Slashing Explained
Slashing is a key safeguard in blockchain networks, penalizing validators for bad behavior like double-signing or failing to validate blocks. This encourages responsible action and ensures network security.
In trading, slashing also refers to significant losses due to poor decisions or market volatility. Just as validators must follow protocol rules to avoid penalties, traders should use stop-loss orders to protect their capital.
By understanding slashing, both validators and traders can avoid costly mistakes and help maintain a stable and fair ecosystem.It serves as a protective measure, safeguarding the integrity of blockchain networks and trading environments.
