Network Security Incentive

Definition ∞ A network security incentive is a mechanism within a decentralized network designed to reward participants for actions that uphold the system’s integrity and security. These incentives typically align the economic interests of individual actors with the collective well-being of the network. They are fundamental to maintaining a robust and attack-resistant blockchain.
Context ∞ News articles frequently discuss the efficacy of various network security incentives, such as block rewards or transaction fees, in proof-of-work and proof-of-stake systems. Reports often analyze how these mechanisms contribute to deterring attacks and ensuring the long-term operational stability of blockchain protocols. Their design is critical for sustainable decentralized networks.