Here if we talk about the scalability of bitcoin, it is an issue that has been building within its community since its inception of bitcoin. The problem came to the fore in 2017 with bitcoin’s inability to efficiently handle increasingly large volume transactions when bitcoin cash was decoupled from bitcoin. Click on image below to register and to start bitcoin trading.
However, this was when BCH entered the world of crypto. But today we will know the distinction between bitcoin cash and bitcoin. And what approach do these cryptocurrencies adopt to deal with the problem of scalability?
What Is Bitcoin’s Scalability Problem?
Most of the blockchain technology around the world also has the problem that it is very slow. However, this comes to light only when it is known the time taken by the bank to process debit and credit card transactions. On the other hand, when it comes to bitcoin, only six transactions per second are verified by it. This, coupled with the fact that the network is able to cap the number of transactions that can be processed, block-size limits with a new block added to the chain at an average interval of every ten minutes.
The number of users of the bitcoin network and issuing transactions continues to grow which becomes a major problem. Because more and more transactions are issued each day, bitcoin’s limit to the number of transactions that can be verified per second means that transactions can take longer to process.
Implemented and proposed solutions to the scalability difficulty
If there are scalability problems in cryptocurrency technology, then its development becomes very slow. For example, it is considered unprofitable for stores and restaurants to accept payment in tokens because of potential scalability and other delay-related problems. And when such a situation arises all cryptocurrency developers aim to solve the problem of scalability completely. To solve it here we have discussed some things that can help in the solution.
Magnify the block size to eight megabytes
This proposal was put forward in the year 2015 after discussions with a large number of experts and companies. In general, there was a big story attached to this solution at the time. In which a gathering of developers chose to make another digital money in view of the bitcoin convention, by making blocks as extensive as eight megabytes.
Moreover, one more gathering considered making another currency with its own convention without extending the block. But if seen, there was disagreement between the developers on this agreement and the companies. On the other hand, the first group of developers included the people who later created Bitcoin Cash, and the second group included the company Blockstream which had SegWit as the protocol, and whose goal was the settlement.
Here if we talk about the Lightning Network, the protocol by which nodes and channels are used in the cryptocurrency network. Aside from this, its primary benefit lies in the way that it is equipped for working progressively mode.
The reality is here you might require two nodes and a channel between them to do transactions. Both those nodes then set a certain amount of money to maintain the channel, which is made up of the amount deposited carrying capacity. Although the Lightning Network is in the alpha-version stage, it is already regarded as the best scalability conciliation to the problem.
Scalability has emerged as a major problem for all cryptocurrencies. In today’s time, most of investors are searching for many ways to overcome this shortcoming. Therefore, in this article, the reviews of the most talented and most known are discussed. In general, the problem of scalability occurring in cryptocurrencies will be solved gradually.