System Fragility

Definition ∞ System fragility describes the inherent susceptibility of a system, such as a blockchain network or a decentralized finance protocol, to failure, disruption, or collapse under stress. This condition arises from architectural weaknesses, interconnected dependencies, or insufficient resilience mechanisms. System fragility can manifest as cascading liquidations, oracle failures, or smart contract exploits. It represents a significant operational and financial risk.
Context ∞ Discussions around system fragility are prominent in the context of decentralized finance, particularly after periods of market volatility or major security incidents. Developers continuously work to build more robust and resilient protocols through redundancy, formal verification, and rigorous testing. Addressing system fragility is crucial for the long-term viability and security of digital asset ecosystems.