Navigating the Scalability Maze in Blockchain Technology – An Analysis of Scalability, Transaction Issues and Solutions
Keywords:
Blockchain, On-chain, off-chain, Interoperability, Scalability issues, Consensus, Transaction speed.Abstract
Recently, blockchain has garnered immense attention from both public and private sectors as the most sought-after technology. Despite its potential, scalability remains a critical challenge hindering its full realization. Blockchain provides a secure and transparent network through its features such as trust, data security, decentralization, immutability, and transparency. The potential of blockchain technology to revolutionise numerous industries has attracted a lot of attention in recent years. Scalability, however, is among the major issues preventing its mainstream use. Blockchain networks encounter capacity and speed constraints as they expand in size and complexity, which results in higher transaction fees and delays. The scalability problems with blockchain technology are examined in this paper, along with a thorough discussion of the numerous scaling solutions put out in the literature. The solutions for scalability and transaction speed can be categorized into two main groups - on-chain and off-chain. On-chain solutions include Segwit, block size increase, Sharding, Directed Acyclic Graph and Consensus mechanisms, while off-chain options encompass Interoperability technique includes payment channels, cross-chains, and side-chains and Finally, in this paper, we have covered well-known scalable consensus mechanisms and the future directions of block chain in terms of scalability and transaction throughput.
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