Compute Layer

Definition ∞ A Compute Layer in blockchain architecture is the component responsible for executing smart contracts and processing transactional logic. It acts as the operational engine where decentralized applications (dApps) run and state changes occur. This layer handles the complex computational operations that define a blockchain’s functional capabilities. It is fundamental to the utility of programmable blockchains.
Context ∞ The scalability and efficiency of compute layers present central challenges in blockchain development, driving the creation of various scaling solutions like Layer 2 networks and sharding. News frequently covers advancements in these layers, focusing on improvements in transaction throughput, reductions in processing costs, and enhancements to developer environments. These developments support broader adoption of decentralized technologies.