Solving Blockchain’s Biggest Problem: 5 Projects Working On Scalability

When talking about the future of blockchain technology, the tech’s scalability issues need to be addressed. Not because it’s anywhere near the most interesting aspect of it, but because it’s the biggest challenge the industry faces today.

Mass adoption won’t happen if blockchains can’t scale, simply because most people will not accept slower applications than they’re used to just for the sake of decentralization.

Since the decentralized ledger that forms the foundation of a blockchain keeps getting bigger with every block added to the chain, scalability is an inherent problem of blockchain technology. Moreover, decentralized networks severely increase the cost of maintenance and transactions, because the nodes need to be incentivized to validate the network.

Then there is the problem that with an increase in the number of nodes in a network, the harder it becomes to reach consensus among these nodes — but less nodes means less decentralization.

These problems inherent to blockchain technology, and decentralized ledger technology in general, have come to light over the past year as cryptocurrencies became more popular. Bitcoin and Ethereum display serious scalability issues, and most other blockchain projects haven’t actually been tested for this yet, as their blockchains haven’t been subjected to serious transaction volumes.

Bitcoin, Ethereum, and close to all other blockchain projects have been working on solving the scalability issues, mostly through off-chain or second-layer solutions. However, several projects have designed their decentralized protocols from the ground up to be able to scale effectively.

From. https://www.investinblockchain.com/solving-blockchain-scalability-problem/

By.By Jorn van Zwanenburg