Base Layer Capacity

Definition ∞ Base layer capacity denotes the maximum number of transactions or operations a blockchain’s foundational network can process within a specific timeframe. This metric is a primary indicator of a network’s ability to scale and handle user demand. Limitations in this capacity can result in network congestion and higher transaction costs. Enhancements to base layer capacity often involve changes to block size, block time, or consensus mechanisms.
Context ∞ The state of base layer capacity frequently becomes a central topic during periods of high network activity, as it directly impacts user experience and transaction finality. Ongoing debates concern the optimal balance between scalability, decentralization, and security at the base layer. Future developments will likely focus on layer-two solutions and sharding technologies designed to extend the processing capabilities of these foundational protocols without compromising their core properties.