Network Congestion Protocols

Network Congestion Protocols are mechanisms that allow a blockchain or exchange to gracefully handle periods of high traffic without crashing or becoming unusable. This includes techniques like dynamic fee adjustment, load balancing, and prioritized queueing for critical transactions.

When network usage spikes, these protocols ensure that the most important functions, such as margin maintenance and liquidations, continue to operate. By managing traffic effectively, the protocol prevents the systemic failure that can occur when a network is overwhelmed.

These protocols are essential for the scalability and reliability of decentralized finance, enabling it to support a growing number of users and transactions without compromising on performance or security.