Blockchain & Cryptocurrency Glossary

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Scalability

1 min read
Pronunciation
[skay-luh-bi-luh-tee]
Analogy
Scalability is like widening a highway to accommodate more cars without causing traffic jams.
Definition
The capacity of a blockchain to handle increasing transaction volume, user activity, and data growth without compromising performance or security.
Key Points Intro
Scalability addresses throughput, latency, and resource constraints in blockchain networks.
Key Points

Throughput: transactions per second a network can process

Latency: time to confirm or finalize a transaction

State growth: storage requirements for nodes

Trilemma trade-off: security, decentralization, and scalability

Example
Ethereum’s shift to Proof of Stake and implementation of sharding aim to scale network throughput from ~15 TPS to thousands of TPS.
Technical Deep Dive
Layer 1 solutions include increasing block size, reducing block time, or upgrading consensus algorithms (e.g., PoS). Layer 2 approaches—rollups, state channels, sidechains—offload transactions off-chain and post compressed proofs on-chain. Sharding splits state and transaction processing across multiple committees, requiring cross-shard communication protocols.
Security Warning
Aggressive scaling measures can weaken decentralization or introduce new attack surfaces (e.g., cross-shard exploits).
Caveat
No one-size-fits-all solution; different workloads and security models require tailored approaches.

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