Summary: Blockchain network congestion occurs when transaction volumes exceed the capacity of a blockchain, causing increased wait times, higher fees, and reduced reliability.
What blockchain congestion is:
- When transaction volumes exceed a blockchain's capacity.
- Leads to backlog of unconfirmed transactions.
- Limited transaction throughput due to constraints like block size.
- Sudden spikes in activity, such as popular token launches.
- Increased wait times for transactions.
- Exponentially higher fees as users compete.
- Impacts availability and security.
Congestion on Bitcoin and Ethereum:
- Both saw congestion during peak hype cycles with long wait times.
- Layer 2 protocols, sharding, tweaks to block size and time.
- Critical for improving blockchain scalability and adoption.