What Is “Slashing” in a Proof-of-Stake System and How Does It Deter Malicious Behavior?

Slashing is an economic penalty mechanism in Proof-of-Stake where a validator's staked cryptocurrency is forcibly taken away and destroyed if they are caught acting maliciously, such as double-signing transactions or being offline for too long. This financial punishment makes the cost of a successful attack prohibitively high, serving as the primary deterrent against dishonest behavior.