Performance Overhead

Definition ∞ Performance overhead describes the additional computational resources, time, or energy consumed by a system beyond its core functional requirements. In blockchain, this often arises from the need for decentralization, cryptographic security, or redundant data storage. It represents the cost incurred to maintain specific system properties like integrity or censorship resistance. This metric is a key consideration in evaluating the efficiency of digital asset protocols.
Context ∞ Crypto news frequently addresses performance overhead in discussions about blockchain scalability and efficiency. The current situation involves developers working to optimize protocols to reduce the computational burden associated with high transaction volumes and complex smart contracts. A key debate centers on finding optimal trade-offs between security, decentralization, and throughput. Future developments will aim to minimize this overhead through advancements in cryptography and network architecture.