Definition ∞ Network fundamentals refer to the core underlying characteristics and operational metrics that determine the health, security, and long-term viability of a blockchain network. These include factors such as transaction throughput, decentralization level, active user count, developer activity, and security mechanisms. They provide a basis for assessing a digital asset’s intrinsic value and future potential. Strong network fundamentals indicate a robust and sustainable ecosystem.
Context ∞ Analysis of network fundamentals is crucial for investors and participants seeking to understand the long-term prospects of various digital assets beyond short-term price fluctuations. The situation involves continuous evaluation of protocol upgrades, user adoption trends, and technological advancements. A key debate addresses the appropriate metrics for measuring decentralization and network security effectively. Future research will likely refine these fundamental indicators to provide more comprehensive assessments of blockchain project viability.
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