Slashing

Definition: Slashing is a punitive mechanism in Proof of Stake (PoS) networks like Ethereum 2.0, designed to maintain network security and integrity. Validators staking their ETH can be slashed, meaning they will lose a portion of their staked ETH as a penalty for actions that harm the network's operation and are removed from the validator set, preventing them from participating further in the consensus process. This can occur due to malicious actions like double signing (using the same validator key with two different nodes) or due to negligence, when migrating.

Category: Staking

Example: A validator that attempts to double-sign a block or acts in a way that could potentially lead to a network fork risks being slashed. This not only results in a loss of a portion of their staked ETH but also affects their ability to continue participating in the network validation process.

External Resources:

• Understanding Slashing in Ethereum Staking - A detailed article on the importance of slashing in Ethereum staking and its consequences for validators.