Understanding Blockchain Scalability? How To Calculate It! And Which Blockchain is Most Scalable?

12 min readOct 16, 2022


Blockchain scalability is the ability of a blockchain network to process and verify transactions at high volume and speed. A scalable blockchain platform can handle a large number of transactions without compromising security or performance. Currently, understanding blockchain scalability is a significant pain point for many networks.

understanding blockchain scalability

The Bitcoin network, for example, can only process seven transactions per second (TPS). Ethereum processes 15 TPS. In comparison, Visa handles 24,000 TPS on average and can handle 56,000 TPS under peak load conditions.

Blockchain networks have some catching up to do if they want to be used for large-scale applications such as payments or global trade. There are two main approaches to scaling blockchains: off-chain and on-chain solutions. Off-chain solutions involve keeping most of the data and processing outside the blockchain network.

On-chain solutions scale by increasing the capacity of the blockchain itself.

What is Blockchain Scalability?

Understanding Blockchain Scalability is one of the essential issues facing blockchain technology today. The ability to scale a blockchain network to handle increasing transaction volumes is critical to its success in the long term. Several approaches are being explored to address the scalability issue, and it remains an active area of research and development.

One approach that has been proposed is known as sharding. This involves dividing the blockchain into multiple shards, each of which can process transactions in parallel. This would allow the overall network to scale more effectively as transaction volumes increase.

Another promising approach is known as Lightning Network. This is a second-layer solution that uses off-chain payment channels to improve scalability. The Lightning Network has already been successfully deployed on top of the Bitcoin network and shows great promise.

Scalability is a crucial issue for blockchain technology moving forward. With new solutions being developed and implemented, it is hoped that this critical problem can be overcome and that blockchain can reach its full potential.

Understanding Blockchain Scalability?

Blockchain is a distributed database that allows for secure, transparent, and tamper-proof record keeping. However, one of the challenges facing blockchain technology is scalability. Blockchain can only handle a limited number of transactions per second, limiting its potential use cases.

For example, Visa can process around 24,000 transactions per second, while Ethereum’s network can only handle around 15 transactions per second. This scalability issue must be addressed for blockchain to be adopted on a broader scale. One proposed solution is to increase the block size limit so that more transactions can fit into each block.

However, this would lead to centralization as only those with powerful computers would be able to validate blocks. Another solution is to create side chains that allow for parallel transaction processing. This would also lead to centralization as those who control the side chain could censor certain types of transactions. There is no easy solution to the scalability problem facing blockchain. Still, it needs to be addressed if the technology is widely adopted.

Why is Blockchain Low Scalability?

The scalability of blockchain technology is a significant concern for many businesses and organizations considering its adoption. The main reason is that the current generation of blockchain platforms cannot support large-scale applications due to their limited throughput and high latency. This has led to several projects working on scalability solutions for blockchains, such as the Lightning Network, Plasma, and Sharding.

While these solutions show promise, they are still in their early stages and have yet to be proven at scale. In the meantime, businesses and organizations must carefully consider whether or not the benefits of blockchain technology outweigh its current limitations.

Which Blockchain is Most Scalable?

There is no definitive answer when it comes to the most scalable blockchain. However, a few contenders are often cited as being the most scalable. These include EOS, TRON, and Cardano.

All three blockchains have been designed with scalability and implemented various features and protocols to address the issue. EOS is often touted as the most scalable blockchain due to its unique architecture. It uses a delegated proof-of-stake consensus mechanism, allowing it to process thousands of transactions per second.

TRON also has high transaction throughput thanks to its similar delegated proof-of-stake consensus model. Cardano is another promising contender regarding scalability; its developers have put a lot of effort into ensuring that the blockchain can handle large amounts of traffic without any issues. Ultimately, it is hard to say which blockchain is the most scalable.

It will likely come down to how well each one performs in real-world conditions once they start seeing widespread adoption.

How Do You Calculate Blockchain Scalability?

When blockchain technology emerged, it was heralded as a breakthrough to revolutionize businesses’ operations. One of the key features that make blockchain so appealing is its scalability. But what does that term mean in this context?

And how do you calculate scalability in blockchain? In general terms, scalability refers to a system’s ability to handle increasing levels of load or demand. When applied to the blockchain, it refers to the ability of the network to cope with increasing numbers of transactions without compromising on security or performance.

Several factors need to be considered when calculating scalability in the blockchain. These include: — The size of the network: As more nodes are added to a network, it becomes more centralized and less secure.

Proof-of-Work (PoW) Vs. Proof-of-Stake (PoS)

Therefore, it’s essential to balance maintaining decentralized properties and ensuring that the network can support the increasing number of users. — The type of consensus algorithm: Different consensus algorithms have different impacts on scalability. For example, Proof-of-Work (PoW) is widely used but can be pretty slow and energy intensive.

