Scalability Solution

Definition ∞ A scalability solution is a technology or method designed to increase the transaction processing capacity of a blockchain network. These solutions aim to address limitations in speed and cost that can arise as a network gains more users and activity. They can operate either on the main blockchain (layer-1) or on separate, connected networks (layer-2). The goal is to allow networks to handle a greater volume of transactions efficiently.
Context ∞ Scalability solutions are a constant topic of discussion and development within the cryptocurrency ecosystem, frequently featured in news about network upgrades and technological advancements. Different approaches, such as sharding or state channels, are continually being evaluated and implemented. The effectiveness of these solutions is critical for determining a blockchain’s suitability for mass adoption and complex decentralized applications.