Economic Security Proof

Definition ∞ An economic security proof demonstrates that a blockchain network or protocol is economically secure against attacks, given certain assumptions about participant behavior and resource costs. It mathematically shows that the cost for a malicious actor to compromise the system significantly outweighs any potential gain. This proof relies on game theory and economic incentives to ensure honest behavior among network participants. It quantifies the resilience of a decentralized system against various forms of manipulation.
Context ∞ Debates surrounding the economic security of various blockchain consensus mechanisms, such as Proof of Stake, are frequently covered in crypto news. The strength of an economic security proof is a critical factor in evaluating a network’s long-term viability and resistance to centralization. Researchers continuously refine these models to account for new attack vectors and market dynamics.