Definition ∞ Amortized efficiency describes the average performance of an algorithm over a sequence of operations. While individual operations might incur high costs, the overall cost distributed across many operations becomes low. This concept is crucial for evaluating the long-term operational expense of data structures and algorithms in computer science. It provides a more realistic assessment of performance than worst-case analysis alone.
Context ∞ In blockchain and distributed ledger technologies, amortized efficiency is relevant for assessing the cost of certain cryptographic operations or state updates. Protocols aim for high amortized efficiency to maintain economic viability and network throughput as transaction volume grows. Optimizations often involve grouping operations or off-chain processing to reduce per-operation costs over time.
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