The Problem

Blockchain technology has evolved over the last 15 years to become the critical infrastructure for decentralized ap- plications (DApps). The security measures employed by modern blockchain networks have successfully safeguarded the correct execution of the core logic of DApps, defined as smart contracts, within the blockchain itself. However, the additional components of the DApp stack that exist off-chain are not protected by these advancements in blockchain security, leading to numerous vulnerabilities and an increased centralization risk within DApps.

Decentralized trust and security within the blockchain space is fragmented. Currently, the security mechanisms established within on-chain environments fail to support the off-chain components of DApps. In the context of Proof-of- Stake (PoS) blockchains, tokens are staked as collateral, establishing the crypto-economic security for networks that host DApps. However, these collateralized tokens do not extend their security to the rapidly evolving ecosystem of off- chain Actively Validated Services (AVS), such as oracles, bridges, app-chains, messaging layers, RPCs, and modular frameworks.

In addition, off-chain service providers are tasked with the intricate process of establishing their own decentralized trust architectures from scratch. This process often involves designing a staking token, creating liquidity, attracting stakers, recruiting validators, and gaining market adoption. It’s important to note that these operational endeavors, while essential, are not directly related to the off-chain product or service itself.

The problem of fragmented decentralized trust and security is not confined to a single blockchain. The issue exists across all blockchains. For off-chain service providers that support multiple blockchains such as bridges and oracles, obtaining security in a multi-chain environment becomes even more complex. This exposes the service providers to unnecessary risk and can restrict their potential for growth.