Blockchain congestion occurs when a network experiences a high volume of transactions. This situation leads to delays in processing and confirms transactions, as miners or validators can only handle a limited number of transactions in a given time frame. When congestion happens, users may notice longer wait times for their transactions to be confirmed.

To prioritize their transactions, they might increase transaction fees, which can lead to a bidding war where only those willing to pay higher fees get quicker confirmations. This creates an uneven playing field, where users with more resources can bypass delays. The effects of congestion can result in increased transaction fees, slower processing times, and overall frustration among users.

Networks may also face challenges in scalability, as high demand can outstrip the network’s capacity to handle transactions efficiently. To address congestion, some blockchains are exploring solutions such as layer 2 scaling, sharding, or protocol upgrades. These measures aim to improve the network’s ability to handle larger volumes of transactions without compromising efficiency or user experience.