Restaked Security

Definition ∞ Restaked Security refers to the enhanced security guarantees provided to a blockchain network by leveraging assets that have already been staked on another network. This concept involves repurposing staked capital, typically through mechanisms like restaking protocols, to secure additional networks or services. It aims to create more capital-efficient security models by allowing staked assets to serve multiple purposes.
Context ∞ Restaked Security is a rapidly evolving area within decentralized finance (DeFi) and blockchain protocol design, with current discussions focusing on the associated risks and potential rewards. Key debates involve the systemic risks introduced by concentrating staked capital across multiple protocols, the mechanisms for ensuring robust security across different layers, and the economic incentives for asset owners to participate. Future developments are likely to address the standardization of restaking protocols and the establishment of robust risk management frameworks.