Crypto Learn : Scalability of Blockchain While blockchain tec | Cryptoverse

Crypto Learn : Scalability of Blockchain

While blockchain technology is proving to be a new foundation of the global economy, its underlying structure of decentralised networks is confronted with a unique dilemma known as the Blockchain Trilemma: balancing decentralisation, security, and scalability within a blockchain infrastructure.

Blockchain decentralisation refers to the meaningful distribution of computing power and consensus throughout a network, whereas security refers to the defences of a blockchain protocol against bad actors and network assaults. Both are deemed non-negotiable for a blockchain network's operation.

Scalability, or a blockchain network's capacity to accommodate high transactional flow and future development, is also critical. Scalability is critical because it is the only way for blockchain networks to compete with older, centralised systems that have fast settlement times. A frequent example to demonstrate the scalability gap is that Bitcoin executes between 4 and 7 transactions per second (TPS). Visa, on the other hand, handles thousands of TPS applications. Blockchain technology must match or exceed these high levels of scalability in order to compete with these existing systems. There is currently an entire sub-sector of the blockchain business dedicated to enhancing scalability.

Fortunately, a new generation of blockchains and scaling solutions designed particularly to address this transaction-capacity issue is rapidly improving blockchain scaling limitations and making significant progress. These projects handle scalability in two ways: layer-1 scaling solutions and layer-2 scaling solutions.