[{"data":1,"prerenderedAt":346},["ShallowReactive",2],{"api/learn-center-post-en-what-is-blockchain-scaling":3,"footer-en":57,"learn/blockchain/what-is-blockchain-scaling-en-seo":255,"navigation-en-learn-center":260,"api/learn-categories-en":307},{"seo":4,"locale":28,"breadcrumbs":29,"excerpt":37,"featuredImage":38,"components":39,"title":5,"formattedPublishedAt":50,"geofencings":51,"category":52,"pagination":54,"campaignExternalId":8},{"title":5,"metaTitle":6,"metaDescription":7,"keywords":8,"metaRobots":8,"structuredData":9,"metaImage":10,"metaSocial":18,"canonicalURL":8,"localizations":19},"What is blockchain scaling?","What is blockchain scaling? - Bitstamp Learn Center","What is blockchain scaling? What are implementations that have helped blockchains grow bigger and faster? - Learn more on the Bitstamp Learn Center",null,{},{"url":11,"mime":12,"ext":13,"width":14,"height":15,"name":16,"alt":17},"bitstampImageUrl/1920x1080px_illustrations_learningcenter_13svg_9e0b10b7e4_18061d9c25.svg","image/svg+xml",".svg",192,108,"1920x1080px_illustrations_learningcenter_13svg_9e0b10b7e4.svg","",[],[20,23,26],{"pathname":21,"locale":22},"/en-gb/learn/blockchain/what-is-blockchain-scaling/","en-GB",{"pathname":24,"locale":25},"/es/learn/blockchain/what-is-blockchain-scaling/","es",{"pathname":27,"locale":28},"/learn/blockchain/what-is-blockchain-scaling/","en",[30,34],{"id":31,"text":32,"url":31,"asUrl":33},"/learn/blockchain/","Blockchain technology",true,{"id":35,"text":5,"url":27,"asUrl":36},"what-is-blockchain-scaling",false,"\u003Cp>Even though \u003Ca href=\"/learn/blockchain/what-is-a-blockchain/\">blockchains\u003C/a> might have been intended to replace the traditional banking system, few of the early developers anticipated their astronomical growth. For that reason (and because the process is really, really difficult), no mechanisms were put in place that would enable them to be \u003Cstrong>scaled\u003C/strong>, or simply put, grow bigger and faster. But that is exactly what their exponential, grand-scale adoption across the globe is calling for right now.\u003C/p>\n",{"url":11,"mime":12,"ext":13,"width":14,"height":15,"name":16,"alt":17},[40],{"component":41,"props":42,"content":43,"secondaryContent":47,"ctas":48,"secondaryCtas":49,"ctasNoMarginTop":36},"section.full-text",{"centered":36,"withoutSectionContainer":36},{"text":44,"width":45,"align":46},"\u003Cp>If they are to compete with major payment systems around the globe – e.g. Visa and Mastercard – cryptocurrencies need to step up their game. While Visa and Mastercard reportedly reach thousands of transactions per second, cryptos are lagging far behind. \u003Ca href=\"/learn/cryptocurrency-guide/what-is-ethereum-eth/\">Ethereum\u003C/a>, for instance, caps at 20 transactions per second, \u003Ca href=\"/learn/cryptocurrency-guide/what-is-bitcoin-btc/\">Bitcoin\u003C/a> at 7, and \u003Ca href=\"/learn/cryptocurrency-guide/what-is-litecoin-ltc/\">Litecoin\u003C/a> at 56, while some claim \u003Ca href=\"/learn/cryptocurrency-guide/what-is-bitcoin-cash-bch/\">Bitcoin Cash\u003C/a> could potentially reach three digits. To address this issue, the developers of major blockchains have come up with a variety of solutions.\u003C/p>\n\u003Ch3>Blockchain Scaling Essentials\u003C/h3>\n\u003Cul>\n\u003Cli>Scaling is necessary to increase the number of transactions per second.\u003C/li>\n\u003Cli>One solution is either increasing block size or reducing block time.\u003C/li>\n\u003Cli>Bitcoin’s solutions include SegWit, which virtually increases the block size and facilitates the implementation of layer 2 solutions.\u003C/li>\n\u003Cli>Ethereum’s solutions include proof of stake.\u003C/li>\n\u003C/ul>\n\u003Ch2>Bitcoin’s scaling solutions\u003C/h2>\n\u003Ch3>Increasing block size and reducing block time\u003C/h3>\n\u003Cp>Bitcoin’s \u003Ca href=\"/learn/crypto-101/what-is-block-size/\">block size\u003C/a> limit was set a year after its conception. At the time, the new block size limit of 1 MB was not problematic. The network was not as busy, and transactions were never large or numerous enough to fill up the 1 MB blocks.\u003C/p>\n\u003Cp>But as Bitcoin’s popularity grew, it became clear that a 1 MB block size limit was not enough for the ever-growing community of Bitcoin users. A block size increase \u003Cstrong>from 1 MB to 8 MB\u003C/strong> was proposed. Because the community could not reach an agreement, the blockchain was \u003Cstrong>\u003Ca href=\"/learn/crypto-101/what-are-blockchain-forks/\">forked\u003C/a>\u003C/strong>.