Definition ∞ A single point of failure refers to a component within a system whose malfunction or compromise would cause the entire system to cease operating or become vulnerable. In decentralized systems, this typically arises from reliance on a centralized server, a single smart contract, or a limited set of controlling entities. Identifying and eliminating such points is a fundamental goal of decentralized architecture. It represents a critical vulnerability that undermines system resilience.
Context ∞ News reports often highlight single points of failure when discussing security audits, decentralized application vulnerabilities, or the inherent risks of certain blockchain designs. This concept is crucial for assessing the robustness and censorship resistance of any digital asset system. Debates revolve around designing truly distributed protocols that minimize or remove these critical dependencies. Eliminating single points of failure is a key objective in achieving genuine decentralization.
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