Blockchain Scalability: Current Challenges and Potential Solutions

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Blockchains and the related field of decentralized technologies represent a massive opportunity for humanity — not to mention the fact they appeared with almost perfect timing.

Fortunately, blockchain technology, cryptography and other distributed systems act as a counterbalance to this extreme consolidation of power.
Challenges of blockchain scalability

Fundamentally, a blockchain is a time-linked distributed ledger. Each computer, or node, in the network retains a copy of the ledger, which reduces the risk of corruption by any individual person or group inside the network.

One trade-off with distributed networks is that, since each computer must retain a copy of the ledger, this puts a huge constraint on the throughput of the system.

In 2017, due to the increasing popularity of Bitcoin (BTC), the network approached its current limitation in transaction throughput. In other words, there were more people trying to use the network than it could handle.

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