Cryptoeconomic Security

Cryptoeconomic security is a framework that uses economic incentives, typically in the form of cryptocurrencies, to secure distributed systems. By requiring participants to hold a financial stake, this mechanism ensures that honest behavior is rewarded while malicious actions are discouraged through the risk of losing their staked assets.

This combination of cryptography and economic principles creates a self-regulating environment that aligns the interests of participants with the integrity of the network, ultimately maintaining trust and stability across decentralized ecosystems like blockchain protocols.

Automata's Multi-Prover AVS leverages EigenLayer for Ethereum's cryptoeconomic security to protect against liveness risks against Trusted Execution Environments (TEEs), where it ensures that operators continuously run the TEE as required. If an operator fails to maintain proper execution, they face slashing penalties.