Steemit Crypto Academy Contest / S12W5 - Understanding Slashing In Crypto
Greetings to all of you!
Slashing in Crypto world is one of the unique term for me and I tried my best to give best possible answers of all the required questions so let's discuss all of them one by one.
| Slashing | Especially in proof of stake blockchains lation is like a punishment that is being imposed on validators when they act by doing any misconduct and violate any rule that may be detrimental for blockchain. Slashing in other words is a way to prevent validators to engage in any harmful activity at blockchain |
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No according to my research all blockchains don't apply slashing mechanism because most probably it is mechanism which is specified to proof of take mechanisms in which validators are selected for validation of blocks and all it depends upon number of tokens they stake or hold.
When through slashing mechanism validators are punished due to their acts which are against the blockchain rules and regulations then at that time slashing works for protection and security as well as integrity of blockchain.
When validators tries or attempt to double spend or create conflicting blocks then at that time slashing mechanism kicks in.Validator's tokens that are staked are partially confiscated and they may also be banned for a temporary or for a permanent time from their participation in consensus protocol.
Slashing main purpose
Main purpose of slashing I am going to discuss below.
Slashing is a great way for discouraging validators who engage in harmful activities that are not in favour of blockchain and it is a way for maintenance of trust and security at the blockchain network.
Slashing in other words is a way for insentivization of validators that act with honesty and follow all rules and regulations of blockchain and follow consensus rules as if there is potential loss in their stated tokens then they may act as deterrent.
It is not necessary that if there is a blockchain which is following proof of stake mechanism then slashing would be applied on it surely. Each blockchain have its on rules and regulations so depending upon the design choices made by developers in a blockchain slashing mechanism could be applied or could not be applied so it varies from blockchain to blockchain.
I'm taking Ethereum 2.0 blockchain as an example that how slashing protects this blockchain.
Slashing mechanism ensure security as well as integrity in Ethereum 2.0 Blockchain.In Ethereum 2.0 Blockchain validators are those who are responsible for proposing and validation of blocks and for this purpose they stake certain amount of Ether token.These staked tokens are like a guarantee of honesty and obeying of rules and regulations of validators at blockchain.
Suppose malicious behavior or attempt of a validator in Ethereum 2.0 Blockchain
If there is a validator at Ethereum 2.0 blockchain who tries to double spend or create conflicting blocks at blockchain then it is clear that actions of that validator are malicious for blockchain. After these type of activities slashing mechanism comes in so that it may give penalty to validators that are doing malicious acts.When validators Ether token can be partially confiscated then it all depends upon extent of their violation of rules.
Slashing mechanism serves as a deterrent after the implementation of punishment on validators against their harmful behaviour which are against rules and regulations of blockchain. If validator would remain honest at blockchain then his staked tokens would remain safe and if we reverse the situation in which a validator is engaging in harmful activities then definitely in Ethereum blockchain he would lose his Ether which would be a big loss for him.
Here I am discussing two scenarios in which you can say that slashing mechanism is working in Ethereum 2.0 Blockchain.
Double-signing
There is a requirement for validators for signing in to their proposed blocks through their private keys. Double signing offense would be considered if suppose there is a validator who is signing in to two conflicting blocks at same height. It would be considered that it is an attempt for manipulation of blockchain or secondly it may also be considered a technical issue. Whatever the actual situation is slashing mechanism abruptly kicks in and validators stakes Ether would be partially or completely confiscated.
Surround vote
In Ethereum 2.0 Blockchain validators fullfil their responsibility while participating in the consensus by voting on the validity of blocks proposed by other validators. If there is a validator who is surrounding a block which is conflicting with his votes then indicating support for conflicting block and honest block would be suspicious act and it would be considered surrounded vote offence also. It would be considered that a validator is attempting to manipulate the consensus so due to this slashing mechanism would be triggered and staked tokens of validators would be confiscated.
For avoidance of slashing as a blockchain user there can be different things that I can follow.
Choose a trustworthy Validator
In a proof of stake blockchain it is important that validator that you are choosing should be trustworthy so it is important to always choose a validator which have track record of consistent good reputation and strong commitment for security of blockchain. For this purpose it is important to research about history uptime,responsiveness and overall community feedback of validator that you are choosing.
