Importance of Scalability In Blockchain Development Services
What is "Scalability" in Blockchain?
Scalability in the context of blockchain refers to transaction speed. This defines the ability of blockchain technology to handle large volumes of transactions in a short period. Generally, blockchain technology can be understood by focusing on three key aspects – Decentralization, Security, and Scalability. The third aspect Scalability affects the number of network nodes, transaction speed, and amount of transactions. . To enable quicker transactions, the second-layer scalability works best. Here the main blockchain is connected to a smaller blockchain which is known as a sidechain. Alongside, the off-chain network in addition to the main blockchain is called the payment channel. The objective of second–layer scalability is to develop a communication pathway to facilitate transactions between the parties.
Types of Scalable Blockchains
Various concepts add more value to the scalable blockchain network. Some of which are as follows –
This complex process requires all nodes to run POW and synchronize new blocks to the entire network. The synchronization process requires significant time while the block size and block interval varies. This process is largely dependent on the design of the consensus algorithm and is defined by the characteristics of the underlying network.
To address the scalability issues in the PoW system, new PoW schemes have been proposed. The new scheme focuses on allowing the consensus period to be similar to synchronization time rather than longer.
Scaling BFT Algorithms
It stands for Byzantine Fault Tolerance (BFT) algorithms are the family of consensus algorithms aimed at tolerating faulty nodes and allowing honest nodes to reach consensus even in untrusted networks. An approach like speculative BFT, PBFT, etc helps scale BFT algorithms.
Scaling Out Blockchains
Scale–out blockchains are the suitable solution to address the blockchain scalability problem as it improves the throughput of a blockchain network while dividing the network into "shards". However, the key challenge is to design and implement the solution in a way that balances blockchain scalability with decentralization and security.
Approaches To Blockchain Scalability
The scalability of blockchain technology can be improved and achieved based following approaches –
- Creating batch payments into one transaction
- Promoting Bitcoin Cash
- Making the best use of the lightning network
- Adopting EOS and other high–performance blockchains
- Using blockchain-agnostic on-chain blockchain solution – BloXroute
Initiatives For Improving Blockchain Scalability
Achieving blockchain scalability is challenging, therefore several initiatives have been made by the academic community. There are three ways to scale blockchain technology.
Layer 1 (On–chain) solutions
It involves making changes to the code-base of the blockchain itself unlike adding a second layer or off–chain network.
- Segregated Witness or Segwit is a protocol upgrade for the Bitcoin blockchain.
- Sharding which is a method of database that involves breaking large databases into smaller ones.
Layer 2 (Off-chain) solutions
This is the second layer of blockchain scalability used to increase the efficiency and speed of transactions on the blockchain network.
- Sidechains which is an advanced technology allows the creation of secondary blockchain and connect them to the main blockchain.
- Payment channels are the way to conduct transactions outside of the main blockchain network
Achieving scalability for blockchain projects is an essential part of the blockchain development process. Thus, your intelligent blockchain projects need a smart blockchain development partner like www.esrotlabs.com to achieve the desired scalability. We use all the advanced tech stacks to ensure that your projects grow by leap and bound.