Computational Bottleneck

Definition ∞ A computational bottleneck refers to a specific component or process within a system that limits the overall performance, speed, or throughput of operations due to its processing capacity. In blockchain technology, this often pertains to the speed at which transactions can be processed and verified across the network. It represents a constraint on scalability, preventing the system from handling a greater volume of activity. Addressing such limitations is crucial for enhancing system efficiency and responsiveness.
Context ∞ Computational bottlenecks are a persistent challenge in many blockchain networks, directly impacting transaction speeds and network costs, especially during periods of high demand. Solutions such as layer-2 scaling protocols and sharding aim to alleviate these constraints and improve network throughput. Observing advancements in these scaling technologies will be essential for understanding the future performance capabilities of various digital asset platforms.