How Does a Limited Validator Set Impact the Security Model of the Chain?

A limited validator set centralizes trust but can enhance security against external attacks, provided the validators are highly trusted and geographically distributed. The security model shifts from relying on economic incentives (like PoW/PoS) to relying on the reputation and legal contracts of the member organizations.

However, it increases the risk of collusion among the validators. The chain is secure if the collective members' trust is maintained and they adhere to the network rules.