Slashing
Slashing is a penalty applied to validators who break network rules or behave incorrectly.
✦ Key Insight
It protects proof-of-stake networks by discouraging dishonest or careless behavior.
✕ Common Misconceptions
Staking with unreliable validators or not understanding validator risk.
Detailed Explanation
How It Works
If a validator goes offline too often, signs conflicting blocks, or violates protocol rules, part of its staked assets may be removed.
FAQs
Can regular stakers be affected?
Yes, if they delegate to a validator that gets penalized.
In Practice
Dig Deeper
Staking
The process of actively participating in transaction validation on a Proof-of-Stake (PoS) blockchain. Participants lock up (or 'stake') their cryptocurrency holdings to support network security and operations, earning rewards in return, similar to earning interest.
Validator
A validator is a network participant in a Proof-of-Stake (PoS) blockchain that stakes cryptocurrency to propose, verify, and finalize new blocks of transactions, earning rewards for honest behavior and risking penalties (slashing) for misconduct.
Proof of Stake
Proof of Stake is a blockchain consensus system where validators secure the network by staking coins.