Oh, nicely, nicely! Former Twitter CEO Jack Dorsey’s Substack publish about how the PoS algorithm works within the occasion of the Ethereum Merge was not nicely acquired by Charles Hoskinson. He stated that Bitcoin maximalists would “assault” the Cardano blockchain of getting a slashing function, as nicely.
The article mentioned Ethereum’s Proof of Stake options to power consumption, considered one of which was “slashing”, or punishing customers for including ambiguity to the community with the intention to disincentivize different actors from behaving maliciously.
Bitcoin backers see this incentive system as a serious drawback. It’s price noting that Cardano’s proof-of-stake implementation doesn’t necessitate slashing.
The IOHK staff thought of a reward-sharing scheme incentive mannequin that promotes the truthful formation of stake swimming pools and welcomes as many contributors within the PoS community as attainable. Thus, they demonstrated that penalizing malicious contributors is pointless if the specified variety of swimming pools exist and they’re in Nash equilibrium.
Additionally Learn: Cardano to undergo Vasil Hard Fork on September 22