Security Characterization

Definition ∞ Security characterization involves the systematic process of identifying, evaluating, and documenting the protective features and vulnerabilities of a digital system or protocol. This analysis assesses the system’s resistance to various threats and its ability to maintain data integrity and confidentiality. It provides a comprehensive understanding of the security posture. The outcome informs risk management and mitigation strategies.
Context ∞ In the digital asset domain, security characterization is crucial for auditing smart contracts, assessing blockchain protocol robustness, and evaluating the safety of decentralized applications. News reports often highlight the results of security audits or exploit analyses, which stem from such characterizations. The continuous process of security characterization is essential for maintaining trust and preventing financial losses in the rapidly evolving crypto landscape. It helps users and developers understand the risks involved.