Cryptoeconomic security refers to the mechanisms that ensure the integrity, stability, and trustworthiness of a blockchain network through economic incentives and disincentives. These mechanisms rely on the principles of cryptography combined with economic models.At its core, cryptoeconomic security involves participants who are incentivized to act honestly by the potential rewards for valid behavior and the penalties for malicious activities. Validators or miners, for example, put up a stake or invest resources, and they can lose these assets if they attempt to manipulate the system. This balance of incentives helps maintain the network’s security. Users are more likely to engage with a system that has robust cryptoeconomic rules, ensuring that participants work together to achieve consensus and prevent fraud. By relying on both cryptographic techniques and economic principles, cryptoeconomic security plays a crucial role in the operational stability and resilience of blockchain networks.