Why is scalability important in blockchain?
Asked 3 years ago
I'm struggling to understand the relevance of scalability to blockchain. Why is scalability important in blockchain?
Erich Santana
Tuesday, May 31, 2022
Scalability is the capacity of a blockchain to handle large transaction throughput. Whether a user wants to join a blockchain network, use decentralized applications in a prime-time rush, or break out from a centralized walled garden, the experience should be excellent to return or invite friends to try it. Therefore, scalability is an essential ingredient for a network’s future growth.
The rising number of applications and the adoption of blockchain technology should not weaken the performance of a completely scalable network. When a network scales beyond its baseline needs, it becomes cost-effective to run. Besides, scalability enables blockchains to compete effectively with traditional, centralized ledgers.
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