July 15, 2024

Darcy Hagey

Digital Breakthroughs Progress

Scalability In Blockchain, Revisited

5 min read
Scalability In Blockchain, Revisited
Scalability In Blockchain, Revisited


Blockchain, the technology behind cryptocurrencies such as Bitcoin and Ethereum, has gained a lot of traction. It is now being used to solve problems in various industries like healthcare, logistics, supply chain management and many more. But what exactly is scalability? And how can it be improved for blockchain-based applications? This post will explore that very question by giving an overview of how scalable solutions have been introduced into different blockchains over time.

What is scalability in blockchain?

You may have heard of blockchain scalability. It’s a hot topic in the industry, and it has been for some time. If you’re not familiar with it, here’s an overview:

Blockchain scalability is simply the ability of a blockchain to process more transactions per second than its current capacity allows. Blockchains can be made faster by increasing their TPS (transactions per second) or reducing block sizes; however, this comes at the cost of security and decentralization–two crucial aspects of any decentralized system like Bitcoin or Ethereum that make it so useful in the first place!

How does blockchain work?

Blockchain is a distributed ledger. If you’ve heard about blockchain, it’s likely because of Bitcoin or another cryptocurrency that uses the technology to verify transactions and generate new units of currency. But blockchain is much more than just a way to manage digital cash–it has applications across industries and sectors, from finance to healthcare and beyond.

Blockchain technology allows multiple users to share access to an immutable record of transactions without relying on any central authority or trusted third party (like a bank). This makes blockchains ideal for storing information about who owns what assets across large networks of people who don’t necessarily trust each other yet want their records kept safe from tampering by others with bad intentions–or even just bad luck!

What are scalability solutions in blockchain?

Sidechains are a way to allow multiple blockchains to be used in the same ecosystem without having to trust each other. They have been around for some time and have been considered by some as a solution for scalability issues in blockchain technology.

Child chains are another way of scaling up the number of transactions that can be processed at once on an existing blockchain network. There are two main types: master-sidechain (where you want all your data stored) or delegated-sidechain (where you want only certain parts of your data stored).

State channels allow users to transact with each other directly between themselves using smart contracts without going through third parties like exchanges or banks—so long as everyone involved has access to these technologies!

Scalability In Ethereum and Bitcoin.

In the last few years, Ethereum has seen a massive increase in its transaction volume. The network is currently processing about 1 million transactions per day and can handle up to 10 million transactions per day with minor improvements. However, if you want to scale it up further than that, you need serious upgrades such as sharding or Raiden Network which is being developed by Ethereum co-founder Vitalik Buterin himself.

The Bitcoin blockchain also has limitations on how many transactions it can process at once because each block size limits the number of transactions that can fit inside them (i.e., 1 MB). The Lightning Network was created by Joseph Poon and Tadge Dryja as an off-chain solution for scaling bitcoin’s capacity problems by opening payment channels between two users who want to transact without broadcasting every single transaction onto the main blockchain network

Sidechains, child chains and state channels.


A sidechain is a blockchain that’s separate from the main chain, but still maintains a link to it. It can be used for things like privacy features, or scaling solutions like child chains (more on those later). Sidechains are useful when you want to keep transactions off-chain and still have them validated by miners on the main chain. This allows you to do things like create new cryptocurrencies using Ethereum’s technology without having your own blockchain–you simply launch an ERC20 token on top of Ethereum using whatever parameters are most appropriate for your project.

With the introduction of sidechains, child chains and state channels, the world has seen an increase in scalability.

The world has seen an increase in scalability with the introduction of sidechains, child chains and state channels.

Sidechains are independent blockchains that are connected to the main blockchain through a two-way peg. This allows for assets to be moved between them at a predetermined rate, with each chain having its own consensus ruleset and maintaining its own native token. This makes it possible for one chain’s ecosystem (e.g., Bitcoin) to operate as if it were entirely separate from another’s (e.g., Ethereum).

Child chains are separate blockchains that exist within a hierarchical system that connects multiple tiers of smaller networks together into one large network (like an assembly line). Each tier would be responsible for some aspect of processing transactions or storing data; each tier could also host its own set of applications built on top of them–creating an ecosystem where users can choose which components they want based on what they need out of those components’ functionality


With the introduction of sidechains, child chains and state channels, the world has seen an increase in scalability. This technology can help organizations to scale their operations without compromising on security or trustworthiness of data stored on them. The only thing holding back from even greater adoption is that these solutions are not yet ready for prime time use by enterprises who want a solution today rather than tomorrow