Transaction Buffer

Definition ∞ A transaction buffer is a temporary storage area where transaction data is held before being processed or committed to a permanent ledger. This mechanism helps manage the flow of transactions, particularly during periods of high network activity or when processing needs to be batched. It can improve system efficiency and resilience by smoothing out data input and output operations. This temporary holding area is vital for managing throughput.
Context ∞ In blockchain networks, transaction buffers play a role in managing the mempool, where pending transactions await inclusion in a block. The size and management of these buffers can significantly impact network congestion and transaction fees. Discussions often involve optimizing buffer handling to improve network scalability and user experience during peak demand for digital asset transfers.