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Theoretical Foundation

Definition

A Theoretical Foundation refers to the underlying set of principles, concepts, and mathematical models that provide the intellectual basis for a particular blockchain technology or digital asset protocol. This foundation establishes the logical coherence and validity of the system’s design, often drawing from cryptography, distributed systems theory, and game theory. It explains why a protocol functions as intended and predicts its behavior under various conditions. A robust theoretical foundation is essential for the security and reliability of decentralized systems.