Definition ∞ Network demand represents the total user and application activity on a blockchain or decentralized network. This includes the aggregate volume of transactions, smart contract calls, and data storage requests submitted by participants over a specific period. High network demand indicates strong utility and adoption of the underlying protocol. It directly influences network congestion and transaction fees.
Context ∞ Network demand is a crucial metric for evaluating the health and growth of a blockchain ecosystem. Discussions frequently address the challenges of scaling networks to accommodate surges in demand without compromising performance or increasing costs. A critical future development involves the widespread adoption and effectiveness of Layer 2 solutions and other scaling technologies, ensuring networks can sustainably handle increasing user activity and transaction loads.
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