Proof of Work Security Assumptions

Proof of Work security assumptions are the foundational premises that the network remains secure as long as the majority of hash power is controlled by honest, profit-seeking actors. These assumptions rely on the economic cost of electricity and hardware exceeding the potential gain from attacking the network.

If the cost of an attack becomes lower than the potential benefit, the security model fails. These assumptions are critical for assessing the risk of system contagion and the reliability of financial settlement on the chain.

They form the basis for understanding how incentives align with the long-term viability of the network. Any deviation from these assumptions, such as the emergence of state-sponsored mining, can alter the risk profile of the protocol.