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One of the benefits of updating software is to remove security vulnerabilities present in older versions.

Does use of Nix encourage insecurity by making it easy to use several outdated copies of each piece of software simultaneously?

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No, because updating the vulnerable package will trigger rebuilds of the packages that depend on it. When the user upgrades, they will get the new, more secure version.

Agreed, though updating your system shouldn't break other packages. If those other packages are a security risk then they too should be updated. Once done, garbage collect that which is not used.

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