5.2 Terms

Bonds: Bonds are the equivalent of capital expenditure in PoW, such as a miner purchasing hardware and paying for electricity. Bonds are the currencies that verifiers commit as collateral when verifying transactions.

Slashing: A proposal introduced in Proof-of-Stake system, where verifiers who violate protocol rules may lose some or all of their stake (bond). When a voting proof is issued for different branches, the branch can destroy the verifier’s bond. This is an economic incentive to prevent verifiers from confirming multiple branches and causing forks.

Super Majority: Super majority refers to the majority of verifiers that hold 2/3 of the total number of bonds. A super majority vote indicates that the network has reached consensus and it takes at least 1/3 of the network maliciously vote to invalidate a branch. This would make the economic cost of an attack reach 1/3 of the staked market value.