On-chain punishment refers to automated penalties enforced by a blockchain protocol for actions that violate network rules or harm its integrity. This mechanism is typically implemented in proof-of-stake systems, where validators who behave maliciously or negligently can have a portion of their staked assets confiscated. Such punishments are executed directly by the smart contract code. They are designed to deter dishonest conduct.
Context
On-chain punishment, often termed “slashing,” is a critical security feature in many modern blockchain architectures, particularly those relying on staked capital for consensus. Crypto news frequently covers instances of slashing and discussions around its parameters, as it directly impacts validator economics and network decentralization. Its presence ensures protocol security by economically disincentivizing misbehavior.
This research introduces Cryptographic Whistleblowing, a mechanism design primitive that uses provable on-chain penalties to enforce honesty against financially rational colluders.
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