Network Saturation

Definition ∞ Network saturation occurs when a blockchain network reaches its maximum capacity for processing transactions, leading to increased transaction fees and slower confirmation times. This state indicates that the demand for block space exceeds the network’s current throughput capabilities. It can hinder user experience and limit the practical utility of a decentralized application.
Context ∞ News often reports on network saturation during periods of high market activity or intense demand for specific decentralized applications, such as NFT mints or DeFi protocol interactions. These events frequently spark discussions about scalability solutions, layer-two technologies, and alternative blockchain architectures designed to alleviate congestion. Addressing network saturation is a critical challenge for the widespread adoption of digital assets.