How Does Network Congestion Impact the Usability of Non-Custodial Exchanges?
Network congestion has a significant negative impact on the usability of non-custodial exchanges. When a blockchain is congested, there is a high demand for limited block space, which leads to a sharp increase in gas fees.
This can make simple trades prohibitively expensive for many users. Additionally, transaction confirmation times become much longer and more unpredictable.
In extreme cases, transactions can get "stuck" or fail if the gas fee paid is too low, creating a frustrating and unreliable user experience.
Glossar
Transaction Confirmation Times
Latency ⎊ Transaction confirmation times, particularly within cryptocurrency networks, represent the interval between transaction initiation and its immutable inclusion within a distributed ledger.
Network Congestion
Latency ⎊ Network congestion within cryptocurrency, options trading, and financial derivatives manifests as increased latency, directly impacting execution speeds and potentially leading to adverse selection against slower participants.
Usability
Interface ⎊ Within cryptocurrency derivatives, options trading, and financial derivatives, interface signifies the seamless interaction between the user and the trading platform, extending beyond mere visual design to encompass the efficiency of order execution, data presentation, and risk management tools.