Definition ∞ Overhead factor reduction involves minimizing the additional computational, storage, or communication resources consumed by a system beyond what is strictly necessary for its core function. In blockchain networks, this means streamlining processes like transaction validation, data storage, and consensus messaging. The goal is to improve overall efficiency and scalability. Reducing overhead directly contributes to lower transaction fees and faster processing times.
Context ∞ Efforts toward overhead factor reduction are a constant focus for blockchain developers aiming to enhance network performance and reduce operational costs. News frequently covers protocol upgrades and layer-2 solutions designed to achieve these efficiencies. Such reductions are crucial for making decentralized technologies more accessible and practical for widespread adoption.