How Staking Strengthens Blockchain Security
07.25.25Ever wonder what keeps a blockchain network from being hacked when there's no central security team watching over it? The answer might surprise you: it's ordinary people like you, putting their own digital assets on the line to keep the system honest.
Blockchain technology has changed how we think about value and trust, giving people a more open way to move and store digital assets. But robust security is essential for decentralized technology to work as intended. One of the standout advancements in protecting blockchain networks is staking. It’s not just a way to access earning opportunities, it’s a system that helps keep networks resilient and discourages attacks.
If you're interested in digital assets, want to better understand how blockchains stay secure, or just want more confidence in the platforms you use, understanding staking’s place in blockchain security is an important step. This guide explores staking, how it supports secure decentralized networks, and why it matters for the future of digital assets.
Why blockchain security matters
Security issues have always been top of mind for digital assets. Over the years, three challenges have shaped blockchain’s battle with risk:
51% attacks
When someone controls most of the network’s mining or validation power, they could manipulate or reverse transactions. This was most common in early Proof of Work networks.
High energy costs
Proof of Work relies on intensive energy use, often limiting participation and concentrating power in the hands of those with the most resources.
Centralization risks
Over time, some mining networks became less diverse, drawing strength away from decentralization and creating more single points of failure.
The introduction of Proof of Stake (PoS) helped address these concerns. By rewarding honest participation and discouraging bad behavior, PoS creates a more sustainable and secure foundation for digital asset platforms.
How staking enhances blockchain security
We believe staking is about more than securing rewards, it’s central to protecting the network. Here’s how it offers a unique incentive structure for security and fairness:
1. Economic deterrence
To become a validator, you “stake” your digital assets as a bond of good behavior. Validators are selected to confirm transactions and help update the blockchain. If a validator tries to cheat or defraud the network, they can lose some or all of the digital assets they’ve staked. The risk of loss keeps participation honest.
Attacking a PoS network would require acquiring a large portion of the total staked digital assets.
On major networks like Ethereum, that means an investment of billions, making large-scale attacks much less likely.
The more honest validators participate, the more robust the network becomes.
2. Decentralized, fair validator selection
PoS networks randomly choose validators from a pool, with selection often weighted by the size of each validator’s stake. This model encourages broad participation and limits predictability or collusion, key features for greater network resilience.
Networks like Ethereum, Solana, and Polkadot bring together thousands of unique validators.
Distributed participation prevents power from pooling in a few hands, keeping the network agile and reliable.
A diverse validator set helps the system keep running smoothly, even if some validators drop offline.
3. Slashing mechanisms for built-in accountability
Many PoS networks use “slashing”,a penalty system that removes part of a validator’s staked digital assets if they act against network rules.
This keeps all participants motivated to act with integrity.
Attempts to cheat or go offline at key moments can result in lost digital assets.
Transparent rules and open verification build trust in the system.
Our Sensible Crypto Security Guide goes deeper into self-regulation and digital asset safety.
How staking protects against attacks
Staking systems aren’t just about everyday security, they’re designed to discourage and even prevent large-scale attacks.
Prevention of 51% attacks
By making it extremely expensive to acquire most of the network’s staked digital assets, PoS networks discourage attackers at the gate. While no system is immune, this significantly lowers attack risks compared to past models.
Network vigilance, 24/7
Validators monitor real-time blockchain activity, helping spot suspicious behaviors quickly. Thanks to decentralized governance, security fixes and updates can be implemented flexibly and without intermediaries.
Reducing centralization risks
Staking doesn’t require owning advanced hardware,just digital assets,so it’s open to a broader group of participants. This inclusivity improves both decentralization and security.
These concepts intersect with key advances in wallet control and access, described in Breaking Barriers with Non-Custodial Wallets.
Staking security in action
Real-world blockchain networks make the benefits of staking clear:
Ethereum (ETH 2.0):
After its PoS upgrade, Ethereum has achieved major reductions in energy use while supporting a more secure, expansive network.
Solana (SOL):
Solana supports fast, low-cost transactions and uses staking for resilience and efficiency.
Polkadot (DOT):
Polkadot’s shared security lets multiple chains benefit from a pooled validator set, increasing safety for all.
Check out more examples of secure, modern platforms in Crypto Transactions Made Easy.
The future of staking and blockchain security
Staking keeps evolving—and its role in security continues to grow. Here’s what users can expect as technology and regulation progress:
Upgraded cryptography
Zero-knowledge proofs and new verification systems will give users more privacy and transparency.
AI-powered monitoring
Artificial intelligence may soon enhance live risk detection, keeping networks even safer.
Broader validator participation
More user-friendly staking will encourage diverse participation and limit centralization.
Regulatory clarity
As rules catch up to technology, staking platforms will have clearer ways to inform and protect users.
Stake securely with Ulys
Staking on Ulys is built for simplicity and control. With our non-custodial setup, you control your digital assets, directly participate in network security, and access earning opportunities, all through our user-friendly interface.
Want to know more? Our guide to Modern Crypto Wallets explains non-custodial access in everyday terms.
Start secure staking today
Blockchain is reshaping digital finance—and staking is central to keeping networks secure, fair, and open. Whether you’re new to digital assets or a seasoned enthusiast, staking is a practical, accessible way to make your mark on the future of decentralized technology.
Ready to strengthen the next generation of networks? With Ulys, getting started is simple. Sign up for early access and see how secure staking can fit into your digital asset journey.
Disclaimer: Nothing in this blog is intended to be professional advice, including without limitation, financial, investment, legal or tax advice. Ulys is not responsible for your use of or reliance on any information in this blog as it is provided solely for educational purposes. Purchasing crypto assets carries a high level of risk, including price volatility, regulatory changes, and cyber attacks. On-chain transactions are irreversible once confirmed, and errors may result in permanent loss. Please make sure to do your own research and make decisions based on your unique circumstances. Ulys does not itself provide financial services or engage in regulated activities such as money transmission, custodial services, securities brokerage, or lending. Any licensed financial services (e.g., payment processing, crypto-to-fiat transactions, or lending) are facilitated entirely by third-party providers, who are responsible for obtaining and maintaining the necessary licenses under applicable U.S. federal and state laws.
Risk Disclosure: Crypto investments come with risks, including the potential loss of funds. Always research before making financial decisions. Ulys does not provide financial, investment, or legal advice.
