Formal Verification

Definition ∞ Formal verification is a mathematical technique used to prove the correctness of software or hardware systems. In the context of digital assets and blockchain, it involves rigorously checking smart contracts and protocol code to ensure they function exactly as intended and are free from critical vulnerabilities. This process provides a high degree of assurance regarding system integrity.
Context ∞ Formal verification is gaining prominence as a crucial security measure for smart contracts and blockchain protocols, particularly following high-profile exploits. The current debate centers on the scalability and cost-effectiveness of applying these rigorous methods to complex systems. Industry participants are increasingly adopting formal verification techniques to build trust and mitigate risks associated with decentralized applications.