With [[Proof of Work]] [[Consensus Mechanism|consensus mechanisms]], thermodynamic cost refers to the energy expenditure associated with validating transactions and mining new blocks. This cost arises from the computational work performed by [[Mining|miners]], who race to guess large numbers written cryptographically inside of blocks. These computations require significant processing power, which in turn requires a substantial amount of energy, thus the "thermodynamic" cost. In terms of tokenomics, this energy cost is a crucial factor in determining the profitability of mining, as miners must balance the reward for mining a block (in the form of tokens) against the cost of the energy used. Furthermore, the thermodynamic cost contributes to the security of the network. The high energy cost acts as a deterrent against malicious activity. For example, a [[51% Attack]] would require an immense amount of computational power and therefore energy, making such attacks economically unfeasible in most cases.