News regarding Bitcoin and cryptocurrencies is in constant turmoil. It can happen that important information gets lost in the daily news flow and you miss important points.
This format is there to remedy that. We come back to the news of the past week in the Crypto Weekly to keep you informed on the current situation of cryptocurrencies.
For this week’s must-see, we’ll come back to Slashing , the bad validator penalty mechanism on Ethereum 2.0 .
Ethereum 2.0 et Proof of Stake
We were talking about it recently, Ethereum 2.0 is an update split into 3 phases. The first, called phase 0, will allow the launch of the beacon chain.
Bitcoin marks the transition from a consensus model based on Proof of Work, to a model called Proof of Stake.
The Proof of Stake is intended to consume less energy. Thus in this system, validators must sequester a defined amount of cryptocurrency to be able to participate in the process. This sum placed in escrow serves as proof of stake. It allows to prove the benevolence of a validator.
In the case of Ethereum, a validator must escrow at least 32 ETH to participate in block validation.
However, escrow is not sufficient to ensure the honesty of a validator and does not ensure network performance. This is why Bitcoin Revolution has introduced penalties as well as slashing to penalize malicious validators .
Penalties and slashing
A validator may be subject to penalties if he fails to fulfill his role as validator. Thus, penalties only affect minor errors and which impact is not critical for the network.
Ethereum 2.0’s consensus system follows a series of rules. Slashing aims to punish validators who do not respect these rules. These breaches are considered more serious and therefore more heavily penalized.
Do not hesitate to consult the entire article for more details on the so-called penalties: Slashing: the risks behind staking on Ethereum 2.0 .