Computation Cost

Definition ∞ Computation cost refers to the resources expended to perform a computational operation within a digital system. In blockchain contexts, this typically includes the energy, processing power, and time required to execute transactions or smart contract functions. These costs are often denominated in a network’s native cryptocurrency, such as gas fees on Ethereum. Minimizing these costs is a significant engineering objective.
Context ∞ Computation cost is a central discussion point in blockchain scalability, particularly concerning networks experiencing high transaction volumes. Debates often focus on layer-2 solutions and alternative consensus mechanisms designed to lessen these expenses and enhance network throughput. A critical future development involves advancements in zero-knowledge proofs and sharding technologies, which promise to substantially reduce computation costs and make decentralized applications more accessible and efficient for a broader user base.