Problems and Blockchain Scalability Solutions

Problems and Blockchain Scalability Solutions

written by John Murphy | April 18, 2023

Do you know about Blockchain scalability? The transaction speed of Blockchain is known as scalability. When a Blockchain handles a high volume of transactions in just a short time, this is Blockchain scalability. In the crypto industry, Blockchain scalability is considered a big challenge.

Currently, traditional payment methods are still faster than crypto transactions. However, various techniques and ideas are explored to improve this transaction method.

In the field of Blockchain, scalability has a different conception. Understanding the latest Blockchain scalability solutions is very necessary. Because it will affect the growth and advancement of the cryptocurrency industry and community, we will discuss scalability in Blockchain challenges and solutions in this article.

Key Takeaways:

  • Blockchain scalability can be improved through second-layer solutions such as off-chain, sidechain, and payment channel techniques.
  • Off-chain solutions involve building a layer 2 Blockchain on top of the main Blockchain to improve throughput and reduce network congestion.
  • Sidechains communicate with the main Blockchain but operate as an individual network, allowing for offloading transactions from the main chain.
  • Payment channels enable rapid, cheap transactions between parties through off-chain smart contracts, without requiring global consensus.
  • Scalability is critical for the future growth of Blockchain, as it refers to the network’s ability to support higher transaction throughput, but it must not come at the cost of decentralization and reduced security.

What Is The Solution To Blockchain Scalability?

Second-layer scalability solutions are added to enable quicker transactions in the primary Blockchain network as a second layer. The connection of the leading Blockchain with the smaller Blockchain is called a sidechain.

Blockchain Scalability Solutions
Source: akeo

You can assist and trade the main chain and sidechain at a fixed price using a two-way peg. Sidechain can also be used to unload off the main chain by relocating some programs in the sidechain.

A payment channel also creates a communication path between two parties involved in a transaction. This leads to rapid transactions with cheap fees with the help of smart contracts.

Blockchain Scalability Solutions:

Blockchain is one of the rigorous programs; it means you can’t alter a single thing. Changing even one thing can affect the entire system. That is why sharding and forks are essential to take action anywhere else. Hence a new chain is built specially to develop a connection with the main Blockchain.

You can call this method an off-chain or layer two solutions.

Off-Chain Solutions:

Off-Chain Solutions
Source: steemit

To handle most transactions, layer 2 is built as a solution on top of the main Blockchain. The main reason for making this layer 2 Blockchain is to improve the throughput rate and decrease network congestion.


Sidechain directly communicates with the main Blockchain, but it still works as an individual network. You can easily precede different tasks and carry offload transactions from the main chain.

Multiple side chains are connected with the main chain, and all of these side chains have different architectures. Consider Ethereum’s plasma as a scaling solution using this type of solution for scalability.

Payment Channels:

You can allow peer-to-peer transactions through a smart contract known as payment channels which are off-chain networks. It only requires a small amount as a fee, and later you can create a channel for the transaction.

Here you can proceed with the transaction and make private payments. Smart contracts operate the activities done in payment channels. And you don’t need global consensus here.

You can also close the payment channel but always remember to report the main Blockchain having the final state for the transaction done by you. You can consider Ethereum’s Raiden and Bitcoin lightning network in between the most popular payment channels.

What Is The Blockchain Scalability Problem?

When you have finally understood the solution, have you ever wondered about scalability issues in Blockchain? Generally, Bitcoin could be more scalable, so it mainly focused on throughput. You can also have to remember the fact that you can only process a few transactions per second.

For the real-world application, it is insufficient when comparing it with VISA. Through VISA you can do 24, 000 tps. Another problem of Blockchain scalability is that a trader or investor doesn’t wait hours to purchase.

Why Is Scalability Important For Blockchain?

Scalability is essential for Blockchain because it refers to support towards higher transaction throughput for the network’s ability. For the future growth of Blockchain, scalability is critical.

With the adoption of Blockchain technology, the use cases are increasing, but the performance of perfectly scalable Blockchain is not affected. Blockchain lacking performance due to growing adoption is the best way of expressing a lack of scalability.

Moreover, you will also get decentralization and reduced security when you achieve improved scalability. Furthermore, it would help if you also kept in mind that with conventional centralized performance, only Blockchain networks can compete effectively with the help of scalability.

What Are Layer 2 Scaling Solutions For Blockchain?

Layer 2 Scaling Solutions For Blockchain
Source: maddevs

Changes in the primary Blockchain network also considerably impact first-layer viability. Or you can also consider chain scaling techniques. A study about how to handle a scalability difficulty in a Blockchain network, the result shows off-chain scaling methods.

The second layer or layer 2 scalability provides this off-chain scaling method. At the top of the leading Blockchain layer 2, scaling solutions for Blockchain are discussed. And to offload the transaction from the main Blockchain, secondary protocols are followed.

However, to address the network congestion issues and storage problems, layer 2 solutions are considered essential. You can include both off-side chain and state channels in the second-layer options.


1. How does Blockchain scale?

To increase the number of transactions per second, the Blockchain scale is considered as significant. Either an increase in block size or a decrease in block time is the only solution.

2. How do you increase scalability in Blockchain?

You can increase the scalability in Blockchain through an on-chain scaling solution. These on-chain scaling solutions include sharding and segwit. The division of Blockchain into various smaller sub-networks, which increases the Blockchain scalability, is known as sharding. Apart from that, changing the codebase of Blockchain, which improves the capacity and efficiency of the transactions, is segwit.

3. How to measure Blockchain scalability?

The number of transactions done in a second is the only way to measure Blockchain scalability. This method of measurement is called throughput. The other metrics that can be measured include block interval, block size, and the number of boxes on the network. Although a few factors like speed and cost of the transaction, overall user experience, is also included as necessary while evaluating Blockchain scalability


There is a permanent increase in Blockchain scalability issues due to the growing demand for Blockchain applications. Many transactions at a time block the Blockchain network and restrict the network from further transactions.

To continue the trade, you should know Blockchain scalability solutions and why it is essential. You can find the answer in the development stage for most scalability issues.