Scalability Solutions

Definition ∞ Scalability solutions are technological advancements designed to increase the transaction processing capacity of a blockchain network. These solutions aim to handle a greater volume of transactions efficiently without compromising security or decentralization. They are crucial for enabling widespread adoption of blockchain technology.
Context ∞ The pursuit of effective scalability solutions is a primary driver of innovation in the blockchain sector. Current efforts are concentrated on various approaches, including Layer-2 protocols, sharding, and new consensus mechanisms, each presenting distinct advantages and challenges. Debates frequently arise concerning the optimal balance between transaction throughput, latency, and the maintenance of network security and decentralization.