How to Improve performance and scalability of blockchain

Blockchain scalability

What is blockchain scalability ?

Scalability of blockchain networks is the ability of that platform to support increasing load of transactions, as well as increasing the number of nodes in the network. Scalability determines the network’s capacity, including the number of nodes in the network, the number of transactions that the network can process, how fast the network can process and so on. The term scalability is sometimes confusing because blockchain is scalable upon new participants joining the network. The PoW system will automatically adjust the difficulty, and the network can tolerate any number of nodes that exist in the network.

Blockchain scalability problem ?

The inability to measure community blockchains hinders the provision of appropriate solutions for businesses and industries. The centralized system supports many online activities between individuals or companies (or controlled by a third-party organization). A bank or credit card provider, for example, may act as a third party in making a digital payment or transfer service between two organizations (or individuals). The third-party seller charges for all successful transactions.

An external company manages and manages almost all of the information of participating participants in online trading in an integrated manner. This approach requires the involvement of a third party to ensure the safety of the transaction. On the other hand, Blockchain is a widely distributed cryptographically signed transaction stored on a peer-to-peer network, where no third party is required to manage information and trust between network users is no longer a problem.

Scalability is now identified as a significant barrier to the development of social blockchains in many real-world commercial real estates. The issue of Blockchain growth is most acute as the number of nodes and transactions increases. This problem exists in large public blockchain systems since each node must maintain and perform a calculator function to ensure each transaction.

Various blockchain scalability solutions ?

Considering resilience as the most important barrier to the acquisition of a common blockchain, effective Blockchain scalability solutions are required. Currently, many types of solutions are now developed to solve the problem of blockchain scalability. Surprisingly, responses to blockchain scalability problems can now be categorized in four different ways. Each phase of the solution provides different strategies for dealing with Blockchain scalability issues.

Scalability solutions for the first layer

The most common answer to the question “how do you fix the scalability problem in the blockchain?” can lead you to layer-1 solutions. The first layer, or solution 1 layer, creates a need for changes in the main blockchain network software. As a result, layer 1 solutions are often referred to as on-chain scalability solutions.


Sharding is a well-known form of on-chain scalability. It focuses on splitting the blockchain network into smaller, manageable segments known as shards. The network will then issue shards in conjunction with each other. The output of network processing will increase as each shard handles part of the processing of group work. By splitting the network into smaller bits, it can serve as a component of its components. Shading effectively eliminates the need to rely on the performance of individual nodes in order to achieve faster and more efficient operations.

Separated Witness

Separate Witness, or SEGWIT, is another important contribution among the first blockchain scalability options. SEGWIT is a regulation developer on the blockchain network. It focuses on changing the way and structure of data storage. Helps to clear signature data linked to each transaction, resulting in an increase in volume and storage space. It is important to note that the digital signature to verify the identity of the sender and the receipt of funds constitutes approximately 70% of the total workspace. The removal of the digital signature may free up additional space for the addition of new functions.

Strong forks

A fork is a process that focuses on making structural or basic changes to blockchain network assets. Making a solid fork, for example, may mean increasing the size of the block or reducing the time required to create a block. While hard forking is a requirement for scalability 1-layer blockchain solutions, a strong opposing fork is the most productive method. A strong problem fork actually raises divisions in a large blockchain network. This occur with a certain segment of the community competing with the main community for certain topics. In such cases, the sub-set of the blockchain community may choose to make fundamental changes to the primary source.

Second layer scalability solutions

The effectiveness of first-line or on-chain scalability methods depends largely on changes in a large blockchain network. However, research on how to solve the scalability challenge on a blockchain network has led to the emergence of measuring methods outside the chain.

Second layer or 2nd layer scalability solutions are off-chain scalability options. Layer 2 solutions are additional protocols built over the main Blockchain. The second protocols will use for the ‘uninstallation’ that takes place in the main Blockchain.

Country channels

State channels are a common inclusion among 2nd layer blockchain scalability solutions. State channels enable dual communication between offline channels and blockchain networks through a variety of channels. As a result, it has the potential to significantly increase the speed of production and energy. It is important to note that state channels do not require the immediate participation of miners to ensure transactions. On the other hand, country channels serve as network-enabled services connected with the help of a smart contract or multi-sign method. Once a task or series of tasks in a state channel has completed, the appropriate Blockchain records the final ‘status’ of the ‘channel’ and any related transactions.

Side chains

Sidechains are also a popular choice among 2nd floor solutions for deciding how to solve a blockchain problem in your blockchain. Sidechain acts as a commercial chain near Blockchain for large batch transactions. Compared to the main chain, sidechains use different harmonious techniques.


In place of layer 2 scalability solutions, Plasma is also an outstanding blockchain scalability solution. Focusing heavily on the use of child chains starting with the parental blockchain. Each child chain acts as a separate blockchain. As a result, Plasma can be design for use in situations that involve processing a particular type of work while ensuring performance in the same environment with improved safety.

Significance of the Scalability

blockchain scalability

Scalability refers to the network capacity of large-scale operational support and is an important factor in blockchain networks. As a result, resilience is essential for future Blockchain growth. The growing number of cases of use and adoption of blockchain technology cannot completely undermine the functionality of a dangerous blockchain. Blockchains with declining performance due to increased usage may indicate a lack of balance.


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