Alternatively, Proof-of-Stake (PoS) is much faster, but it isn’t as secure as PoW. — The block size refers to the maximum amount of data stored in a single block on the chain. If the block size is too small, there will be frequent forks in the chain as different miners attempt to add blocks containing different data sets.

If the block size is too large, it will take longer for new blocks to propagate through the network, which could impact performance. Ultimately, there is no perfect solution for scaling blockchain networks, and each project needs to consider these various factors carefully before deciding on a course of action. However, with careful planning and execution, it is possible to create scalable systems that can offer all the benefits of blockchain technology without any significant problems.

Understanding Blockchain Scalability Problems

Understanding Blockchain scalability problem is a big deal because it’s the number one thing holding back blockchain technology from being adopted on a mass scale. Right now, the most popular blockchain, Bitcoin, can only handle around seven transactions per second. That might sound like a lot, but when you compare it to Visa, which can handle around 24,000 transactions per second, it’s clear that there’s a big difference.

There are a few proposed solutions to the blockchain scalability problem, but none have yet been implemented on a large scale. The most promising solution is sharding, which essentially involves dividing the blockchain into smaller pieces so that each piece can be processed more quickly. However, sharding is still in the early stages of development, and it’s unclear if it will ultimately succeed.

In the meantime, businesses and individuals interested in using blockchain technology are faced with a tough decision: do they wait for a solution to the scalability problem to be developed, or do they go ahead and use existing blockchain platforms even though they’re limited in terms of transaction speed? It’s a difficult decision, but it ultimately depends on how important speed is for the particular application you’re looking to use blockchain for.

Understanding Blockchain Scalability Trilemma

Decentralized systems have three core properties: security, scalability, and decentralization. Of these three, however, only two can be achieved at any time. This is known as the blockchain scalability trilemma.

There are a few different ways to measure decentralization, but we’ll use the “percentage of hash power controlled by the top 10 miners” metric for our purposes. A system is considered decentralized if no single entity controls more than 50% of the hash power. Scalability is measured in terms of transactions per second (TPS).

A system is considered scalable if it can handle more than 10 TPS. Security is measured in terms of 51% of attacks.

Blockchain Scalability Research Paper

The blockchain is a distributed database that allows for secure, transparent, and tamper-proof data management. The scalability of blockchain technology has been a significant concern since its inception, as the underlying structure of the blockchain — a chain of blocks — can only support a limited number of transactions per second. To address this issue, various research papers have proposed different solutions that aim to improve the scalability of blockchain technology without compromising its security or decentralization.

One such solution is the Lightning Network, which operates on the existing Bitcoin network and uses smart contracts to enable near-instantaneous payments with low fees. Another proposal, known as sharding, would divide the blockchain into multiple shards that could process transactions in parallel. Several off-chain solutions, such as sidechains and state channels, allow for scaling without sacrificing decentralization.

Whichever solution is eventually adopted, it is clear that scalability must be addressed for blockchain technology to reach its full potential. With continued research and development, scalable solutions will likely be found that will allow the blockchain to fulfill its promise as a game-changing technological innovation.

Blockchain Trilemma

The blockchain trilemma is a term used to describe the three key features necessary for a blockchain platform to succeed. These features are security, scalability, and decentralization. While having two of these three features is possible, it is challenging to have all three.

This is because each feature tends to conflict with one another. For example, increasing security often decreases scalability and vice versa. The blockchain trilemma was first proposed by Vitalik Buterin, the co-founder of Ethereum.

He argued that a blockchain platform must choose two out of three features to succeed. However, he also recognized that some platforms might eventually find a way to overcome this challenge and offer all three features simultaneously. So far, no blockchain platform has been able to offer all three features simultaneously.

However, some platforms have come close. For example, Ethereum has good security and decent decentralization but poor scalability due to its proof-of-work (PoW) consensus algorithm. EOS has good security and scalability but poor decentralization due to its delegated proof-of-stake (DPoS) consensus algorithm, which gives certain users more power than others.

Ultimately, the decision of which two out of three features a blockchain platform should focus on depends on its specific goals and use cases. There is no one-size-fits-all solution for every situation.

Scalability in Blockchain Challenges And Solutions

Scalability is one of the key challenges facing blockchain technology. The problem with understanding blockchain scalability is that as the network grows, so does the number of transactions that need to be processed and stored. This can quickly lead to congestion and slow down the network.

There are a few proposed solutions to this problem. One is to increase the block size, allowing more transactions to be processed per block. Another solution is sharding, which splits up the transaction data so that it can be processed in parallel by different nodes on the network.

