Business Logic

Definition ∞ Business logic refers to the set of rules, processes, and operations that define how an organization functions and how its data is managed. In the context of digital assets and blockchain, it dictates the specific behaviors and interactions within a decentralized application or smart contract. This logic governs transactions, asset transfers, and the execution of predefined conditions according to the protocol’s design. It is the operational framework that determines the outcomes of various actions within a digital ecosystem.
Context ∞ Discussions regarding business logic in crypto news frequently pertain to the security and efficiency of smart contracts. Vulnerabilities in the implementation of business logic within smart contracts have led to significant financial losses, prompting increased scrutiny from developers and auditors. The ongoing effort to formalize and verify smart contract business logic aims to prevent exploits and ensure predictable, secure execution of digital agreements.