Definition ∞ Computational cost refers to the resources, primarily processing power and time, required to execute a specific operation or algorithm within a digital system. In blockchain and cryptocurrency contexts, this often relates to the energy and hardware necessary for transaction validation or smart contract execution. High computational cost can impact network scalability and transaction fees. It represents the overhead associated with maintaining network integrity and processing data.
Context ∞ The computational cost of blockchain operations, particularly proof-of-work consensus mechanisms, is a significant point of discussion concerning environmental impact and network efficiency. Efforts to reduce this cost are a major driver for advancements like proof-of-stake and zero-knowledge proofs. A key debate centers on the trade-offs between security, decentralization, and the computational resources required. Future developments aim to minimize these costs to support wider adoption and higher transaction throughput for digital assets.
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