The Scalability Challenge refers to the technical difficulty of increasing a blockchain network’s capacity to process a larger volume of transactions or computations without compromising its decentralization or security. This limitation often results in high transaction fees and slow confirmation times during periods of high network demand. It remains a primary obstacle to the widespread adoption of many decentralized applications.
Context
Addressing the Scalability Challenge is a central focus for ongoing research and development in the blockchain space, with numerous layer-1 and layer-2 solutions being explored. Debates revolve around the trade-offs between various scaling approaches, such as sharding, rollups, and sidechains, concerning their security models and decentralization properties. Overcoming this challenge is critical for the long-term viability of decentralized finance and Web3.
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