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State Compression Factor

Definition

The state compression factor quantifies the reduction in the amount of data required to represent the current state of a blockchain or distributed ledger, compared to its uncompressed form. This factor indicates how efficiently a protocol can store and transmit state information, which includes account balances, smart contract data, and other critical network parameters. A higher state compression factor implies reduced storage demands and improved synchronization speeds for network nodes. It is a key metric for evaluating blockchain scalability.