BLOCKCHAIN SCALABILITY

The evolution of blockchain scaling solutions

Blockchain scaling solutions have helped in the mass adoption of the technology as networks increased their processing capacity

Earlier this month, the second largest cryptocurrency, Ethereum’s developers executed the “Merge,” an upgrade that eliminates mining and dramatically reduces the energy consumption of the world’s second-biggest cryptocurrency. This effectively means that the premier smart contract platform has moved from energy-intensive Proof of work (PoW) protocol to a more scalable Proof of stake (PoS) platform. The novel PoS network would reduce consumption by approximately 99.95%.

Blockchain networks have previously been plagued by scalability trilemma — decentralization, security, and speed. Ethereum’s transition to a newer version is expected to address this challenge. As multiple scalability solutions emerge, they are helping blockchain tech to be adopted by mainstream companies. According to Blockchain data, 81 out of the top 100 companies (based on market cap), are using blockchain tech. Analysts also forecast that the value of the global blockchain market will increase from $4.7B in 2021 to $163.8B by 2029 — at a CAGR of 56.3%.