Transaction Processing

Definition ∞ Transaction processing refers to the sequence of operations required to validate and record a digital asset transfer on a blockchain. This involves verifying the sender’s authorization, checking for sufficient funds, and including the transaction in a new block. Efficient transaction processing is a key determinant of a blockchain’s usability and performance.
Context ∞ Transaction processing speed and cost are persistent topics of discussion in cryptocurrency news, directly impacting user experience and the viability of various blockchain applications. Debates often arise regarding the throughput limitations of different networks and the effectiveness of scaling solutions. The efficiency of this process is a critical factor in the adoption and utility of digital assets for everyday commerce.