In this bear market, blockchains behind its currencies try to solve one of the major problems: Scaling. If I send you cryptocurrency to you, how long does it take its blockchain to process that order? It should be fast. But they are not in general. If millions of people try to do that, how much time does it take for this blockchain to send the money? That's the scalability problem.
When it comes to mass adoption of blockchain technology, we have a major problem: scalability. Without scalability, blockchain cannot keep up with inreasing demand. So, nowadays, almost every project works hard on scalability solutions. Without scalability, it is inevitable to have delays.
It is customary to compare a project with PayPal and Visa. PayPal processes 200 transactions per second (tps) while Visa can process 2500 tps. Bitcoin and Ethereum have been facing serious scalability problems so far. Since other blockchain projects haven’t actually been tested for this yet, their blockchains haven’t been subjected to serious transaction volumes.
So why do we have scalability problem:it come from the trilemma problem
Source: freestartupkits.com
So what determines scalability (eg. blockchain speeds ): method of consensus, block size and underlying technologies being used.
Solutions
Blockchain projects try to overcome scalability issues with different techniques. Here is a shortlist.
Lightning networks (Bitcoin, Stellar and Ethereum)
Tangle (IOTA)
Sharding (Zilliqa)
Plasma (Ethereum)
Increase the block size (Bitcon Cash)
The blockchain projects which solve this problem without harming the main benefits of crypto will succeed in this bear market and go mainstrem. Only time will tell of course.
So what's your opinion. which projects will succeed?
Please share.
Sources:
https://cointelegraph.com/explained/blockchains-scaling-problem-explained
https://medium.com/coinmonks/a-comparison-of-blockchain-platforms-part-1-competitors-381f9434cf96
Thanks for reading. I hope you’ve found it helpful.
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