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Slashing is a key mechanism coded into certain PoS blockchains such as Ethereum, designed to prevent attacks on the network. In this Pooyan Music article, we will review and introduce Slashing in the proof-of-stake consensus algorithm.
Slashing is a severe penalty applied to proof-of-stake (PoS) blockchains designed to prevent fraudulent and malicious validation activity. Slashing leads to the loss of digital currencies of a validation and their forced removal from the network.
Slashing is a key mechanism coded into certain PoS blockchains such as Ethereum, designed to prevent attacks on the network. To fully understand the definition of slashing, we need to understand the role validators play in PoS blockchains.
Validators are important members of PoS blockchains. They are responsible for processing and verifying transactions and adding new blocks to the chain, both of which are fundamental functions of a blockchain.
Now imagine that your local bank goes rogue and starts making false transactions and defrauding its customers. This is what slashing prevents.
Because validators perform such critical functions, they are required to share a certain amount of Ethereum (32 Ethereum, equivalent to more than $57,000 at the time of writing) as collateral in order to receive a validation opportunity.
If a validator is caught doing activities that are harmful to the network, their staked bond will be reduced. Slashed validations are removed from the network.
According to Ethereum, there are three ways a validator can be reduced. they are:
Offer and sign two different blocks for one slot.
A block certificate that encapsulates another block, effectively changing the date.
With “double voting” by endorsing two candidates for the same bloc.
Here is an example of slashing implemented on the Ethereum blockchain.
If the aforementioned activity is detected, 1/32 of the accused creditor shareholder’s ETH will be burned immediately. Burns are limited to a maximum of 1 ETH.
After this, a 36-day elimination period begins. During this period, the creditor’s stock is gradually lost.
On the 18th day, an additional penalty is applied, the magnitude of which is scaled based on the total staked ETH of all slashed validators in the 36 days prior to the slash event. If more validation has been dropped recently, the 18-day penalty will be longer. This penalty, the middle point is called correlation penalty.
Slashed validators will see their stakes gradually lose ETH over a 36-day period, after which they can exit the network and withdraw any remaining stakes.
