What Is “Slashing” and How Does It Enforce Economic Finality in PoS?
Centralized exchanges (CEXs) manage withdrawal security by requiring a specific number of block confirmations before crediting a deposit or processing a withdrawal. This confirmation depth is their primary defense against double-spend attacks.
For smaller, less secure coins, CEXs often require a significantly higher number of confirmations than for major coins like Bitcoin. They may also implement internal monitoring systems to detect rapid chain reorganizations or sudden hashrate spikes, halting withdrawals immediately if a potential attack is detected to protect customer funds.
