Blockchain Scalability - Sidechains and Payment Channels

Binance Academy · 2023-03-10T01:44:02.000Z

Introduction Scalability broadly refers to the ability of a system to grow to accommodate increasing demand. In computing, you can boost the performance of your machine by upgrading the hardware so that it is able to perform certain tasks more quickly. When we talk about scalability in blockchains, we mean increasing their ability to manage transactions. Protocols like Bitcoin have multiple strengths, but scalability is not one of them. If Bitcoin ran on a centrally controlled database, it would be relatively easy for the administrator to increase the speed and transfer rate. But Bitcoin's value propositions (such as censorship resistance) require many participants to synchronize a copy of the blockchain.