How EigenLayer Unlocks Infrastructure Innovation | Sreeram Kannan, Calvin Liu
Empire
00:00
Proof of Stake and Programmable Slashing
In proof of work, the design space is constrained because you can only give positive incentives in terms of things like mining rewards. But there are no negative incentives. So we're constructing this like completely decentralized pseudonymous world with inbuilt enforcement - but to get tight enforcement that validators or whichever nodes are running this system, they behave correctly. In proof of stake, you have that additional degree of freedom, which is that you can build negative incentives into the protocol. Because stake itself is entirely digital, right, like it's just a digital representation of an asset, then therefore the protocol can exert negative incentives over it.
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