On-Chain Computation Efficiency

Definition ∞ On-chain computation efficiency measures how effectively a blockchain network processes and executes smart contract operations and transactions directly on the ledger. This metric assesses the computational resources, such as gas fees and block space, consumed per operation. Higher efficiency permits more complex applications and greater transaction throughput without excessive costs. It is a critical factor for the scalability and usability of decentralized platforms.
Context ∞ News regarding blockchain layer-1 and layer-2 solutions often focuses on improvements in on-chain computation efficiency. Debates center on how different virtual machines and scaling techniques reduce computational overhead. Advancements in this area are crucial for expanding the capabilities and adoption of decentralized applications, driving wider utility.