Staking Collateral

Definition ∞ Staking collateral consists of digital assets locked within a proof-of-stake blockchain network by validators. This deposit serves as a security bond, incentivizing honest participation in network consensus and securing the overall integrity of the blockchain. It represents a financial commitment.
Context ∞ The value and integrity of staking collateral are fundamental to the security model of proof-of-stake blockchains. This mechanism is paramount for maintaining network consensus, deterring malicious behavior, and ensuring the reliable validation of transactions, thereby underpinning the network’s trustworthiness.