Technology Reliance

Definition ∞ Technology Reliance refers to the extent to which an organization or system depends on technological infrastructure and solutions for its operations. This dependence includes software, hardware, networks, and data systems, which are essential for core functions. High technology reliance necessitates robust cybersecurity measures, reliable IT support, and effective disaster recovery planning. It is a fundamental aspect of modern business and finance.
Context ∞ In the digital asset industry, technology reliance is absolute, as cryptocurrencies and blockchain systems are inherently technological constructs. News often highlights the critical importance of secure and resilient technology infrastructure for cryptoasset firms, from exchange platforms to custodial services. Any failure in underlying technology, whether due to cyberattacks, software bugs, or infrastructure outages, can lead to significant financial losses and operational disruptions, underscoring the need for advanced technological controls.