\u003C/p>\n\u003Cp>One part of the community stuck with the original Bitcoin Core blockchain and its 1 MB block size limit. The other part opted for the Bitcoin Cash fork and increased the block size limit first to 8 MB, and later to \u003Cstrong>32 MB\u003C/strong>. With blocks currently 32 times as large, Bitcoin Cash can process more transactions in the same time.\u003C/p>\n\u003Cp>Another way of increasing the network throughput is by reducing \u003Ca href=\"/learn/crypto-101/what-is-block-time/\">block time\u003C/a>. This was the case with the Litecoin blockchain, which began as a copy of Bitcoin’s source code. The key difference is that its block time, just 2.5 minutes, is a full 4 times faster than Bitcoin’s. This lets it process transactions more quickly, achieving a peak throughput of 56 transactions per second.\u003C/p>\n\u003Ch3>SegWit\u003C/h3>\n\u003Cp>Another solution that addresses scaling across Bitcoin and its altcoins is \u003Ca href=\"/learn/blockchain/what-is-segregated-witness-segwit/\">\u003Cstrong>Segregated Witness\u003C/strong> (\u003Cstrong>SegWit\u003C/strong>)\u003C/a>. At first, SegWit was aimed at addressing transaction malleability. Before its implementation, it was possible to change the transaction ID and trick the sender into sending coins twice. Its implementation has made any feature that relied on unconfirmed transactions less risky. But its potential is far greater than that, as it introduces a new concept called \u003Cstrong>block weight\u003C/strong>.\u003C/p>\n\u003Cp>Block weight is a mashup of block size with and without the signature data, which has a limit of four times higher than before. This means that SegWit virtually increases the block size \u003Cstrong>from 1 MB to 4 MB\u003C/strong>. Theoretically, this enables a transaction throughput that is four times as high. And, while this sounds promising in theory, experts believe that the network’s condition will not allow for a block size greater than 2.1 MB. In reality, the average block size is nowadays \u003Ca href=\"https://www.blockchain.com/charts/avg-block-size\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">only somewhat larger than 1 MB\u003C/a>.\u003C/p>\n\u003Cp>Another important aspect of SegWit is that it enables the implementation of so-called \u003Cstrong>\u003Ca href=\"/learn/blockchain/what-are-layer-2-solutions/\">layer 2 solutions\u003C/a>\u003C/strong>. These are blockchain scaling solutions, such as the \u003Cstrong>\u003Ca href=\"/learn/blockchain/what-is-the-lightning-network/\">Lightning Network\u003C/a>\u003C/strong>, that aim to move bulky chunks of data from blockchains to so-called side chains.\u003C/p>\n\u003Ch2>Ethereum’s scaling solutions\u003C/h2>\n\u003Ch3>Proof of stake\u003C/h3>\n\u003Cp>To enable a higher throughput, Ethereum’s devs have come up with \u003Cstrong>\u003Ca href=\"/learn/crypto-101/what-is-proof-of-stake-pos/\">proof of stake\u003C/a>\u003C/strong>. This protocol changes the block validation process by replacing miners with validators. As a validator, you first have to lock or lock some of your ether in the blockchain as a stake or security. After that, you start validating blocks that you think can be added to the blockchain by placing a bet on them, to put it simply. The higher your \u003Cstrong>stake\u003C/strong>, the greater the likelihood that your block will be chosen, and for you to get the block reward. But if you bet on the wrong block, your invested stake might get lost.\u003C/p>\n\u003Ch3>Casper Protocol\u003C/h3>\n\u003Cp>To implement proof of stake, Ethereum developers introduced the \u003Cstrong>Casper protocol\u003C/strong>. With it, they have started the transformation of Ethereum to proof of stake, a process known as Ethereum 2.0. This is currently a hybrid system between PoW and PoS. While most transactions are still validated through PoW, PoS is also already in action. A number of Ethereum users have locked some of their ETH in the blockchain for a two year period to be eligible to earn staking rewards. In the meanwhile, Ethereum developers will continue developing Ethereum 2.0 until it reaches a state where PoW is no longer necessary.\u003C/p>\n\u003Ch2>Scaling is a must\u003C/h2>\n\u003Cp>The crypto community is growing, and the number of crypto transactions is steadily increasing. Blockchain scaling is thus inevitable, which explains all the tweaks and upgrades that are being implemented or developed. Blockchain development never rests, with new and exciting solutions always emerging on the horizon.