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Staked Value Security

Definition

Staked value security refers to the economic protection provided to a proof-of-stake blockchain network by the total value of cryptocurrency locked up or “staked” by validators. This collective capital acts as collateral, where a portion can be “slashed” if validators act maliciously or negligently. A higher staked value generally implies greater security, as an attacker would need to acquire and risk a substantial amount of capital to compromise the network. It underpins the integrity of the chain.