Average fee represents the mean cost associated with processing a transaction on a blockchain network. This metric is derived by dividing the total transaction fees collected over a period by the number of transactions executed during that same period. It provides a generalized measure of network congestion and the economic cost of interacting with the distributed ledger. Fluctuations in this value directly influence user experience and application viability.
Context
The average fee is a central point of discussion concerning blockchain scalability and accessibility. Elevated average fees, particularly on networks like Ethereum, can pose a barrier to entry for smaller transactions and restrict the adoption of decentralized applications. A critical future development involves the effectiveness of layer-2 solutions and protocol upgrades specifically aimed at reducing these transactional costs, thereby enhancing network utility and expanding its user base.
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