Bell Curve
The Bear Case for Shared Security | S8 E8 | Sunny & Toghrul
Jul 23, 2024
Sunny, co-founder of Osmosis, and Toghrul from Scroll tackle the complexities of shared security in blockchain. They discuss the limitations of Proof of Stake, emphasizing the implications of slashing on validator responsibilities. The duo dives into the innovative concept of restaking and its potential to enhance security while navigating economic challenges. They also explore the risks surrounding liquid staking tokens and the need for synchronized APIs to improve user experience in decentralized environments.
01:22:07
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Quick takeaways
- The cost-benefit analysis of security in crypto is crucial, suggesting that low expenses can justify investments regardless of asset scale.
- Economic security perceived as shared varies significantly from actual protocol security, highlighting vulnerabilities when relying solely on economic backing.
Deep dives
The Cost of Security
Acquiring security in the crypto space should be assessed based on its cost versus the potential benefits. If the expense to secure a massive asset is low, it makes practical sense to invest in it regardless of how big the asset is. The discourse indicates that the perception of security is often linked to large numbers, making high claims about security more attractive from a marketing standpoint. Thus, financial feasibility and perceived value play crucial roles in determining when to invest in security measures.
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