Game theory is a mathematical framework that helps analyze decision-making among multiple participants, where the outcome for each depends on the actions of others. In the realm of cryptocurrency, it plays a crucial role in understanding how users behave within decentralized networks.Participants, such as miners, validators, and traders, often face strategic choices that can affect not just their own outcomes but also influence the entire network’s security and functionality. For example, miners must decide whether to cooperate by contributing resources or to act selfishly, risking network stability.Additionally, game theory helps to design consensus mechanisms, ensuring that participants follow the rules. Trustless systems rely on these mechanisms to incentivize honest behavior while discouraging malicious actions. By studying these interactions, developers can create more robust and secure protocols, optimizing user incentives and improving the overall health of the ecosystem. This approach fosters trust and cooperation, which are essential for the success of decentralized currencies.