Definition ∞ A computation bottleneck signifies a system component that limits overall processing speed or capacity. In blockchain technology, this often occurs when the volume of transactions or the complexity of smart contract operations overwhelms the network’s processing capabilities. Such constraints lead to slower transaction confirmations and elevated operational costs. This limitation directly impacts network efficiency and scalability.
Context ∞ Overcoming computation bottlenecks is a primary focus in blockchain development, driving innovation in layer-2 scaling solutions and more efficient consensus mechanisms. Current efforts involve zero-knowledge proofs and sharding to offload computational burden from mainnets. The ongoing pursuit of higher transaction throughput is directly related to resolving these processing limitations for wider application.