Network capacity in cryptocurrency refers to the ability of a particular blockchain network to process transactions efficiently and handle increased user activity without experiencing delays or congestion. It is a measure of how much data can be transmitted within the network within a given time frame.
A network with high capacity can handle a larger number of transactions per second, making it more scalable and user-friendly. This is crucial for popular cryptocurrencies with a high volume of daily transactions, as it ensures that users can send and receive funds quickly and without interruption.
On the other hand, a network with low capacity may struggle to process a large number of transactions simultaneously, leading to delays and higher transaction fees. This can result in a poor user experience and limit the potential growth of the cryptocurrency.
Developers and network operators continuously work to increase the capacity of blockchain networks through optimizations and upgrades to maintain a smooth and efficient user experience for all participants.
