Definition ∞ A bounded trust model establishes a security framework where trust is restricted to a predefined group of entities. This model operates on the premise that complete trust in an entirely permissionless system is impractical or undesirable for certain applications, while full centralization is also avoided. Instead, it relies on a subset of trusted validators or participants to maintain network integrity and process transactions. The scope of trust is explicitly defined, often through reputation systems, staking mechanisms, or known identities, reducing the attack surface compared to open networks.
Context ∞ Bounded trust models are frequently discussed in the context of enterprise blockchain solutions and consortium chains, where participants require a higher degree of control and accountability than public networks offer. A key debate concerns balancing the benefits of controlled participation with the decentralized ethos of blockchain technology. Future developments may see hybrid models that blend elements of bounded trust with permissionless features to suit diverse operational and regulatory requirements, particularly in regulated financial sectors.
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