\u003C/p>\n","full","left",{"text":17},[],[],"August 9th, 2022",{},{"title":32,"url":31,"geofencings":53},{},{"previous":55,"next":56},"/learn/blockchain/what-is-blockchain-interoperability-the-future-of-connected-chains/","/learn/blockchain/what-is-byzantine-fault-tolerance-bft/",{"ready":33,"sections":58,"disclaimer":253,"copyright":254},[59,102,130,153,190,209],{"title":60,"content":17,"items":61},"About",[62,67,72,77,82,87,92,97],{"noFollow":33,"isExternal":36,"name":63,"value":64,"isEmail":36,"isPhoneNumber":36,"isText":36,"showOnDesktop":33,"showOnMobile":33,"attachment":65,"geofencings":66},"Who We 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Kingdom",{},{},{"title":210,"content":17,"items":211},"Contact",[212,217,221,225,229,233,238,243,248],{"noFollow":36,"isExternal":36,"name":213,"value":214,"isEmail":36,"isPhoneNumber":36,"isText":36,"showOnDesktop":33,"showOnMobile":33,"attachment":215,"geofencings":216},"Customer 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20 3868 9628","+442038689628",{},{},{"noFollow":36,"isExternal":36,"name":239,"value":240,"isEmail":36,"isPhoneNumber":33,"isText":36,"showOnDesktop":33,"showOnMobile":33,"attachment":241,"geofencings":242},"+1 800 712 5702","+18007125702",{},{},{"noFollow":36,"isExternal":36,"name":244,"value":245,"isEmail":36,"isPhoneNumber":33,"isText":36,"showOnDesktop":33,"showOnMobile":33,"attachment":246,"geofencings":247},"+352 20 88 10 96","+35220881096",{},{},{"noFollow":36,"isExternal":36,"name":249,"value":250,"isEmail":36,"isPhoneNumber":33,"isText":36,"showOnDesktop":33,"showOnMobile":33,"attachment":251,"geofencings":252},"+65 3105 1676","+6531051676",{},{},"\u003Cp>Please read the general \u003Ca href=\"/legal/risk-warning/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Risk Warning\u003C/a>, and \u003Ca href=\"/legal/uk-investment-risk-warning/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Risk Summary\u003C/a> for UK residents before investing in crypto-assets. \u003C/p>\n\u003Cp>Crypto-assets services are provided by the following Bitstamp legal entities depending on client residency: (1) Bitstamp Europe S.A., which is authorized by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg as a payment institution (licence number Z00000012) and crypto-asset service provider (licence number N00000003); Registered address: 40, avenue Monterey, L-2163 Luxembourg, Grand Duchy of Luxembourg; Registration number: B196856; (2) Bitstamp UK Ltd., which is registered with the Financial Conduct Authority (FCA) in the UK for the provision of certain cryptoassets activities under the Money Laundering Regulations (Firm Reference Number 978690); Registered address: 5 New Street Square, EC4A 3TW London, United Kingdom; Registration number: 14174243; (3) Bitstamp Ltd.with its registered address at 5 New Street Square, EC4A 3TW London, United Kingdom and registration number: 8157033; (4) Bitstamp Global Ltd., which is registered as a Virtual Asset Service Provider in the British Virgin Islands and is supervised by the British Virgin Islands Financial Services Commission (FSC); Registered address: Floor 4, Banco Popular Building, Road Town, Tortola VG1110, British Virgin Islands; Registered number: 2086429; and (5) Bitstamp Asia Pte Ltd, which is authorized by the Monetary Authority of Singapore (MAS) as a major payment institution (licence number PS20200667); Registered address: 63 Chulia Street, OCBC Centre East, #15-01, Singapore 049514; Registered number: 202016687K;\u003C/p>\n\u003Cp>Virtual currency services to US residents are provided by Bitstamp USA, Inc., which is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Licensed as a Money Transmitter by the New York State Department of Financial Services. Review a \u003Ca href=\"/legal/usa-inc/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">list of its licenses and other registrations\u003C/a> (NMLS number \u003Ca href=\"https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1905429\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">1905429\u003C/a>) for more information; Registered address: 85 Willow Road, Menlo Park, CA 94025, United States of America; Registered number: 5481543.