Finally, off-chain scaling moves some processing and storage outside the blockchain itself. Which solution is best will likely depend on the specific needs of each blockchain application. But regardless of which solution is used, scalability must be addressed if blockchain technology will reach its full potential.

Systematic Literature Review of Challenges in Blockchain Scalability

Systematic literature reviews are essential for synthesizing the current state of knowledge on a topic. In this review, we aim to identify and characterize the challenges to understanding blockchain scalability through a systematic literature review of existing research. We provide insights into possible solutions to these challenges based on our findings.

The first challenge we identified is the limited throughput of current blockchain systems. This is because each node in the network must process every transaction, leading to bottlenecking and slowing down the system. One proposed solution to this problem is to increase the block size, allowing more transactions to be processed per block.

However, this would also lead to increased storage requirements for nodes, which may not be feasible for all nodes in the network. Another solution is sharding, where transactions are divided into shards that can be processed in parallel by different nodes. This would significantly increase throughput but comes with challenges, such as keeping track of all the shards and ensuring they remain synchronized.

The second challenge relates to energy consumption — currently, most blockchain systems are very energy intensive due to all the computational work required to maintain consensus across all nodes in the network. This has led some researchers to propose alternative consensus mechanisms that are less energy-intensive (e.g., Proof-of-Stake). However, these mechanisms come with their trade-offs and challenges that need to be addressed before they can be implemented on a large scale.

Privacy and Security In The Blockchain

Finally, we identified privacy and security concerns as significant challenges facing today’s blockchain technology. These concerns have been raised mainly due to the public nature of most blockchain networks — since all transactions are visible to everyone on the network, there is a risk that sensitive data could be leaked if proper precautions are not taken. Additionally, many current implementations of smart contracts are vulnerable to attack due to flaws in their design or implementation; this could lead to severe consequences if not appropriately addressed (e.g., financial losses).

Blockchain Throughput

It’s no secret that blockchain technology has the potential to revolutionize the way we do business. But one of the challenges facing the adoption of this promising new technology is its limited throughput. Blockchain throughput is the number of transactions processed per second by a given system.

And compared to established payment systems like Visa, which can handle up to 56,000 transactions per second, current blockchain solutions are severely lacking. This limitation has been a significant hindrance to the broader adoption of blockchain technology, as businesses are hesitant to invest in something that may not be able to keep up with their transaction volume. Fortunately, several initiatives are underway to address this problem and improve blockchain throughput.

One such solution is called Plasma, which is being developed by the team behind Ethereum. Plasma is a framework for creating “child chains” from an existing blockchain that can process transactions much faster than the parent chain. Other solutions include sharding (which breaks up the data on a blockchain into smaller pieces so it can be processed more quickly) and off-chain scaling solutions like Lightning Network (which allows for near-instantaneous payments without having to wait for block confirmation).

With these and other solutions in development, it’s only a matter of time before blockchain technology achieves the scalability it needs to reach its full potential.

Is Blockchain Faster

Blockchain is a distributed database that allows for secure, transparent, and tamper-proof transactions. The benefits of using blockchain technology are well-documented, but one area often overlooked is the speed at which blockchain can process transactions. While traditional databases can take days or weeks to process transactions, blockchain can do it in minutes or seconds.

This is because each block in the chain contains a record of all the previous transactions, so there is no need to go back and forth between different parties to verify the accuracy of the data. This makes blockchain ideal for applications where speed is essential, such as payments or trading platforms. It also has the potential to revolutionize other industries, such as supply chain management and healthcare, where transparency and security are paramount concerns.

Final Thoughs

In the past year, blockchain technology has made significant advancements in terms of scalability. In this blog post, we look at some of the most notable achievements in understanding blockchain scalability and discuss what they mean for the future of the technology. One of the biggest challenges facing blockchain technology is scalability.

The Bitcoin network, for example, can only process a maximum of seven transactions per second (TPS). Compare that to Visa, which can handle 24,000 TPS, and it’s easy to see why there are concerns about blockchain’s ability to scale. However, there have been some recent breakthroughs that suggest blockchain scalability is improving.

For example, the Lightning Network is a “second-layer” solution that allows for nearly instantaneous Bitcoin transactions with low fees. The Raiden Network is similar to Lightning but works with Ethereum instead of Bitcoin. Other solutions include sharding (which breaks up data into smaller pieces so it can be processed more quickly) and off-chain solutions like sidechains (which allow certain transactions to be processed outside the main blockchain).

These advancements are promising and suggest that blockchain scalability is improving. However, much work must be done before the technology can reach its full potential.

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