Steemit Crypto Academy Contest / S12W5 - Understanding Slashing In Crypto

Good evening friends, whenever we hear the word slashing we are expected to reason so many things because it's a very familiar word in our generation, for example yesterday I heard they biggest producers of cement in the country are planning to slash the price of cement in the country.

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Use your own words to define what is slashing in Crypto? And do all blockchains apply slashing?

Before i will explain slashing in crypto, let me explain slashing in reality. In my own understanding slashing have to do with the dividing or breaking down of something into small pieces, in most cases the world slashing sound like a hash word because it's mostly used in strict case for example : The manager slashed your salary or your dad slashed your weekly allowance.

Back to the question, when it comes to crypto slashing. As the word implies it has to do with the dividing or splitting of a validators crypto asset, in most cases slashing affect the forthcoming rewards.

In a professional definition slashing of crypto asset refers to a severe rule enforced to punish irresponsible behaviors on the blockchain and ensure maximum security in a network. For example the asset of a validator can be slashed for wrongly validating a block or participating in illegal activities on the Blockchain.

And do all blockchains apply slashing?

No, Not all Blockchain apply slashing but many blockchains using proof-of-stake (PoS) and delegated proof-of-stake (DPoS) consensus mechanisms, uses slashing to punish offenders, or account owners especially Witness that breaks rules and regulations of the blockchain.

Witness or validators are in charge of creating new blocks on the Blockchain and validating transactions on the Blockchain. As witness rules are required to create orderliness and maintain the integrity of the Blockchain.

There are different crimes a witness can be charged guilty for, for example signing conflicting blocks could come with it's own slashing, also double signing could as attract slashing on witness or validators. This is because these offence can tannish the Blockchain public image and the Blockchain integrity could be tempered with. Also if a witness goes offline for a very long time, leaving the Blockchain to work with a lower man power.

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Explain how slashing protects the blockchain, taking an example of a blockchain that applies it

Slashing is a powerful mechanism that guides the blockchain by experiencing illegal activities for witness and enforcing the blockchain integrity and the blockchain security . Its basic motive is to ensure that witness of the blockchain act in an orderly and obey all established rules, so therefore keeping the blockchain safe, reliable and functional.

1.• Preventing Malicious attitude:
Slashing serves as a punishment to validators/witness who may consider participate in harmful activities such as double-signing or attempting to disrupt the network. The slashing of their staked assets stop's validators from attempting illegal activities that could affect the blockchain's stability.

• Stabilizing the Consensus mechanism Integrity:
Blockchain slashing as I had say often operate on a specific consensus mechanism, know as proof-of-stake (PoS) or delegated proof-of-stake (DPoS). Slashing enforces these protocols by punishing validators/witness who deviate from the blockchain/network rules. This helps that the consensus mechanism functions as supposed, enhancing the blockchain's integrity and preventing any illegal attempts.

• Preventing Sybil Attacks:

Sybil” discovered back in 1973 in Flora Schreiber novel, is a term used to describe the act of creating so many fack account on a network in other to farm rewards. Slashing helps guard a network against a devastating crime know as Sybil attacks, where a malicious validator may attempt farming rewards on the blockchain by creating multiple fake accounts. penalizing by slashing validators who participate in such illegal activities, would drastically reduce the zeal of anyone attempting to do same illegal activities.

•Ensuring Network Availability:
Punishing witness for been inactive for an extended periods of time causing unresponsiveness of the network in that period of time, could really be a good step. This is because if there are no punishment attached validator could lose that sense of responsibility. Validators are now expected to maintain active participation and ensure their systems are actively running and performing correctly, preventing potential disruptions or network inference.

• Improving Trust and Reliability on the Blockchain:
By providing a just environment through slashing, the blockchain enhances reliability and trust among members of the network, including developers, users and investors. Validators are cautioned for their activities, creating order in the Blockchain, so therefore creating sincerity, trust, transparency, reliability, and the success of the blockchain.

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On February 2021, on of Ethereum Blockchain validator known as Staked fell victim of slashing, Staked was found guilty for producing completed blocks and was immediately slashed as a punishment. Although Staked later came out to say it was not on purpose, he added that it was as a result of technical problem. Unfortunately for Staked slashing is a permanent/irreversible punishment so therefore he couldn't regain his lost.

For slashing to occur there must be a reporter or whistle blower, who discovered the illegal acts and reports to the block proposer who then do the needful before slashing occurs. During slashing the reporter don't get any reward but the block proposal gets very little reward for the good job on the Blockchain.

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As a blockchain user, how can you avoid slashing?

As a Blockchain user you should never pray to experience slashing because it's permanent and it could cause you to lose so much money in a short period of time, slashing would take away your staked asset as a punishment. This slashed asset would cause you so much because it's of high value. So as a validator it's necessary you avoid slashing by doing the needful.

