Verification Failure

Definition ∞ Verification failure occurs when a system or process is unable to confirm the authenticity, integrity, or validity of data, a transaction, or a user’s identity. In blockchain contexts, this could mean a transaction not adhering to protocol rules, an invalid digital signature, or a Know Your Customer (KYC) check not passing. Such failures can halt operations or indicate potential security issues. It signals a discrepancy or an absence of required proof.
Context ∞ Verification failures can appear in cryptocurrency news when discussing network congestion leading to dropped transactions, or issues with smart contract execution. In a regulatory context, verification failure might refer to an inability to confirm a user’s identity, resulting in account suspension on an exchange. These failures often prompt investigations into underlying system stability or compliance protocols, highlighting critical operational bottlenecks.