Definition ∞ Fault-dependent cost refers to expenses incurred in a decentralized system that are directly proportional to the number or severity of faults, errors, or malicious actions occurring within the network. These costs can manifest as increased transaction fees, slower processing times, or economic penalties imposed on misbehaving participants. Such expenses serve as deterrents against undesirable behavior and mechanisms for network recovery. This metric is crucial for economic security analysis.
Context ∞ Fault-dependent costs are often discussed in the context of blockchain security models, particularly when evaluating consensus mechanisms and economic incentives. News articles might cover protocol changes designed to adjust these costs, or analyses of network attacks that highlight the financial implications of system failures. Understanding these costs is essential for assessing a network’s economic security and operational sustainability.
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