How Does the Threat of Slashing Influence the Validator’s Choice of Hardware and Network Setup?
The threat of slashing forces validators to invest in highly reliable hardware, redundant network connections, and robust operational procedures. Validators must prioritize 'uptime' and 'correctness' to avoid both slashing and inactivity leaks.
This includes setting up failover systems and secure key management practices to prevent accidental double-signing, leading to higher capital investment in infrastructure than might otherwise be necessary.