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Suppose a baker has the highest staking balance, and has a few delegations from his own network and now when it comes to bake, he does something against the protocol or edits a transaction to profit him more than what he has deposited as security and he gets accused also so he only loses his security deposit. Then where is the network security? The baker will earn more than what he'll lose as security deposit.

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  • I don't understand your question. What do you mean by "Also all the delegations sell their tezos to someone else" ? Maybe you want to point out two remarks in the question ... In this case, it's better to use items.
    – iguerNL
    Feb 17 '19 at 19:35
  • @iguer: I meant that all the delegators who had delegated their tezos to the delegate who changed some transactions, have now sold their tezos to someone else, because they don't want to get involved with such kind of transactions, even if they knew this would happen as it was all planned. Feb 17 '19 at 19:39
  • So this way all the delegators are safe from the fraud transactions as their tz are not locked anywhere they have just delegated the tz not transferred and they can sell their tezos anytime without any notice to the delegate to whom they were delegating. Feb 17 '19 at 19:41
  • delegators do not "sell" their xtz to a baker, please update your question to make the words more precise, thanks!
    – Ezy
    Mar 2 '19 at 23:09
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The delegators have nothing to do with the validity of the transactions signed by their delegate/baker. The delegated funds are never at risk and that is why it is always safe to delegate your tokens.

The example you gave of a baker including a "bad" transaction in its block is handled by the endorsers. They will not endorse this block and the bad baker won't get rewarded as each baker in the priority line will have an opportunity to create the block with a set of valid transactions that will gain more endorsements.

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  • So if the block is not endorsed by anyone then it will not be included in the blockchain? I am assuming that Nth block is endorsed in N+1th block, that means the block is already the part of blockchain. Can u explain in detail what happens when a block do not get any endorsement? Feb 19 '19 at 6:24
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    A zero endorsed block can still be included if subsequent blocks are built on top of it. The chain with the greatest overall fitness (total number of endorsements) wins. The issue of zero or low endorsed blocks is also addressed by the following questions tezos.stackexchange.com/questions/111/zero-endorsement-blocks and tezos.stackexchange.com/questions/279/…
    – cousinit
    Feb 19 '19 at 6:40

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