What is Scalability Problem?

Scalability Problem

Scalability issues are a phenomenon that causes a decrease in the speed of virtual currency transactions and a rise in fees.

Since there is a fixed amount of capacity on the blockchain that can process a cryptocurrency transaction at one time, any increase in the volume of virtual currency transactions will cause delays in transactions and a rise in fees, reducing the liquidity of the cryptocurrency.

  • In the case of Bitcoin, processes 1MB once every 10 minutes.
  • For the new Bitcoin Cash, processes 8MB once every 10 minutes

*1MB can process about 4000 transactions. Visa, the famous credit card company, can process about 33.6 million transactions in 10 minutes.

When the 1MB limit is reached, the user has to wait for the next block to be created. If that block also reaches the data limit soon, the user has to wait again, and it takes a long time for the actual transfer to take place.

If you want your transaction to be approved immediately, you will have to pay more in transaction fees.

The scalability problem, where the limited number of transactions that can be written in a single block causes remittance delays and other failures, needs to be fundamentally solved in order for Bitcoin to become popular with the general public.

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