Onchain Aggregation

Definition ∞ Onchain Aggregation is the process of combining multiple individual transactions or data points into a single, larger transaction that is then recorded on a blockchain. This method aims to enhance network efficiency by reducing the total number of individual entries that need to be processed. It also typically lowers transaction costs for users. This optimizes blockchain resource usage.
Context ∞ Onchain aggregation is a widely adopted technique in various blockchain scaling solutions and decentralized finance protocols to improve throughput and reduce gas expenses. By batching operations, networks can process more actions with fewer overall transactions, alleviating congestion. News often highlights advancements in aggregation methods as critical steps toward achieving greater scalability and making decentralized applications more accessible.