which was quiet informative for me I wish you success in that again and have a good day
You're absolutely correct! Blockchains that operate on a Proof-of-Work mechanism, such as Bitcoin, don't typically use slashing.
You have explained every question in a clear as well as in a proper manner 😉
Thanks!
Bitcoin is a blockchain in which there are miners and that's why this is a blockchain that works on proof of work mechanism not works on proof of stake mechanism that's why it doesn't use slashing mechanism I totally agree with you
I am happy that you like my entry and every question you understand in a clear way I wish you good luck and success in your engagement challenge and in your participation also
Thankyou so much for commenting on my post ⭐
Assalamualaikum dear!
Apny bohat achy andaz me slashing k concept ko explore kia ha. Me apki research ki jitni tarif kru utni hi kam ha. Slashing mechanism just proof-of-stake based blockchains py applicable ha or is ka sab sy bada faida ye ha k validators honestly apna kam krty hain or blockchain ki security increase krny me apna kirdar ada krty hain.
Apni post ko achy andaz me share krny ka shukria or me apki kamyabi ka duago hun.
Wasalam Bhai
Mujhe Apni post per aapka comment dekh Kar bahut jyada Dil Hi Khushi hui hai aur main aapki baat se ittefaq karta Hoon aur meri efforts ko consider Kiya aur uski tarif ki iske alava main aapki baton se agree hun ke slashing ek aisa mechanism hai jo sirf aur sirf ek proof of stake base Blockchain per kam karta hai aur iska ek fayda yah hai ki sab validators imandari ke sath kam karte Hain
Meri post per comment karne ka बहुत-बहुत shukriya maine bhi aapki post ko visit kiya hai aur mujhe bhi aapki post bahut jyada information lagi hai aur bahut jyada maloomaati hai aur mujhe ummid hai ki aap content share karte rahenge bus achcha kam karte Rahe
Indeed, your research is accurate. Slashing mechanisms vary among blockchains, with a higher prevalence in PoS systms where validators are selected based on their staked cryptocurrency.
First of all I want to say thanks to you that you give your precious time to my entry and comment on it as well as I agree with you that my research is accurate about which I am happy that you are appreciating it as well as I again make it clear to you that proof of stake base blockchains are applicable for using slashing mechanism and others are not most probably I wish you success in this engagement challenge and soon I would be there to your entry for visiting
Knowing that my stake will be slashed if I misbehave will help me to be very careful and avoid being careless. Validators in a proof of stake Blockchain must really act with honesty and dedication knowing what lies ahead.
You have explained what slashi7.eans in a simple terms which is easy to understand. I agree that steem doesn't make use of slashing but delegated proof of stake and the witnesses are punished by being voted out. But if slashing is to be used, I believe it they will know that they will loose something and apply more caution. Don't you think so?
Thank you for your detailed entry
slashing is good in a way that blockchains that are using this mechanism their validators are much careful because they know that if they would try to manipulate blockchain or do any malicious behaviour than there stake tokens would be cancel out which would be very detrimental for them financially so it is a way to have more honest validators
Yes definitely I extremely agree with your question that if slashing would be in use then validators would take more precautionary measures so that they may not lose anything overall I really like your comprehensive comment at my entry I wish you success in your participation which I have already visited and it was really really informative and good
Aapane slashing word ko bahut acchi Tarah se explain Kiya hai aur main aapki sari baton se agri Karti Hun ki yah ek sza ke taur per hai. Slashing UN logon ke liye hai jo blockchain ki system ko manipulate karne ki koshish karte Hain lekin slashing ke bahut sare dhone ke साथ-साथ kuchh nuksan aap bhi hai jaisa ki aapane hamen limitations mein bataya hai.
Aapane slashing ka ek bahut bada nuksan byan Kiya hai ke kabhi kbar kisi kharabi ki vajah se jo ke system mein ya internet mein a jaati hai validator ko nuksan bhugtna padta hai jo ki acchi baat nahin hai because system ko nuksan pahunchane ki intentions Nahin Hoti lekin fir bhi nuksan uthana padta hai
Meri post per itni detail mein tabsra Karne ka बहुत-बहुत shukriya aur mujhe dekh Kar achcha Laga hai ki aapane kis Tarah Mere post ke har EK point ko summarize kiya hai aur har ek chij ko samajhne ki koshish ki hai aur Main Khush hun ke meri information aap logon tk convey Hui
In future be me ici tarah say mehnat karta rahunga aur apne knowledge se aap logon ko agah karta rahunga. Mujhe dher sari duaaen Dene ka बहुत-बहुत shukriya aur maine bhi aapki post ko visit kiya hai aur dher sari duaaen di Hain kyunki aapki post bhi bahut sari tarif ke kabil thi aur Main aapko dobara se good Luck kahta hun
Thanks for sharing, I really appreciate your post, your post is of high quality and you show how knowledgeable you are.
Yea I believe you proved me right from your content, slashing is a common term in the crypto world and I am glad you know more about it.
Thanks for sharing wishing you success please engage on my entry https://steemit.com/hive-108451/@starrchris/steemit-crypto-academy-contest-s12w5-understanding-slashing-in-crypto
first I want to congratulation you that you find an opportunity to participate in this engagement challenge of season 12 and week 5 and I am very happy that you participated very well as well as I am happy that you also engage with me as you are here at my entry and I am happy that you find my post a quality post so it is a kind of encouragement for me
I am happy if you really consider me that I deserve Sach kind of good words from you as you praise about my contact because you are saying that I provin through all this information that I have a great on this topic and yes my dear friend I would like to engage with you in fact I have already leave my comment on your entry you can see and check I wish you good luck in your entry again
Elegir un validador confiable es una tarea obligada para poder participar en un staking confiablemente. La buena reputación de quien tiene la responsabilidad de validar los bloques de la cadena es esencial para disminuir los riesgos de pérdidas potenciales, así como mantenerse informado de lo último es slashing para que las configuraciones del cliente se hagan correctamente. No menos importante es que los validadores se mantengan activos con una conexión a la red continua y estable, pues el slashing por errores técnicos e inactividad representan pérdidas potenciales y disminución de la confianza y reputación.
Saludos y éxitos.
I agree with you that if we want to avoid slashing in any blockchain then it is much better for us that we should choose a validator who is reliable because when we have record and good history then it would be very easy to know that he is trustworthy and he is honest and we can trust upon him
I also agree with you that we should stay in formed about latest news in Crypto word related to slashing so that we may take any precautionary measures in advance as well as activity of validator is very important that he is regular or not because he is not working regularly shows that he is not interested and share with the blockchain and he is no the one at which we can trust for a longer run
I also agree with you that there are some technical issues sometimes and they also have to face by validator and they fall under the category of false positive which is a limitation of slashing. Overall you try to comment in your best way and this extensive comment is a lot for me I wish you good luck and success in this engagement challenge and soon I would be there at your entry to visit your content