• As a validator it's best you avoid signing two different blocks for the same slot in a network, because such crime or mistakes are really dangerous and can trigger slashing on your account or staked asset at a any period of time.

• As a Blockchain user it's advised that you should never runs same validating keys into two or more servers at same time, no matter your intentions please avoid doing this. Some users do use same validating keys on different server as a step for backing up but as I said no matter the reason please avoid it.

• Try getting a local slashing protection database, to help keeping your asset for slashing, only the signing history activities of the validators in that local instance are tracked. If the validator changes the system configuration, they must also change the signing history on the database to ensure safety.

Source

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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 do not enforce such punishment on its validators also know as witness. Moreover Steem Blockchain run on Delegated Proof Of Stake (DPoS) not Proof Of Stake (PoS) consensus mechanism. As I have said before slashing works on most Blockchain using Proof Of Stalk (PoS) consensus mechanism like Ethereum and Solana.

Unlike upgraded Ethereum Blockchain where you need 32 Ethereum to become a validator, on steem blockchain witness are voted in by users with steem power on the Blockchain. Although the higher the steem power the higher the vote you can give to your desired witness .

In my deepest understanding the only way to remove a withness on steemit is to remove your votes from the witness or vote another withness with higher steem power. This was seen has been seen in many case where poorly performing witness loses their place in the top list of witness on the Blockchain.

I think it would be difficult to enforce such punishment now on witness without changing it's consensus mechanism to Proof Of Stake. This is because their stake alone don't make them witness, because they need other votes to retain position. So therefore removing their stake might not affect them that much.

I would actually love to see such policies to be added because it's create a order or way that forces people or withness do the needful at any given period of time. Punishing bad witness would cause others to have an extra calculation before defaulting or misbehaving on the Blockchain.

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What are the advantages and limitations of slashing

Just like i would always say everything that has a good side also has a bad side, so therefore even slashing also has its downside.

Advantage of Slashing

• Creating Orderliness:

Slashing helps create orderliness in a Blockchain as it gives the validators a reason to respect theirself and behave well. Whenever a validator knows that the consequences of misbehaving are huge he tends to behave him or herself. As we all know Ethereum is of high value, infact it's the second most valuable coin after Bitcoin, so therefore any Ethereum slashed would mean big money lost.

• It's Irreversible:

Unlike punishment in most Blockchain that tends to be temporary and reversible, slashing is irreversible making the Blockchain free from corruption. Because validators know there's no amount of money that would save them from getting punishment if they misbehave.

• Blockchain Security Enhancement:

Slashing helps enhances the security of blockchain networks. By punishing validators for criminal activities such as farming or attempting to manipulate the system reward system.

• Interest Of The Blockchain:

Slashing encourages the validators to have the best interests of the blockchain in their heart. Validators have no choice but to act in a way that would benefit the Blockchain. They won't behave carelessly and nonchalantly towards the growth of the blockchain.

• Network Reliability and Fault Tolerance:

Implementing slashing techniques helps create a stable and reliable Blockchain. Validators are discouraged from participating in illegal activities that could spoil the integrity of the blockchain. The slashing punishment associated with the pos consensus mechanism motivate validators to act responsibly and avoid illegal activities that could compromise the Blockchain integrity.

Limitations of Slashing:

• Risk of Making Mistakes:

One of the significant limitations of slashing is the potential for affecting innocent validators on the Blockchain, innocent validator may face penalties due to accidental or technical issue. Validators may make mistakes or experience technical issues that might cause them be penalized. For example in the Case of the staking pool i mentioned above, the validators were slashed as a result of technical issues that can't be reversed.

• Fear to Participation:

The fear of been slashed accidentally may scare investors or validators from participating in validation of a network. The financial risk of losing valuable asset as a result to mistake could hinder the wililness of people participating in a Blockchain activities in a long period of time. This could lead to a lower amount of validators, causing the Blockchain to br lead by a very few amount of validators.

• Slashing Complexity:

Slashing is a very powerful but new technique that are used in fewer Blockchain, so therefore only few developers can understand and implement it successful and easily. Implementing the slashing punishment technique can be very very complex to handle.

Moreover the technique governing slashing may vary across different blockchain platforms, and understanding the indepth of these slashing punishment needs advance technical knowledge. This complexity can scare away non-technical users and less technology knowledge validators to participate in the project.

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Conclusion

Slashing is a very awesome topic that I didn't regret coming upon, slashing is a punishment that divides validators assets for going against some vital rule's or conditions on the Proof Of Stake (PoS) consensus mechanism using Blockchain.

Thanks for going through, wishing you success the best.
I am inviting my dear friends and colleagues, @pelon53 @kouba01 @sahar78 @khursheedanwar @sachin08 @sahmie @steemdoctor1 @shabbir86 @aviral123 @yancar @ngoenyi