What Is the Concept of ‘Economic Security’ in PoS?
Economic security in Proof-of-Stake (PoS) is the security derived from the financial commitment and cost associated with attacking the network. It relies on the principle that the cost of acquiring a majority stake and the risk of losing that stake through slashing outweigh the potential gains from a malicious act.
This economic deterrent, rather than energy expenditure, is the primary defense mechanism against attacks like double-spending.
Glossar
Economic Security
Resilience ⎊ Economic security, within the context of cryptocurrency, options trading, and financial derivatives, fundamentally concerns the capacity to withstand and recover from adverse market conditions and systemic shocks, particularly those amplified by the inherent volatility of digital assets.
Financial Commitment
Collateral ⎊ Financial commitment within cryptocurrency, options, and derivatives contexts frequently manifests as collateral, securing positions against counterparty risk and potential market movements.