Image source: zdnet
By: Nibras Muhsin | QA Engineer | Blockchain Industry Consultant | MBA
Right from 2020 till the time of this writing, the world had lived in unprecedented times, as no one was sure of what would happen next or even when. Everything happened so fast in ways that no one prepared for. Amidst all these, the most noticeable changes within this are the increase in the value of cryptocurrency. The whole world was quick to adopt the virtual means of doing things.
A little wonder why they would hope for in “virtual Coin,” hence an increase in its value. For instance, Bitcoin, which was way lesser than $10,000, rose to as high as $50,000. While this is fantastic news to the ears of crypto traders and investors, very few people have adopted this mode of transaction. However, if more people would use this technology in their daily transactions, it would influence scalability on cryptocurrency.
Many have argued that if Jack, an average consumer, wants to buy groceries at a store, decides to use Bitcoin, it would affect its scalability. This brings us to one important question; what is scalability, and how does the inclusion of the masses affect them?
Scalability is referred to as one of the major problems of blockchains since the advent of Bitcoin. Scalability is referred to as the Transaction Per Second (TPS). However, it entails a lot more. Research through a paper showed that scalability involves an increase in throughput, TPS ( Transaction Per Second), and latency. In the real sense, any system can attain higher TPS than other standard systems by adjusting its mechanisms or some of its parameters in a decentralized system. With the ever-increasing acceptance of blockchain, several complications have ensued, making the system imperative to redesign.
The growing number of transactions caused by the adoption of masses has led to an increase in confirmation time for a trade. As much as 200,000 transactions were left unconfirmed at some point in a single day. Furthermore, the cost of network transaction fees has also increased as a result as it has risen to as high as $60. The system’s computing power has also increased making it a lot more difficult for the block and the energy needed to mine a block. The significant increase in blockchain caused by quick adoption has led to more complications in terms of processing.
As more people adopt blockchain technology (cryptocurrency), the transaction increases, while the speed of transactions slows down and the cost of transaction increases. Therefore, scaling has become imperative to help in the adoption of the masses and bring about even wider acceptance. Ultimately, it is essential to create more designs needed to ensure the scalability of the blockchain to ensure that the enormous data that needs to be processed as a result of the increasing transactions are carried out seamlessly and without complications.