Bandwidth efficiency refers to the optimization of data transmission over a network to maximize the amount of useful information conveyed per unit of capacity. It is a measure of how effectively a communication channel is utilized to send data. High bandwidth efficiency means more data can be sent or received with less strain on the network infrastructure.
Context
In the context of blockchain technology and digital assets, bandwidth efficiency is crucial for transaction throughput and network scalability. Protocols that exhibit superior bandwidth efficiency can process a greater volume of transactions more rapidly, reducing confirmation times and network congestion. Discussions around network upgrades or new blockchain architectures frequently center on their potential to enhance bandwidth efficiency, impacting user experience and the viability of decentralized applications.
Merklized transactions redefine blockchain data handling, allowing granular verification and redaction for enhanced privacy and compliance without altering core immutability.
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