The lack of scalability is the biggest obstacle that the blockchain space is facing right now. In this two-parter, we will be looking at the various blockchain scalability techniques developers are working on to fix this problem. Today, in part 1, we will be looking at Layer-1 scalability techniques.
At a glance, these techniques are as follows:
- Increasing Block Size: When you increase the size of individual blocks, you can clear transactions faster. However, bulkier blocks can be difficult to mine, which leads to more centralization.
- Reducing Block Time: Reducing the block time and mining at a faster rate can increase chain speed. However, it could lead to more orphan blocks (aka perfect legit blocks that must be discarded by the network).
- Consensus Algorithms: Choosing the consensus algorithm which gives you sufficient speed without sacrificing decentralization could be crucial.
- Sharding: In sharding, we split the entire blockchain state (aka all the data stored within the blockchain) into smaller chunks called “shards.” The whole network can process these shards parallelly and execute operations faster.
If you want to know more, then click the “Savvy” button above. If you want a deeper dive, click on “Genius.” Otherwise, stay tuned for part 2 where we will explore Layer-2 Scalability Techniques.