Definition ∞ A Security Flywheel describes a self-reinforcing system where continuous improvements in security lead to a positive feedback loop, attracting more users and resources, which in turn further enhances security. As a platform becomes more secure, it gains greater trust and adoption. This increased adoption then provides more incentives and capabilities for additional security investments and improvements. It generates a virtuous cycle of security and growth.
Context ∞ In the digital asset space, the concept of a Security Flywheel is relevant for decentralized applications and blockchain protocols striving for widespread adoption. News reports might highlight how a project’s commitment to smart contract auditing and bug bounty platforms contributes to its growing user base and overall economic weight. This positive cycle is essential for building long-term confidence and reducing perceived risks in the Web3 ecosystem.