Consensus Efficiency

Definition ∞ Consensus efficiency measures how effectively a distributed network reaches agreement on the state of its ledger with minimal resource expenditure. This metric considers factors such as transaction throughput, finality time, and the energy or computational power required per validated block. High efficiency is paramount for scalable and cost-effective blockchain operations.
Context ∞ Reports on consensus efficiency frequently analyze different blockchain protocols, comparing their performance metrics and resource demands. News may highlight upgrades or new consensus algorithms designed to improve speed and reduce operational costs. Evaluating consensus efficiency is vital for understanding a network’s capacity to handle growing transaction volumes and its environmental impact.