How Is “Sybil Resistance” Maintained within a Decentralized Oracle Network?
Sybil resistance prevents a single malicious entity from operating multiple nodes to dominate the data feed. DONs achieve this primarily through economic incentives like staking.
Node operators must lock up a significant amount of the network's native token. If they provide dishonest data, their staked tokens are penalized, or "slashed." This financial cost makes it economically prohibitive to launch a Sybil attack.
Glossar
Sybil Resistance
Architecture ⎊ Sybil resistance, within cryptocurrency derivatives and options trading, fundamentally concerns the design of systems to mitigate the impact of malicious actors controlling multiple identities to gain undue influence.
Economic Incentives
Catalyst ⎊ Economic incentives, within the realms of cryptocurrency, options trading, and financial derivatives, fundamentally act as catalysts driving participant behavior and shaping market dynamics.
Resistance
Threshold ⎊ The concept of resistance, within cryptocurrency derivatives and options trading, fundamentally represents a price level where selling pressure historically outweighs buying interest, impeding further upward price movement.