How (successful) applications can be parasitic to blockchain security

Quick take

  • In permissionless blockchains (e.g. Ethereum), the success of the application layer increases the number and value of profit opportunities from frontrunning and arbitrage.
  • Miners and validators are best situated to take advantage of profit opportunities because they control block production (time).
  • How the growing value of applications on a blockchain like Ethereum will influence its long-term security is unclear.

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