Using Intersection Observer with multiple thresholds is the most efficient way to implement scroll-based progress indicators because: 1) It provides precise progress tracking without the overhead of scroll events, 2) intersectionRatio directly corresponds to the visible percentage of the element, 3) The browser optimizes intersection calculations, reducing performance impact, 4) It works reliably across different devices and screen sizes. The code shows how to create 101 thresholds for smooth 1% increments in progress tracking.