Cardano creator Charles Hoskinson has underscored the fact that its blockchain does not rely on truncation for security reasons
Cardano creator Charles Hoskinson urged former Twitter CEO Jack Dorsey not to paint all Proof-of-Stake logs with the broad brush.
Hoskinson says the Substack post he published on his profile will lead bitcoin maximalists to believe that the Cardano blockchain also has slashing, a feature that allows bad actors to be punished in order to prevent other actors from malicious deter behavior.
The ability to apply economic penalties to 51% of the more expensive attacks is considered one of the key benefits of the proof-of-stake consensus mechanism. However, Bitcoin proponents see this negative incentive system as a major downside.
It’s worth noting that Cardano’s implementation of Proof-of-Stake doesn’t require truncation. The blockchain has a unique reward-sharing system that encourages shareholders to behave rationally. Distributing the supply of ADA to holders through free market dynamics improves the decentralization of the blockchain, making it more resilient to attacks.
A successful attack on Cardano would require someone to hold the majority of all staked coins in order to dominate the network consensus, making it extremely costly. Irrational malicious actors can therefore only form a fringe group with a high probability. If a pool operator goes rogue, the delegators will simply abandon him or her and ensure that a bad pool is not chosen for new block creation.
Also, malicious actors would be financially drained anyway, so Slashing would not be able to prevent such an attack.