Cost Efficiency

Definition ∞ Cost efficiency in digital assets refers to minimizing the expenses associated with transactions, operations, or network participation. This concept is crucial for the viability and broad acceptance of blockchain technologies. Lower transaction fees and reduced energy consumption contribute to greater cost efficiency. It directly impacts user experience and developer activity within decentralized applications.
Context ∞ Achieving cost efficiency is a primary focus for many blockchain protocol upgrades and Layer 2 solutions. News reports frequently highlight new technologies designed to lower gas fees and processing costs, such as rollup solutions. The ongoing pursuit of greater cost efficiency seeks to make digital asset transactions more accessible and practical for everyday use.