Knowing The Scalability Concept Before Making Cryptocurrency Investments

In the first place when bitcoin gained traction in the crypto industry as a digital currency, there were supporters mainly from the Silicon Valley that focused on this currency as being more efficient and faster for making transactions but there are some differences on each cryptocurrency concept. However, the reality that the technology behind this currency is flawed as compared to PayPal’s centralised system is one such aspect that people are unaware of.

Various businesses have been seen attaining benefits through this technology which is other considered a catalyst for the development of software. There are many advantages associated with this technology such as transparency, immutability etc, but one such important amongst all of them is its decentralised nature. Though numerous benefits are being incurred with the help of this technology, the main problem with this technology is its scalability issue which might be a problem for many business start-ups in their starting times. 

Scalability is among the most critical issues in blockchain, and scalability has become a subject of both business professionals as well as academic scholars from Bitcoin’s inception. Here we will know about the scalability issues with blockchain technology along with alternative solutions and analyse their advantages and downsides.

Blockchain Scalability:

Scalability means the ability of a computer device to manage work in increased quantities. When it comes to scalability, with a larger quantity of data, it becomes difficult for blockchain to scale efficiently. In such circumstances, the blockchain is unable to take such an amount of data handled within the blockchain which makes the data processing much delayed.

Scalability Problems With Blockchain

One of the main major impediments to developing public blockchain in actual business context is scalability. This problem arises when there are increased quantities of transactions as well as nodes within a blockchain to facilitate the transaction. Many major blockchains such as bitcoin and Ethereum are those blockchains that have got this issue. The reason for such an issue is the computational activity that needs to be carried on for validating transactions.

As a consequence, public blockchains require massive computing power, elevated internet access, and high-capacity storage space continuously.

Why Scalability Plays A Vital Role In Blockchain

Within a blockchain network, one of the significant attributes is scalability since it is related to the capacity of a network to accommodate higher transaction volume. Hence, for the expansion of blockchain in the future scalability is very vital. The efficiency of a properly scalable blockchain cannot be compromised with the growing amount of applications and blockchain technology acceptance. Blockchains having lower functionality as a result of growing demand potentially can have a dearth of scalability.

However, the fact can not be ignored that increased and efficient scalability can be obtained but at the cost of compromising security as well as decentralised nature. However the only option to compete with our old outdated and inefficient system, only blockchain technology can be an answer.

Some Solution To Blockchain Scalability

  •   The first solution would be the first layer solution. There are many sub-solutions within this. Such as sharding, segWit, hard forks etc. All these sub-options might come fruitful to deal with scalability issues.
  •   Then we have second-layer scalability solutions. Here we have options like lightning network, plasma chain, side chains etc. that we can opt for to remove this issue.
  •   Lastly, we have consensus mechanisms that are different for some cryptocurrencies. Such as staking etc. that can provide you with a better solution to deal with scalability problems.


I hope to have cleared your concept concerning scalability and why it is important for the crypto industry. Some solutions as well have been provided in this article to deal with the problem of scalability.


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