A backoff strategy refers to a method used to manage transactions or actions that fail or encounter issues. When a transaction does not go through, instead of immediately trying again, the system waits for a predetermined period before making another attempt.

This waiting period typically increases with each failure, allowing the network time to recover and reducing congestion. This approach helps prevent overwhelming the network with repeated requests, which can further exacerbate delays or errors.

By spacing out retry attempts, users are more likely to successfully complete their transactions when the network is less congested. Backoff strategies can vary in their implementation, with some using exponential backoff (where the wait time doubles after each failed attempt) and others employing linear or random wait times.

Overall, this methodology enhances the efficiency and reliability of transaction processing, promoting a smoother user experience.