A bottleneck refers to a point in a system where the flow of data or transactions is restricted, leading to delays and inefficiencies. In the context of cryptocurrencies, this can occur when the number of transactions exceeds the network’s processing capability.For example, when a large number of users attempt to buy or sell at the same time, the network might struggle to validate and record all these transactions promptly. This can result in longer waiting times for confirmations and increased transaction fees, as users may offer higher fees to prioritize their transactions.Bottlenecks can stem from various factors, including limited block size, slow block generation times, or high network congestion. Improving scalability, such as through upgrades like the Lightning Network or Ethereum’s move to proof of stake, aims to alleviate these bottlenecks and enhance overall performance.Ultimately, addressing bottlenecks is crucial for maintaining user confidence and ensuring that cryptocurrency networks can handle increasing demand as adoption grows.