How Does a “Dispute Mechanism” Interact with the Staking Process?
A dispute mechanism is a process that allows any network participant to challenge the data reported by an oracle node. If a dispute is raised, the staking process is temporarily halted for the contested data.
The challenger usually posts a bond, and the node's stake is locked. If the dispute is upheld by a decentralized arbitration system, the dishonest node is slashed, and the challenger is rewarded.
If the dispute fails, the challenger's bond is penalized.
Glossar
Dispute Mechanism
Resolution ⎊ Dispute mechanisms within cryptocurrency, options trading, and financial derivatives represent formalized processes for addressing disagreements concerning trade execution, valuation, or contractual obligations.
Staking Process
Yield ⎊ Staking processes, within cryptocurrency, represent a mechanism for participants to earn rewards by actively participating in the operation of a blockchain network, effectively locking up digital assets to support network security and validation.