Security Ratio

Definition ∞ The security ratio quantifies the level of protection a blockchain network possesses against attacks relative to its economic value. This metric assesses the financial cost required to compromise a decentralized network, typically by overcoming its consensus mechanism, compared to the total economic value secured by that network, such as its market capitalization or total value locked. A higher security ratio indicates a more robust and resilient system, making it less attractive for potential attackers. It provides a quantifiable measure of a blockchain’s economic security.
Context ∞ The security ratio is an important analytical tool for evaluating the robustness of proof-of-work and proof-of-stake blockchains, often cited in discussions about network resilience and the long-term viability of digital assets. News reports sometimes compare the security ratios of different networks to highlight their relative strengths or vulnerabilities. Enhancing this ratio through increased participation in staking or mining, alongside protocol improvements, remains a continuous objective for network developers.