Definition ∞ Labeled systems are mathematical models, often represented as labeled transition systems, where transitions between states are associated with specific actions or events. These labels provide semantic information about the operations occurring within the system. They are used in formal verification to precisely describe and analyze system behavior. Such models aid in understanding complex processes.
Context ∞ Within blockchain and smart contract development, labeled systems can assist in formally specifying and verifying the behavior of decentralized protocols. Researchers use these models to prove properties like safety and liveness for critical components. The application of labeled systems helps improve the reliability and security of digital asset infrastructure.