Computation

Definition ∞ Computation refers to the process of performing calculations and executing algorithms, often utilizing specialized hardware or software. In the realm of digital assets, computation is fundamental to blockchain consensus mechanisms, transaction validation, and the execution of smart contracts. The resources dedicated to computation, such as processing power, directly influence the security and efficiency of a network. Different computational models, like Proof-of-Work or Proof-of-Stake, define how this process is managed.
Context ∞ News coverage frequently highlights advancements in computational efficiency for blockchain networks, particularly concerning energy consumption and transaction throughput. Debates often arise regarding the computational requirements for mining or staking, and their economic implications. The development of new cryptographic techniques, such as zero-knowledge proofs, also directly relates to novel forms of computation within the space.