What is Scalability in blockchain ? with Example

 What is Scalability in blockchain ? with Example 

The most difficult characteristic to include in modern blockchain networks is scalability.

 Although numerous projects claim to have achieved this point, none can support a substantial user base. 

When a few hundred nodes confirm transactions for only 50,000 active users, a transaction throughput (TPS) of 6,000 may be sufficient, but what happens when the same network must accommodate millions of users at once?

It’s important to realize that scalability isn’t a metric that aims for an X TPS for a Y amount of users. 

We don’t know what kind of workload blockchains would have to handle at a worldwide adoption level.

 Thus there isn’t an ultimate goal. It would be more practical to think of it as a degree or level of effectiveness that should be present at all times.

Let’s just look at how many users blockchains like Bitcoin should support in this internet age! 

These numbers fluctuate, and the systems need to be robust for accepting the demand. According to sources, as of December 2020, the Bitcoin blockchain has 20 million monthly active users.

With transaction costs of $25, we believe that Bitcoin has reached its limit, especially with such a small user base compared to Facebook and Twitter. 

As a reminder, Bitcoin’s network congestion peaked in 2017 during the previous bull run, costing customers up to $60 per transaction.

As of Q4 2020, Statista estimates that Facebook has 2.8 billion monthly active users. According to figures from the first quarter of this year, Twitter has just 330 million active users. 

As a result, scalability is a pressing issue that must be addressed as soon as possible. 

If Bitcoin tries to achieve worldwide adoption goals as it did in 2017, it will face a hard rejection, leading many to question whether blockchain technology is the way of the future.

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