Scaling Solution

Definition ∞ A Scaling Solution is a technology or protocol modification designed to increase the transaction processing capacity and efficiency of a blockchain network. These solutions address limitations in throughput and latency inherent in many decentralized systems. They aim to allow blockchains to handle a larger volume of users and operations. This is crucial for widespread adoption.
Context ∞ Scaling solutions are a dominant theme in cryptocurrency news, with ongoing advancements in Layer 2 networks like rollups and sidechains, as well as Layer 1 improvements such as sharding and new consensus algorithms. The objective is to enable widespread adoption of blockchain technology by making networks faster, cheaper, and more responsive for a global user base.