How Does Staking Prevent an “Economic Attack” on an Oracle?
An economic attack is one where an attacker profits more from manipulating the oracle's data than the cost of the attack. Staking prevents this by requiring the attacker to control enough nodes to compromise the feed, which necessitates staking a large amount of collateral.
The protocol sets the slashing penalty and the total staked value to exceed the potential profit from the manipulation, making the attack economically irrational.
Glossar
Slashing Penalty
Principle ⎊ The slashing penalty is a core economic security principle in Proof-of-Stake (PoS) blockchain networks, mandating the forfeiture of a validator's staked collateral for engaging in malicious or negligent behavior.
Decentralized Insurance
Concept ⎊ Decentralized insurance represents an innovative application of blockchain technology and smart contracts to provide risk coverage without traditional intermediaries.
Economic Attack
Manipulation ⎊ An Economic Attack refers to a malicious strategy where an actor exploits the financial incentives or structural vulnerabilities of a cryptocurrency network or its associated derivatives market for profit.
Total Staked Value
Measurement ⎊ Total Staked Value refers to the aggregate amount of native cryptocurrency locked up by validators within a Proof of Stake (PoS) blockchain network.