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What Is Restaking in Blockchain and How It Strengthens Networks

As blockchain technology grows more complex, developers are finding new ways to make existing systems more efficient and secure. One of the latest innovations in this space is restaking, an evolution of traditional staking models.  

You can think of it like reusing a security deposit across several trusted platforms instead of needing a separate one each time. This approach not only boosts security but also improves capital efficiency, since participants can earn additional rewards without staking more tokens.  

Restaking emerged as a response to some of blockchain’s biggest challenges — scalability, security, and resource optimization. By letting staked assets work harder across interconnected systems, it helps blockchains handle more activity without compromising safety or decentralization. 

Restaking represents a major step forward in how blockchains share security and value, laying the foundation for a more connected, scalable, and efficient decentralized ecosystem.

The Basics: From Staking to Restaking

To understand the concept of restaking, one needs to begin with staking and how it works. In a typical blockchain network, staking means locking up your tokens to help secure the network and validate transactions. In return, participants—often called validators or delegators—earn rewards for keeping the system honest and running smoothly. It’s a simple exchange: you commit your assets, and the network rewards you for supporting its security.

Restaking takes this concept a step further. Instead of those staked tokens being tied to one purpose or protocol, restaking allows them to be reused to secure additional networks or applications. It does this without needing to unbond or move them from their original position. This creates a layered security model where the same assets provide trust to multiple systems at once.

If staking is putting your tokens to work once, restaking is giving them a second job, without leaving their original post. In doing so, restaking transforms staking from a single-network feature into a shared security foundation for multiple ecosystems.

Why this matters: Restaking increases the utility of staked assets and strengthens overall blockchain security. It helps networks grow and interconnect more efficiently—without requiring users to lock up extra capital.

How Restaking Works Technically

Restaking reuses staked tokens to secure additional protocols. Below is a clear, step-by-step view of the common technical flow.

  1. Tokens are staked on a base network.
    You lock tokens with a validator or staking contract on a base chain like Ethereum.
  2. A restaking claim is made on top of the base stake.
    The same staked balance is referenced or pledged to a second protocol without unbonding.
  3. A builder or coordinator assembles the restaking assignment.
    That entity maps which staked balances back the additional validation slots on the secondary protocol.
  4. Smart contracts record the linkage and enforce rules.
    Contracts track which base stake backs which external duties. They log slashing conditions and reward splits.
  5. Validators perform duties for both layers.
    When assigned, a validator signs blocks or performs checks for the secondary protocol while remaining staked on the base chain.
  6. Slashing and accountability span layers.
    If a validator misbehaves on the secondary protocol, on-chain logic can slash the underlying stake on the base network.
  7. Rewards and penalties are distributed automatically.
    Smart contracts pay additional rewards for the extra work and apply penalties when conditions are violated.

Think of a single security deposit being authorized to cover multiple services without being moved.
“Restaking transforms staking from a single-chain feature into a shared security foundation for multiple ecosystems.”

Frameworks such as EigenLayer provide early examples of how these linkages can be implemented in practice. They act as middleware that lets projects request security backed by existing stakes, while relying on contracts to enforce slashing and rewards.

Why this matters: Restaking multiplies the security utility of the same capital while keeping enforcement on-chain, improving capital efficiency and enabling new layers of decentralized services.

Why Restaking Strengthens Blockchain Networks

Restaking adds an extra layer of strength to blockchain ecosystems by making existing resources do more. Instead of requiring new validators or fresh capital, it reuses what’s already staked to support multiple protocols at once.

First, it boosts security. When the same group of validators helps secure several protocols, each project benefits from the collective trust and reliability of the network. It’s like sharing a well-trained security team across multiple buildings, every location stays protected without hiring new guards.

Next, it improves capital efficiency. Stakers can earn rewards from more than one source using the same tokens, without having to unstake or duplicate their holdings. This keeps liquidity active and reduces waste across the ecosystem.

Finally, it encourages growth. New projects can plug into existing validator networks instead of building their own from scratch, making it easier and faster to launch secure, decentralized applications.

In a nutshell, restaking makes blockchain ecosystems stronger, not by adding new tokens, but by multiplying the value of trust.

The Challenges and Risks of Restaking

While restaking opens up new possibilities, it also introduces some real challenges that blockchain ecosystems need to handle carefully. One major concern is slashing risk. Since the same staked tokens secure multiple protocols, a validator’s mistake or malicious action on one network could lead to penalties across all linked systems. That means greater responsibility and potentially higher stakes for participants.

There’s also the issue of interdependence between protocols. If one layer fails or faces an attack, it could affect the others connected through restaking. This creates a chain reaction risk that must be managed through strong smart contract design and clear accountability rules.

Another challenge is centralization pressure. As restaking grows, a few large validators might end up controlling too much of the shared security, reducing the decentralized nature that makes blockchain trustworthy in the first place.

Proper design, transparent governance, and continuous auditing are key to balancing these risks with the benefits restaking brings.

Innovation in blockchain must always go hand in hand with responsibility. Restaking can strengthen networks — but only if trust, fairness, and decentralization remain at its core.

The Future of Restaking and Web3 Infrastructure

Restaking is shaping up to be one of the key building blocks of the next phase of blockchain development. As networks become more modular and interconnected, restaking could serve as the bridge that links different layers, chains, and applications together under a shared security model.

We’re already seeing early signs of this through modular blockchains that separate execution, consensus, and data layers . Restaking can help secure these different components without duplicating resources. 

Also, cross-chain restaking is another promising direction. It allows validators to support multiple networks and applications beyond their original chain. And as DeFi integrations grow, staked assets could move fluidly across platforms, unlocking new ways to earn yield while strengthening the broader ecosystem.

Restaking isn’t just about efficiency, it’s about building a more resilient and interconnected Web3.

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On October 10th, 2025, The Chiliz Group Limited notified a revised version of the CHZ whitepaper to the Malta Financial Services Authority (MFSA). This revised version follows the approval of the Pepper8 governance proposal, which amended the inflation schedule applicable to the CHZ Token via a hard fork. For more information on this governance proposal, please visit https://docs.chiliz.com/chiliz-chain-changelog/governance-proposals-and-decisions/august-2025-pepper8-proposal

In addition, this revised version also reflects the change of name of HX Entertainment Limited, which became The Chiliz Group Limited, applicable as of October 7th, 2025.

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