Agent-Based Simulation

Definition ∞ Agent-based simulation is a computational method that models complex systems through the interactions of autonomous agents. These simulations allow for the observation of emergent system behaviors resulting from individual agent actions and their environmental interactions. In digital asset markets, this approach helps model participant behavior, such as traders or protocol users, to predict market movements or network congestion. It offers a method to assess system robustness under various conditions.
Context ∞ Agent-based simulations are currently significant for testing new blockchain protocols or decentralized finance mechanisms prior to deployment. They assist in evaluating economic stability and potential vulnerabilities of digital asset systems. Researchers and developers utilize these models to understand network effects and anticipate responses to policy changes within crypto ecosystems.