Available web3 security products break protocol composability and sovereignty, they are often expensive and centralizing, and demand heavy integration work, all while only preventing ~15% of possible exploits.

We at Drosera Network think web3 needs security products that properly align with the core values of Ethereum itself: a protocol that’s EVM-native, truly decentralized, easy-to-integrate, fully customizable, and based on solidity code.

By introducing a decentralized incident response framework, Drosera is not just addressing the immediate needs for more robust security measures but is also laying the groundwork for a comprehensive security marketplace inspired by the ethos and consensus principles of Ethereum, and the corresponding free market of Ethereum consensus practices built by EigenLayer.

Drosera takes the foundational principles of Ethereum’s consensus and EigenLayer’s security marketplace and applies them to the realm of application security. By establishing a decentralized application security market economy, Drosera enables a seamless interaction between primarily builders (applications) seeking security services and providers (node operators) offering them, all whilst improving and creating robust security for the consumers and users.

This marketplace not only enhances application security, but also fosters an ecosystem where innovation, economic incentives, and security needs converge seamlessly.

Applications outline their security requirements through Drosera’s trap innovation, specifying their budget and desired security parameters. Operators, on the other hand, can choose to engage with these requirements based on the economic incentives and their capacity to provide the necessary security services. This dynamic ensures that application security is not a one-size-fits-all solution but a tailored, market-driven service that adapts to the diverse needs of the Web3 landscape.

In this article, we outline the fundamental actors and their principles facilitating Ethereum’s application security economy. We will highlight our vision and practice of the application security economy upheld by the characteristics of decentralized innovation that are unique to the pillars of crypto itself. We posit that radical change is not a necessity, but an evolution to manage the ongoing innovation and to future-proof the security of DeFi as it continues to scale.

But before we dig in, perhaps a very brief tl;dr

Leveraging the principles of Ethereum’s Consensus layer itself…

What EigenLayer is for crypto economic security, Drosera is for application security.

Let’s dive in.

At the heart of Ethereum’s proof of stake (PoS) mechanism lies the goal of distributed transaction validation and settlement. Validators, incentivized through staking 32 ETH, are crucial for proposing and attesting transaction blocks, ensuring the network’s integrity without relying on centralized intermediaries.

This simple consensus methodology has proven effective, but has recently been augmented by the concept of restaking. Restaking leverages validators’ staked ETH to secure additional networks and infrastructures, enhancing the economic and security utility of Ethereum and paving the way for a new market of restaking platforms like EigenLayer.

Restaking: Ethereum’s Economic Security Marketplace

ETH deposits used to run Ethereum validators and build consensus can be re-used to economically secure other networks and infrastructure built on Ethereum. Restaking increases the economic and security utility of each ETH used to build Ethereum consensus, opening a vast marketplace where stakers generate more yield on a per economic unit basis. The primary crypto economic security marketplace today is EigenLayer, with many more unique restaking marketplaces set to launch later this year.

EigenLayer has built a crypto-economic security marketplace, where stakers and restaking platforms work with operators to choose which applications/infra/middleware/etc receives cryptoeconomic security in the form of reused ETH (as opposed to a network token). It represents a shift towards maximizing the utility and economic efficiency of staked assets beyond their original purpose.

Dynamics of a market economy

This article is not an educational piece on market economies, but for setting context below is the Oxford dictionary definition for a market economy:

“an economic system in which production and prices are determined by unrestricted competition between privately owned businesses”

Market economies are laissez-faire in nature, wherein the supply, demand, and commensurate price for any product or service is determined by the individual economic actors, each with their own set of incentives.

So with this context in mind, we posit the notion of Drosera as the first instance of a truly decentralized application security market economy that empowers all actors and incentivises them.

So how does a security protocol offering decentralized incident response foster an economy for application layer security?

Effectively, what Drosera has built is a marketplace for consumers (applications) to seek a service (application security) from a free market of service providers (node operators).

The application security economy can be understood through the foundational principles:

The Applications/protocols — This subgroup represents the consumers that seek services in the open market. Applications are readily looking to access customized security infrastructure, one which is malleable and flexible to their protocol. These security considerations are what we call a Drosera “Trap”. The trap template is developed using solidity code to define the monitoring and response conditions based on the unique needs and design of their respective protocol.

