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How to Solve the Scalability Problem of Blockchain: Challenges and Coping Strategies

bitpie
June 06, 2025

Since its inception, blockchain technology has attracted widespread attention and application due to its characteristics of immutability, decentralization, and security. However, with the development of blockchain technology—especially the surge in application demands—the issue of scalability has become increasingly prominent. Scalability, that is, the ability of a system to maintain efficient operation as the load increases, has gradually become a bottleneck for the widespread application of blockchain technology. This article will delve into the scalability issues of blockchain and their solutions, with the hope of providing insights for practitioners in related fields.

I. Manifestations of Scalability Issues

  • Throughput reduction
  • The throughput of a blockchain refers to the number of transactions it can process per unit of time. During peak periods, the Bitcoin network often experiences extended transaction confirmation times, resulting in a poor user experience. This is due to the limited size of each block and the fixed block generation time.

  • Network congestion
  • The increase in the number of users, especially during specific events or market booms, leads to a sharp rise in transaction requests, resulting in network congestion. In such cases, users need to pay higher fees to ensure their transactions are prioritized, which further raises the threshold for participation.

  • Storage demand surges
  • As the historical records of the blockchain continue to accumulate, the amount of data that nodes are required to store keeps increasing. With limited resources, many potential nodes withdraw due to their inability to meet storage demands, leading to a decrease in the level of decentralization within the network.

    How to Solve the Scalability Problem of Blockchain: Challenges and Coping Strategies

    2. Scalability Solutions

    In order to effectively address the scalability issues of blockchain, various solutions have been proposed by both academia and industry.

  • Layered architecture
  • Layered architecture is an effective strategy for addressing scalability issues. By dividing the blockchain network into different layers, with each layer responsible for different tasks, a more optimal allocation of resources can be achieved.

    1.1 Layer 2 Solutions

    The Lightning Network is a second-layer solution built on top of the Bitcoin blockchain. It allows users to conduct multiple transactions within a channel without having to record each transaction on the main chain, significantly increasing the network's throughput.

    1.2 State Channel

    State channels complete the transaction process off-chain, interacting with the blockchain only when opening and closing the channel, thereby reducing the number of on-chain transactions and increasing processing speed.

  • Sharding technology
  • Sharding is the process of dividing a blockchain network into several smaller parts (shards), with each shard independently processing transactions. Users no longer need to wait for the entire network to confirm all transactions; instead, overall processing capacity is increased through multiple shards operating in parallel.

    For example, Ethereum 2.0 plans to introduce sharding technology, which will improve throughput by dividing the network into multiple shards and is expected to significantly enhance the network's scalability.

  • Optimization of Consensus Mechanism
  • The consensus mechanism of a blockchain network largely affects its scalability. The traditional Proof of Work (PoW) mechanism, due to its lengthy processing time and high resource consumption, has become a major obstacle to scalability.

    3.1 Proof of Stake (PoS)

    The Proof of Stake (PoS) mechanism replaces intensive computational work with staking by token holders. Compared to PoW, PoS can confirm transactions more quickly, thereby improving the network's transaction processing capacity.

    3.2 BFT Consensus Algorithm

    Byzantine Fault Tolerance (BFT) consensus algorithms allow network nodes to reach agreement in untrusted environments. Compared to PoW, BFT offers advantages in transaction confirmation time and is more suitable for application scenarios such as private or consortium blockchains.

  • Data Compression Technology
  • Due to the continuous growth of blockchain data, the demand for storage and network bandwidth is also increasing. By adopting data compression techniques, the amount of data that needs to be stored can be reduced, thereby alleviating the network burden.

    For example, the introduction of Merkle trees effectively reduces redundancy during data transmission, which means that when blocks are transmitted between nodes, only the necessary data needs to be sent instead of the complete transaction information.

  • Application of Privacy Technologies
  • As blockchain applications expand, users' demand for privacy is increasing. Technologies that achieve both privacy and security can enhance users' sense of trust without compromising network scalability.

    For example, zero-knowledge proof technology allows users to prove to the network that they possess certain qualifications or conditions without revealing transaction details, enabling rapid transaction confirmation while ensuring privacy.

  • Collaboration within the ecosystem
  • Finally, collaboration and interoperability among various blockchain projects are also important factors for scalability. By building cross-chain solutions, asset transfers and interactions between different blockchains can be achieved, enhancing the overall potential of the network.

    For example, cross-chain projects such as Cosmos and Polkadot are exploring how to connect different blockchain networks to enable the sharing of resources and data.

    Case Analysis

    With the help of real-life cases, we can better understand the effectiveness of the above solutions in practice.

  • Practical Application of Bitcoin's Lightning Network
  • The congestion issues faced by the Bitcoin network prompted the proposal of the Lightning Network. By establishing payment channels, the Lightning Network enables users to conduct fast, small-scale payments off-chain, which significantly improves transaction efficiency and reduces on-chain transaction fees.

  • Sharding Strategy of Ethereum 2.0
  • Ethereum 2.0 plans to address its scalability issues through sharding technology. Each shard will independently process a portion of transactions, greatly increasing the overall system throughput. In the future, it is expected that the Ethereum network's transaction processing capacity could reach several thousand TPS (transactions per second).

    VI. Conclusion

    Scalability issues are one of the major challenges in the development of blockchain technology. To address this problem, the tech community has proposed a variety of effective solutions, including layered architecture, sharding technology, consensus mechanism optimization, data compression, and cross-chain collaboration. These measures can not only improve the throughput and efficiency of blockchain networks, but also enhance their decentralization and security.

    In the future, with continuous technological advancements and the gradual deepening of applications, the scalability issues of blockchain are expected to be better resolved, thereby promoting the prosperous development of the entire blockchain ecosystem.

    Frequently Asked Questions

  • The scalability issues of blockchain mainly affect the following aspects:
  • The blockchain scalability issue mainly affects transaction processing speed, network congestion, and node storage requirements, directly impacting user experience and system stability.

  • What is the Lightning Network and what is its purpose?
  • The Lightning Network is a second-layer solution on Bitcoin that allows users to conduct off-chain transactions to increase transaction speed and reduce fees. It can solve network congestion and improve the payment experience.

  • How does sharding technology specifically improve the scalability of blockchain?
  • Sharding technology divides the blockchain into multiple shards, each of which independently processes transactions, thereby improving the overall processing capacity of the network and facilitating the completion of high-concurrency transactions.

  • How do you view the advantages of the Proof of Stake (PoS) mechanism?
  • Compared to the proof-of-work mechanism, the proof-of-stake mechanism has significant advantages in transaction confirmation time, lower energy consumption, and user-friendliness, and is therefore widely adopted by many emerging blockchains.

  • What is the application prospect of cross-chain technology?
  • Cross-chain technology aims to achieve interoperability between different blockchain networks and is expected to play a key role in asset transfer and data sharing in the future, promoting the overall development of the blockchain ecosystem.

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