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Network congestion management Meaning

Network congestion management refers to the specific protocols and mechanisms a blockchain uses to handle periods of high traffic. Since block space is scarce, the network needs a fair way to decide whose transaction gets in.

The most common method is a Fee Market (auction). Users bid for space; highest bidder wins.

While simple, this prices out poor users. More advanced management includes Block Size Increases (controversial due to centralization risks) or Sharding (splitting the traffic into parallel lanes).

Layer 2 solutions are arguably the ultimate form of congestion management. They act like "Express Lanes" or "Bypasses" that take traffic off the main highway (Layer 1).

By processing transactions off-chain and only settling the final result, they allow the ecosystem to handle thousands of times more volume without clogging the main settlement layer.

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