In the last few years, the blockchain ecosystem has evolved where the scalability of public blockchains is the next challenge. Here, it is essential to discuss the need for blockchain scalability and challenges in scaling up blockchain solutions.
Need to Scale Up Blockchain Scalability
Cryptocurrencies especially, Bitcoin and Ethereum have become a major interest of people in the last few years. The transaction of Ethereum increased up to one million from 3000 backed in 2015. You can visualize the dramatic growth in transactions, and it has not stopped yet as EOS is gaining more popularity. These trends showcase an increase in the adaptation of blockchain technology, but few issues are still present.
Consequences Increase in Transactions
Due to the increase in the number of transactions, the following problems have occurred:
- The transaction time has increased up to a day as more unconfirmed transactions increasing regularly.
- Rapid increment in transaction fee due to increase in crypto adaptation.
- Due to enhanced block difficulty, the average power consumption for mining a block has increased.
- The increase in block size has made it difficult to add new nodes that make it difficult to maintain and complete blockchain.
With the increase in the number of transactions, the system has become slower, unsustainable, and expensive for multiple use cases like payment. Therefore, scaling has become a major problem because of blockchain's wider acceptance. Scaling up the system is not straightforward as deployment as there is additional time required to have required transactional data.
Solutions for Blockchain Scalability
Remembering blockchain architecture, let's look at the different areas where changes can result to scale the system up.
Number of Transactions in a Block
The best idea to scale up the blockchain is to add more transactions in a specific block. It can be done in two different ways; increasing blockchain and utilizing fewer bytes to represent information. In the blockchain, restriction of block size is to prevent clogging and spamming by malicious parties. While information related to the transaction is maintained in a block the increase security and accountability. If we can reduce the amount of data against each transaction, then we can achieve the required scalability.
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Block Addition Frequency
The addition of a new block affects the transaction rate, and it directly depends upon the block difficulty especially in PoW. Bitcoin’s average time for block creation is 10 minutes, while Ethereum's is 7. Reducing time means more transactions at a faster rate.
The number of transactions with a block multiple by frequency determines the transaction rate upper limit.
Communication Between Nodes
Exchange and distribution of data between different nodes are necessary for confirming the transaction. In the case of bitcoin, transactions get propagated twice, first in the broadcasting phase and then in mining. As sharing over the network demands some time, we can utilize network frequency to scale up a blockchain. The increment in connectivity downsizes propagation to some extent.
Final Word
The increase in the adoption of blockchain technologies has become a major challenge for blockchain development companies. The addition of new blocks, reducing data size, block creation frequency, and connectivity between nodes are the best solutions to scale up the blockchain. If you're struggling to achieve your results through blockchain solutions or looking to implement blockchain technologies, OptimusFox, the leading blockchain company is the best option for you.
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