Definition ∞ Shared economic security refers to a model where multiple blockchain networks or decentralized applications pool their collective economic value, typically in the form of staked tokens, to secure each other. Instead of each network maintaining its own independent validator set and security budget, they leverage a larger, common security layer. This approach enhances the robustness of smaller chains or nascent protocols by allowing them to inherit the security of a more established network. It fosters a more interconnected and resilient ecosystem.
Context ∞ The state of shared economic security is a prominent area of innovation within the blockchain space, particularly for projects building Layer 2 solutions and application-specific chains. Discussions often center on the trade-offs between enhanced security for smaller protocols and the potential for increased systemic risk if the underlying shared security layer faces issues. A critical future development involves the widespread adoption and refinement of these models, aiming to create highly scalable and secure blockchain architectures that can support a diverse range of decentralized applications efficiently.
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