Definition ∞ 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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