Keep on eye on latest news
It is very important for a validator to keep an eye on latest news that if there any change in rules and regulations of the blockchain or is there any new update about which he don't know. When a validator would stay informed about any change in slashing conditions then he would take more appropriate measures to avoid them.
Making sure of a Stable Network Connection
There is a need for making sure that there is a stable internet or network connection and internet connection is reliable and its down time is very minimal because if there would be maintainance in network connection then it would prevent any missed block proposal as well as voting activities because due to unreliable network connections it would be malicious behaviour to miss block proposals.
Use Secure Hardware and Software
It is very important for a validator that he should protect his private keys as well as he should also protect his software by using a secure hardware wallet because these are the devices that provides and extra layer of security against unauthorized access of hackers and in this way risk reduces about private keys compromisation. That's why is always recommended to use latest version of validator software because it include bug fixes also.
Monitor Validator Performance
It is important to have a check and balance on metrics like block proposal success rate as well as participation in voting and uptime for checking the performance of validator that he is working properly or not so by monitoring of validator you can identify if there is any issue that can lead to slashing due to poor performance.
Follow Consensus Rules
It is very important for a validator to follow the consensus rules and strictly adhere to it and rules include protocol specifications and some rules for validation of blocks as well as their are some additional guidelines also set by network so if a validator would ensure his actions according to rules then it would be a best way to avoid slashing.
At steem blockchain there is no implementation of slashing mechanism as a punishment because I have already told that mostly slashing is used in those blockchain which works on proof of stake mechanism and if at these type of blockchains validators are doing any malicious behaviour then they would be punished in the form of slashing mechanism but steem is working on delegated the proof of stake consensus algorithm so there is no implementation of slashing at this blockchain.
In steem blockchain there are a set of elected witnesses by which consensus is achieved and by these weaknesses transaction validation occurs and in this way blocks produced. Elected witnesses are voted into their position by different stakeholders and their vote depends upon their reliability and contribution to network.Stakeholders can also vote out witnesses if they find out any malicious activity by any witness.So in steem blockchain rather than slashing system relies upon community governance as well as on reputation so that integrity of blockchain remains secure.
It is very clear that slashing mechanism is not implemented at steem blockchain because different consensus algorithms have their own mechanism for incentivization of validators and their malicious behaviours. If I talk about delegated proof of stake mechanism which is followed by steem blockchain then in this blockchain reputation and stake of a witness is important for integrity and protection of blockchain.
If slashing is absent in steem blockchain then it could be considered as design choice that is it responsible for aligning with principals and important goals of platform so with its reliance on community governance and reputation based consensus this blockchain aims to foster a decentralized and interactive environment where stakeholders have a say in blockchain operations.
There are many risks as well as challenges that are associated with slashing mechanism and one of them is false positives and it means that there is a mistake which was unintentional for a validator but still validator is penalized without any reason or due to technical issue which is not a transparency and fairness with that validator who have to pass through serious consequences without his personal intentions involved. So in this way slashing good also hinders the growth of blockchain and discourage participation of a validator so implementation of slashing sometime also requires a very careful consideration of slashing conditions and overall impact on decentralization of blockchain.
It depends upon specific goals consensus algorithms as well as community consensus if you want to implement slashing in a blockchain because each blockchain have its own considerations that shapes its design as well as governance mechanisms.
Here are some of the advantages and limitations of slashing.
