Protocol Capacity

Definition ∞ Protocol Capacity refers to the maximum operational limit of a blockchain network or decentralized application in terms of transaction volume or data processing. This metric indicates how many operations a system can handle within a given timeframe without experiencing significant degradation in performance. It is a critical factor for scalability and user experience. Exceeding protocol capacity can lead to network congestion and increased transaction costs.
Context ∞ Optimizing protocol capacity is a central challenge for blockchain developers striving to support widespread adoption and complex decentralized applications. Discussions often focus on implementing scaling solutions and improving underlying network architectures. Future advancements aim to significantly expand the transactional capabilities of protocols, making them more efficient and responsive to user demand.