Definition ∞ Economic bandwidth represents the total capacity of a blockchain network to process and finalize transactions, measured by the collective value of fees and rewards paid to network validators or miners. This represents the economic throughput a chain can sustain, influencing its ability to support a wide array of applications and user activity. Greater bandwidth typically implies a more robust and capable network. It relates directly to network security and resource allocation.
Context ∞ Economic bandwidth is a critical factor in evaluating the long-term scalability and security of blockchain protocols. Debates often address how different fee mechanisms and consensus algorithms impact this capacity. Monitoring changes in economic bandwidth helps assess a network’s ability to accommodate increasing demand and resist attacks.
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