Load balancing refers to distributing network or application traffic across multiple servers. In cryptocurrency, a Load Balancing Layer helps manage the demand on blockchain networks or decentralized applications by ensuring that users’ requests are evenly spread among available nodes. This distribution enhances performance, reduces latency, and prevents any single server from becoming a bottleneck. When multiple users access a blockchain or platform simultaneously, the Load Balancing Layer can direct incoming traffic to less busy servers. By efficiently managing resources, this layer enhances scalability and improves the overall user experience, especially during peak usage times. It contributes to maintaining the stability and availability of a network, which is crucial for user satisfaction and trust. Overall, implementing a Load Balancing Layer can be vital for the efficient functioning of decentralized systems, allowing them to handle high traffic volumes smoothly.