A scalable protocol is a blockchain or digital asset system capable of handling an increasing volume of transactions or users without performance degradation. This characteristic is crucial for the widespread adoption of digital assets, as current blockchain technologies often face limitations in processing speed and throughput. Scalable protocols employ various techniques, such as sharding, layer-2 solutions, or alternative consensus mechanisms, to enhance their capacity. Achieving high scalability while maintaining decentralization and security remains a primary challenge in blockchain development.
Context
The quest for a truly scalable protocol is a central theme in blockchain research and development, with numerous projects competing to deliver solutions. News frequently reports on new technological advancements and network upgrades aimed at improving transaction speeds and reducing costs, which are vital for digital assets to compete with traditional payment systems.
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