Advantages of Slashing
| 1 | Slashing is responsible for security of blockchain when it gives penalty to validators who engage in any harmful activities that are malicious like double spending as well as trying to manipulate the consensus so this is one of the advantages of slashing |
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| 2 | Blockchain network stability and resilience could be enhanced by slashing mechanism because validators have vested interest for maintenance of integrity of blockchain as any harmful act could result in loss of their stake. This thing encourages all validators to follow consensus rules. |
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| 3 | Slashing can also helps blockchain from sybil attacks where attacker tries to create multiple identities to overcome blockchain so validator who attempt to create multiple identities for manipulation of system could be panelized through slashing mechanism. |
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| 4 | Economic efficiency by the reduction in the need of excessive security measures can also be promoted by slashing mechanism. Instead you like completely on computational resources which are also very costly slashing provide an economic disincentive for validator to act dishonestly. |
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Limitations of Slashing
| 1 | Slashing is potential for false positive which is the main limitation of it because validators may unintentionally trigger slashing conditions if there is any issue related to network instability or technical issue so in this way false positive can result in loss of stake of validators for no reason in which they are not involved with their intentions. |
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| 2 | Slashing mechanism can also increase centralization risk because validators become very conservative to avoid any punishment or penalty which could lead to fewer participants in blockchain. Stakeholders which would have significant stake would have more influence at slashing mechanism so it potentially centralizing the power within the blockchain. |
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| 3 | Implementation of slashing mechanism could be very complex as well as challenging because determination of real slashing condition and giving penalties to validators who are involved in malicious act requires careful consideration as well as consensus among blockchain participants. |
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I want to invite here
@steemdoctor1
@inspiracion
@jyoti-thelight
@graceleon
To participate 😊
Excelente contenido sin nada que se pueda agregar, esta muy completo.
Destaca con claridad el recorte de tokens como un guardián protector de la red y las medidas para evitarlo.
Gracias por compartir, saludos y éxitos.
you have explained slashing in a perfect way as you could and it seems that you put a lot of your effort while participation as well as I agree with you about the meaning of slashing that you have explained in most comprehensive way that it is a way of giving punishment to validators who are not sincere with the blockchain and try to manipulate the system of network
Surround vote and voting for conflicting blocks at same height are really most of the important things that trigger slashing you have also explain in practical example I really like it as well as you have also explain the some of the ways in which I agree with all ways and I agree that there should be a strong network connection to avoid any miss conduct
Overall I really like presentation of your post and I appreciate your efforts that you made to write it I wish you good luck and success in this engagement challenge and their are many many prayers for you for your future I wish you success
First of all I want to say thanks to you that you comment on my first and I am happy that you clearly understand the concepts that I deliver to all of you and I agree with you that I put my maximum efforts while writing this post as well as I tried my best to explain every question in comprehensive way.
I agree with you and I appreciate your effort that you choose most of the important point s from my post which shows me that you read everything in our beautiful way and yes these are the two things that can trigger slashing mechanism.
Assalamualaikum dear sis.
Hopefully, you will be doing well. I must appreciate your beautiful explanation on the given topix of this week. You have rightly said that the slashing mechanism is totally helpful in increasing the security of the network. It also make sure that the validator tend to be more responsible and passionate towards the growth and betterment of the platform.
Thanks for sharing and great luck ahead 🤞
Wasalam bro ! How are you??
Yes I am happy and living a safe and sound like and I appreciate your comment at my post and yes I am happy that you pic my point that if we want to increase security of network then slashing mechanism could be applied if blockchain is working on proof of mechanism and I also agree with you that it made more honest and sincere and creates a more honest environment.
Greeting sister ,
I hope you're in good health. I must say your excellent explanation on this week's topic. You have pretty good pointed out that the slashing mechanism significantly enhances network security.
It also fosters increased responsibility & dedication among validators for the platform's improvement. Well done!
Success for you .
Thank you so much and I am happy that you give your precious time to my post as well as I am happy that you consider my explanation in this post wonderful and excellent as well as you understand some of the most major point that I want to highlight regarding slashing mechanism.
I extremely agree with you that when slashing mechanism is being applied on blockchain then it create a sense of responsibility and honesty among validators because they know that their tokens may be slashed out in the case of any malicious act.
I am really love you post man such a quality post indeed please continue writing and commenting as you do it would really help grow the steem blockchain into a better and stronger one .
Indeed it's really unique and I am impressed by your work man thanks for your explaination, I learned something new today.
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
Thank you so much for stopping by my post and giving your comment here and I am happy that you really like my content as well as I agree with you that when we all would you continue commenting and supporting each Other through upvote and comments then definitely this blockchain would grow one day in a more better way.
I really appreciate your comment on my post but it would be more good if you would stick to the topic and then you respond in a professional way in comment but over all I also visit your entry which was good and you explain each and every question in good way I wish you good luck again.