On Chain Structural Weakness

Definition ∞ On chain structural weakness refers to inherent vulnerabilities or inefficiencies within a blockchain network’s fundamental design or operational mechanics, as evidenced by data recorded on the ledger. These weaknesses can compromise network security, scalability, or decentralization. Examples include excessive centralization of mining power or persistent congestion issues.
Context ∞ For digital assets, identifying on chain structural weakness is crucial for assessing the long-term viability and security of a protocol. News reports often analyze metrics like validator distribution, transaction throughput, or fee mechanisms to highlight these issues. Addressing such weaknesses through protocol upgrades or community governance is a constant focus in the evolution of blockchain technology.