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As cryptocurrencies continue to develop all over the world, we keep hearing new projects talking about the importance of scalability, but in most cases, their outcries for a better framework are quite vague.
This doesn’t mean that they’re wrong. Scalability is probably the aspect of cryptocurrencies that will keep them alive in the long run. Why? Because without good scalability to accommodate more and more people, the technology loses its primary value: speedy and efficient transactions.
When does scalability become an issue?
In order to determine the importance of this crucial part of the blockchain, we need to look at the most popular cryptocurrency out there: Bitcoin. Nearly every single crypto that has been created after Bitcoin has tried to one-up the pioneer but fails to come close to its valuation.
Despite the “outdated” nature of the Bitcoin blockchain, it’s still one of the most in-demand cryptocurrencies out there, and therefore one of the most “expensive”. Even though the technology which Bitcoin is built upon cannot survive the rapid development phase of the tech industry in the future, people still cling to it, hoping for an update or some kind of modification that will ensure its survivability.
Why would Bitcoin not survive in its current state? What’s wrong with it? Well, the very same thing this article is about. It has very limited scalability due to its limited block size for recording transactions and verifying them through the appropriate hash.
What does the block size have to do with anything?
The current block size for Bitcoin is 1 MB, which pales in comparison to other coins, but is still quite active regardless. This is because of the number of Bitcoin transactions that happens nearly every minute nowadays.