Definition ∞ Performance bottlenecks are points within a system or process where the capacity is limited, causing delays or reductions in overall efficiency. In blockchain technology, these can include slow transaction processing, high latency, or excessive computational demands. Identifying and resolving these constraints is essential for scalability and user experience. They hinder the smooth operation of decentralized applications.
Context ∞ Performance bottlenecks are a constant challenge in blockchain development, particularly as networks strive for higher transaction throughput and broader adoption. Debates often concern the trade-offs between decentralization, security, and scalability when addressing these limitations. Critical future developments involve layer-2 scaling solutions, sharding, and more efficient consensus mechanisms to alleviate these system constraints.
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