What Is ‘Slashing’ in a Proof-of-Stake System?
Slashing is a punitive mechanism in Proof-of-Stake (PoS) networks designed to enforce honest validator behavior. If a validator acts maliciously ⎊ such as double-signing a transaction or going offline for an extended period ⎊ a portion or all of their staked cryptocurrency is seized, or "slashed," by the protocol.
This mechanism provides a strong economic disincentive against attacks and ensures the integrity of the consensus process.
Glossar
Slashing Mechanism
Forfeiture ⎊ This is the direct economic consequence where a validator's staked capital is partially or entirely destroyed by the protocol for documented misbehavior, such as signing conflicting blocks.
Honest Validator
Validator ⎊ An Honest Validator is a participant in a Proof-of-Stake (PoS) cryptocurrency network who diligently performs their assigned duties, which include proposing and attesting to new blocks according to the protocol's explicit rules.
Staked Cryptocurrency
Yield ⎊ Staked cryptocurrency represents a capital deployment strategy wherein digital assets are actively held within a validation mechanism, typically Proof-of-Stake blockchains, to support network operations and, in return, generate additional cryptocurrency as reward.