Information Theory

Definition ∞ Information theory is a mathematical framework for quantifying, storing, and communicating data. It provides principles for understanding the fundamental limits of data compression and reliable data transmission over noisy channels. In digital assets, concepts from information theory are crucial for designing efficient cryptographic protocols, secure communication, and data availability schemes in decentralized networks. This field helps optimize the storage and transfer of transaction data across distributed ledgers.
Context ∞ Discussions of information theory appear in crypto news when technical advancements in data compression for blockchains or the security of communication channels are reported. Its application is particularly relevant in zero-knowledge proofs and data availability layers, where minimizing data size while preserving verifiability is key. Ongoing research applies its principles to enhance the efficiency and resilience of decentralized systems.