\u003C/p>\n\u003Cp>Investment services with regards to trading in crypto derivatives are provided by Bitstamp Financial Services Ltd., which is authorized and supervised by the Slovenian Securities Market Agency (ATVP) as a MiFiD investment firm. Trading crypto derivatives carries significant risks and may result in substantial losses. Please trade responsibly and ensure you understand the associated risks. You can find more about the risks \u003Ca href=\"/legal/financial-services/general-terms-and-conditions/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">here\u003C/a>. To help you understand the risks involved we have put together a series of \u003Ca href=\"/derivatives/key-information-documents/\" target=\"_blank\" rel=\"noopener noreferrer\">Key Information Documents (KIDs)\u003C/a> highlighting the risks and rewards related to each derivatives contract. Crypto derivatives trading is not available to customers in the US, Canada, Japan and some other countries. Bitstamp Financial Services Ltd. does not provide crypto-asset services.\u003C/p>\n\u003Cp>To find out more about which Bitstamp entity you receive services from, please check the Profile/My information in your Bitstamp account. You can read more about our legal terms, policies and disclosures \u003Ca href=\"/legal/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">here\u003C/a>.\u003C/p>\n","\u003Cp>All rights reserved © 2026 Bitstamp by Robinhood. \u003Ca href=\"https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1905429\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">NMLS #1905429\u003C/a>\u003C/p>\n",{"description":7,"ogDescription":7,"ogImage":256,"twitterImage":256,"twitterSite":257,"twitterCreator":257,"twitterCard":258,"twitterTitle":6,"twitterDescription":7,"titleTemplate":259},"https://assets.bitstamp.net/msc/_ipx/enlarge_true&f_png&fit_cover&q_85&s_1200x630/bitstampImageUrl/1920x1080px_illustrations_learningcenter_13svg_9e0b10b7e4_18061d9c25.png","@Bitstamp","summary_large_image","%s",{"items":261,"ready":33,"platformButtonText":303,"backButtonText":304,"logInButtonText":305,"signUpButtonText":306},[262,266,269,272,275,278,281,286,289,294,299],{"headerName":263,"sidemenuName":134,"url":135,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":264,"submenu":265,"tag":17},"Institutions",{},[],{"headerName":126,"sidemenuName":126,"url":127,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":267,"submenu":268,"tag":17},{},[],{"headerName":149,"sidemenuName":149,"url":150,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":270,"submenu":271,"tag":17},{},[],{"headerName":106,"sidemenuName":106,"url":107,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":273,"submenu":274,"tag":17},{},[],{"headerName":116,"sidemenuName":116,"url":117,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":276,"submenu":277,"tag":17},{},[],{"headerName":121,"sidemenuName":121,"url":122,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":279,"submenu":280,"tag":17},{"geofencing-uk":33},[],{"headerName":282,"sidemenuName":282,"url":283,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":284,"submenu":285,"tag":17},"Markets","/markets/",{},[],{"headerName":111,"sidemenuName":111,"url":112,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":287,"submenu":288,"tag":17},{},[],{"headerName":290,"sidemenuName":290,"url":291,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":292,"submenu":293,"tag":17},"Blog","https://blog.bitstamp.net/",{},[],{"headerName":295,"sidemenuName":295,"url":296,"noFollow":36,"showInHeader":33,"showInSidemenu":33,"geofencings":297,"submenu":298,"tag":17},"Learn","/learn/",{},[],{"headerName":300,"sidemenuName":300,"url":107,"noFollow":36,"showInHeader":36,"showInSidemenu":33,"geofencings":301,"submenu":302,"tag":17},"Get Bitstamp by Robinhood app",{},[],"Go to platform","Back","Log in","Get started",[308,310,314,318,322,326,330,334,338,342],{"title":32,"url":31,"geofencings":309},{},{"title":311,"url":312,"geofencings":313},"Company profiles","/learn/company-profiles/",{},{"title":315,"url":316,"geofencings":317},"Crypto 101","/learn/crypto-101/",{},{"title":319,"url":320,"geofencings":321},"Crypto definitions","/learn/crypto-definitions/",{},{"title":323,"url":324,"geofencings":325},"Crypto trading","/learn/crypto-trading/",{},{"title":327,"url":328,"geofencings":329},"Cryptocurrency guide","/learn/cryptocurrency-guide/",{"geofencing-uk":33},{"title":331,"url":332,"geofencings":333},"People profiles","/learn/people-profiles/",{},{"title":335,"url":336,"geofencings":337},"Security","/learn/security/",{},{"title":339,"url":340,"geofencings":341},"Tutorials","/learn/bitstamp-tutorials/",{},{"title":343,"url":344,"geofencings":345},"Web3","/learn/web3/",{},1773313043192]