Rational Actor Security

Definition ∞ Rational actor security refers to the design principle in decentralized systems where the protocol is structured such that it is always economically more beneficial for participants to act honestly than to attempt malicious behavior. This security model assumes that all network participants are “rational actors” who will always choose the action that maximizes their own economic gain. By aligning incentives, the system aims to achieve security and consensus without relying on trusted intermediaries. It forms the bedrock of many proof-of-stake and game-theoretic blockchain designs.
Context ∞ Discussions around rational actor security are central to evaluating the robustness of new consensus mechanisms and decentralized finance protocols. News often covers analyses of whether a protocol’s incentives truly deter attacks under various market conditions. The challenge involves ensuring these economic incentives remain effective even as the network scales and external factors change.