Each trap consists of the amount the protocol is willing to pay for the security (1 ETH, for example) and for how long of a duration (a month, a year, etc). This essentially entails a protocol’s “security budget”. The complexity of the process is abstracted through the trap development allowing innovators and builders to focus on their protocol without compromising the integrity of their security.

Functionally, the trap acts as an opportunity for service providers (operators) to perform security duties and to be remunerated for their efforts.

The Operators: Operators are the service providers in the open market. Often Operators run infrastructure at scale for different business lines, they typically have the discretionary machine space to run application security (trap functions in this case). Operators are incentivised to enter the Drosera marketplace as each trap is an opportunity to maximize yield from their existing computation.

Based on the specifics of that trap listing, most importantly the budget associated with the trap, service providers either opt-in or opt-out to perform job duties. If they choose to opt-in, they pledge to perform the security duties for the duration of the trap contract. They are incentivised by the defense budget and can opt based upon their capacity and also the rewards on offer.

Operators may choose to opt-in or out based on their own economic incentives. Perhaps the trap posting is not lucrative enough for some operators, or conversely, may be very lucrative. It’s entirely dependent on each operator’s circumstance and motivation.

Drosera Network: Acts as the marketplace to facilitate the interactions between the service providers and the consumers. For building the connective tissue between these two actors, Drosera takes a small marketplace fee.

Based on the aforementioned market dynamics, we posit that a marketplace architecture as envisioned through Drosera is the ideal model for cultivating decentralized security. It empowers and motivates both builders and the application, secured through operators and managed all in a scalable, decentralized manner.

Benefits for app security (for applications)

• Price Discovery: Applications can effectively gauge the cost of securing their operations, ensuring transparency and efficiency in acquiring security services. The application defines their parameters based on their own resources not stipulated annual or ongoing fees.
• Implementation: Leveraging a network of node operators simplifies the deployment of security infrastructure, significantly reducing the time and resources typically required for integrating traditional security solutions.
• Flexibility: The decentralized nature of the marketplace and traps allows for rapid adjustments to security protocols and budgets, catering to the dynamic requirements of decentralized applications.
• Decentralized: No backdoors and no reliance on centralized third parties. Drosera is built on trustless relationships with third party operators meaning no relinquishment of protocol sovereignty.

Benefits for Operators:

• Opportunity: The expansion into application security offers operators, already versed in Ethereum consensus, new avenues for utilizing their expertise and infrastructure.
• Maximization: By deploying unused compute, operators can maximize revenue and optimize margin.
• Stability: Drosera provides stability to operators by maintaining the most conservative slashing conditions in restaking.

In the emergent landscape of blockchain security, the Drosera Network represents a seminal advancement in the establishment of a decentralized economy specifically designed for application layer security. By conceptualizing and implementing a security protocol that facilitates decentralized incident response, Drosera delineates a marketplace wherein applications act as consumers seeking security services, and node operators serve as the service providers.

This innovative marketplace framework is predicated on the principles of free market dynamics, allowing for a transparent and efficient mechanism for the exchange of security services. The foundational architecture of Drosera’s marketplace is constructed upon the interaction between these two key actors: applications that delineate their security requirements and budgets, and node operators who, based on their capabilities and economic incentives, opt to fulfill these security needs. Through this lens, the Drosera Network not only addresses the immediate demands for enhanced application security, but also pioneers a novel economic model that leverages the decentralized nature of blockchain technology to facilitate a more secure, efficient, and adaptable application security infrastructure.

The Drosera Network is at the forefront of a significant shift towards decentralized security solutions in the blockchain ecosystem. By leveraging the principles of Ethereum’s consensus layer and the innovative market dynamics introduced by EigenLayer, Drosera is not only addressing the immediate security challenges faced by applications in the Web3 space but also contributing to a broader security economy that benefits all stakeholders.

As the blockchain landscape continues to evolve, the importance of scalable, efficient, and decentralized security solutions cannot be overstated. Drosera’s pioneering approach represents a critical step forward in realizing the full potential of decentralized technology, ensuring that security, innovation, and economic viability move hand in hand into the future.

Drop us a message on Discord or reach out to our team to join our incoming testnet and futureproof innovation with Drosera.