Definition ∞ Rational fault tolerance describes a system’s ability to maintain correct operation even when some participants act in their own economic self-interest, which may include malicious behavior. This concept extends beyond traditional Byzantine Fault Tolerance by assuming participants are rational economic actors, not simply faulty or malicious. Protocols with this property design incentives and penalties to align individual self-interest with the system’s overall health. It is a core design principle in many proof-of-stake blockchains.
Context ∞ The discussion surrounding rational fault tolerance is central to designing robust and secure decentralized economic systems, particularly in proof-of-stake and other incentive-driven protocols. Researchers continuously refine economic models to ensure that honest behavior remains the most profitable strategy for participants. A key debate involves setting appropriate reward and penalty structures to deter collusion or other self-serving actions that could compromise network integrity.
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