If you know about blockchain, there is a strong chance that you must have heard the word "scalability" as well. Well, this is one of the major issues with blockchain. Scalability in blockchain simply means how many transactions a blockchain can handle per second. If someone tells you that some blockchain is highly scalable, you should understand that that particular blockchain can handle many transactions per second(tps).
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The most famous blockchain, that is bitcoin has had the issue of scalability, and even now it is facing this issue. You might have noticed that sometimes, it takes hours for bitcoin to be transferred to another wallet address, that's because Bitcoin is not fast. In other words, Bitcoin is not scalable. Right now, Bitcoin can handle only 7tps and that's very low.
Moving on to the next famous blockchain of ethereum which is also very slow. Right now, Ethereum can handle up to 20tps. This is again very less when we compare it to Visa which is capable of handling 1700tps.
Importance of Scalability
Right now, the scalability might not be a big issue in blockchain as the userbase is very small but in the future, with increased adoption of blockchain technology, scalability will play a big role in the success of a blockchain.
A blockchain can not realize its full potential if it is not scalable. A scalable blockchain increases the efficiency of blockchain, decreases the cost of operations which in turn increases the profitability, and most importantly users develop confidence in using that blockchain.
Matic's Scalability Solution For Ethereum
Matic Network, which is known as the blockchain scalability solution is claiming that it can power Ethereum blockchain to a whopping 7200tps. Matic Network has been testing this functionality for two months and in a recent blog post, they said that they can help Ethereum to reach a speed of 7200tps.
The Ethereum blockchain has faced issues of network congestion as it is one of the busiest blockchains out there. Ethereum 2.0 is supposed to fix the scalability issues but that might take some time and Efhereum desperately needs scalability right now. With the DeFi craze, the congestion will only keep on increasing. So, Ethereum could make use of Matic Network's solution to enhance scalability.
Even if Ethereum can handle half of the 7200tps with Matic's new upgrade, it will still be twice as fast as Visa and we all know that Visa is fast. I think the number of people transacting on Ethereum is going to grow on a large scale because of DeFi and Matic might be a savior for Ethereum.
This is not financial advice. These are personal thoughts and they are meant for information purposes only.DYOR before investing.
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