Economic Congestion

Definition ∞ Economic congestion describes a state where high demand for a network’s resources outstrips its available capacity, leading to increased costs and delays. In blockchain contexts, this typically manifests as elevated transaction fees and extended confirmation times as users compete for limited block space. It directly impacts the usability and affordability of decentralized applications.
Context ∞ The ongoing challenge of economic congestion is a persistent topic in blockchain discourse, driving innovation in scaling solutions and transaction fee mechanisms. Current developments often focus on layer-2 technologies, fee market adjustments, and alternative consensus designs to alleviate network pressures and improve user experience.