September 9, 2020, 7:04PM EDT
• 7 min read
How (successful) applications can be parasitic to blockchain security
- 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.