A Security Budget refers to the total economic resources allocated to secure a blockchain network, primarily through incentives paid to validators or miners for their participation. This budget funds network defense, ensuring that honest participants are adequately compensated for their efforts in maintaining consensus and processing transactions. It is a critical component of a blockchain’s economic security model.
Context
A sufficient security budget is critical for the long-term viability and integrity of proof-of-work and proof-of-stake blockchains, ensuring that the cost of attacking the network remains prohibitively high. Debates often concern whether current fee structures and issuance rates provide adequate security as networks mature and transaction volumes fluctuate. Maintaining this budget is a continuous challenge for protocol designers.
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