Network Efficiency

Definition ∞ Network efficiency refers to the performance characteristics of a communication network, particularly in terms of speed, throughput, and resource utilization. For blockchains, this relates to how quickly and cost-effectively transactions can be processed and confirmed. High network efficiency is vital for scalability and user experience.
Context ∞ Network efficiency is a critical area of focus for blockchain development, especially concerning transaction fees and confirmation times. Current research and development efforts are concentrated on scaling solutions, such as layer-two protocols and alternative consensus mechanisms, to improve throughput and reduce costs. Achieving greater network efficiency is seen as paramount for broader adoption of decentralized applications and digital assets.