What Is the Blockchain Scalability Problem and How Is It Solved?

What Is the Blockchain Scalability Problem and How Is It Solved?

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Did you know that El Salvador recently became the first country to declare bitcoin a legal tender?

Don’t worry, you do not have to run a country to incorporate cryptocurrency into your life. Interested in investing in crypto? Then you better understand blockchain technology beforehand.

Understanding the Scalability Issue of Blockchain | by Diana Chen | Unstoppable Domains | Medium

Read our article to learn all about blockchain scalability, its potential problems, and solutions!

Scaling the Blockchain Network

The blockchain network is not an ideal system to scale. If you are up for the task, however, creating scalable blockchain technology can be accomplished.

The scalability problem refers to current technology. It is currently unable to handle the blockchain network.

What will it take in order for blockchain tech to become scalable? Major corporations will need to integrate the blockchain into their processing systems.

Scaling the blockchain will need a strong network of supporters. IT experts and business professionals will be an asset as well.

How Distributed Ledger Technology Works

Distributed ledger technology is an aspect of blockchain technology. It makes it difficult to integrate into the status quo.

The blockchain network relies on a system of computers around the globe. These computers verify data transactions.

Nowadays, corporations usually outsource their IT services to a cloud network. A scalable blockchain network requires organizations. The network shares its data on a public ledger.

This level of transparency is one of the reasons that prevent the blockchain network from becoming scalable.

Possible Cryptocurrency Market Solutions

Investing in the crypto market now is one solution to potential scalability problems. Being aware of crypto market trends can help you know when to invest!

Checking the prices of crypto regularly is a wise decision. For example, the Solana price regularly fluctuates.

Cryptocurrencies like Bitcoin and Ethereum are great entry-level coins. They are predicted to be one of the first coins to become scalable in the American economy.

Bitcoin Satoshi’s Vision (BSV) is another potential solution to the blockchain scalability problem. It was created in 2018 after a hard fork from the Bitcoin Cash blockchain. The Bitcoin Association, which is a nonprofit organization that supports Bitcoin SV, describes it as the “original Bitcoin.” BSV was created to restore the original Satoshi protocol and make it more scalable so that it can support a larger number of transactions. Although BSV is not as well-known as some other cryptocurrencies, it has a devoted following among those who believe that it is the true Bitcoin.

Choosing the Best Crypto Exchange

Choosing the best crypto exchange can help you avoid scalability problems in the future. Having access to your digital assets is also an important factor to keep in mind.

Be sure to research the best cryptocurrency wallets so that you have access to your digital currency anywhere you are.

Once you are able to digitally carry cryptocurrency, begin to choose what exchange you would like to purchase crypto through.

In fact, a scalability solution is being integrated right now in the United States.  Bitcoin ATMs are a possible solution to help everyday people become invested in digital currencies.

Ready to Tackle Blockchain Scalability?

Now you know all about scalability problems with cryptocurrencies and potential solutions to the problem.

Do you think you are ready to tackle the blockchain scalability problem for yourself? Remember, you will need to be equipped with plenty of fiats, crypto wallets, and price charts!

If you are still in need of inspiration, consider reading our other blog posts where we share the latest lifestyle trends and tips!

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Written by

Alexander Sterling

Alexander Sterling

Alexander Sterling is a renowned financial writer with over 10 years in the finance sector. With a strong economics background, he simplifies complex financial topics for a wide audience. Alexander contributes to top financial platforms and is working on his first book to promote financial independence.

Reviewed By

Judith

Judith

Judith Harvey is a seasoned finance editor with over two decades of experience in the financial journalism industry. Her analytical skills and keen insight into market trends quickly made her a sought-after expert in financial reporting.