Network capacity refers to the maximum volume of transactions or data a blockchain network can process within a given period. This metric is critical for assessing a network’s scalability and its ability to handle increasing user demand. Higher capacity generally translates to faster transaction times and lower fees. Protocols employ various mechanisms to augment their throughput.
Context
The ongoing debate surrounding network capacity is a central theme in discussions about blockchain scalability and user experience. Developers are continually exploring and implementing solutions to increase transaction throughput and reduce latency. Key challenges involve balancing decentralization, security, and performance. Future advancements are anticipated in layer-2 scaling solutions and more efficient consensus mechanisms to address current limitations.
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