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Showing posts with the label Blockchain Scalability Blockchain Scalability Blockchain Scalability Blockchain Scalability

Blockchain Scalability

Blockchain Scalability What is Scalability? Scalability refers to a blockchain network’s ability to handle an increasing number of transactions efficiently — that is, processing more transactions per second (TPS) with low latency and reasonable costs as the user base grows. Why is Scalability Important? User adoption: More users and apps mean more transactions. Performance: Slow networks and high fees (like on Ethereum during congestion) hurt user experience. Mass adoption: For blockchains to compete with traditional systems (like Visa or Mastercard), they must scale to thousands or millions of TPS. Scalability Challenges in Blockchain Decentralization vs. Scalability vs. Security (The Blockchain Trilemma) Proposed by Vitalik Buterin, this states you can optimize for only two out of these three: Decentralization: Many nodes verifying transactions. Scalability: High throughput and fast processing. Security: Resistance to attacks and fraud. Improving s...