Agent Based Model

Definition ∞ An agent based model simulates the actions and interactions of autonomous individuals within a system. In cryptocurrency, these models help analyze complex market behaviors, network dynamics, and protocol performance by simulating how various participants react to changing conditions. This approach allows for the study of emergent phenomena that arise from localized interactions rather than global rules. It offers a bottom-up perspective on system evolution.
Context ∞ Agent based models are increasingly utilized in digital asset research to forecast market trends, assess protocol stability, and evaluate the impact of regulatory interventions. Discussions around these models often focus on their predictive accuracy and their capacity to represent realistic user behaviors. Their application aids in understanding the systemic risks and potential growth trajectories of new blockchain architectures.