What Is the Role of ‘Staking’ in a Decentralized Oracle Network like Chainlink?
Staking requires oracle node operators to lock up a certain amount of native tokens as collateral. This collateral acts as a financial incentive for the node to provide accurate and timely data.
If a node submits malicious or incorrect data, its staked collateral can be penalized or 'slashed.' This mechanism aligns the economic incentives of the node operators with the security needs of the smart contracts.
Glossar
Oracle Node Operators
Attestation ⎊ Oracle Node Operators function as critical components within decentralized oracle networks, verifying the integrity and authenticity of off-chain data before it’s utilized by smart contracts.
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.