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Stake Based Security

Definition

Stake Based Security describes the security model employed by Proof-of-Stake blockchain networks, where validators commit a certain amount of their native cryptocurrency as collateral to participate in block production and validation. This economic incentive mechanism discourages malicious behavior, as any attempt to compromise the network would result in the forfeiture of their staked assets. The collective value of these staked assets secures the network against attacks. It aligns validator incentives with the network’s overall health and integrity.