Blockchain 101 Episode 62 – Why does Bitcoin need to scale?

Bitcoin’s current block size limit is 1MB and processes about 7 transactions per second.

With the constant increase in Bitcoin’s trading volume, the Bitcoin Network finds it difficult to process transaction records fast, resulting in network congestion.

The Bitcoin Blockchain receives thousands of transactions on the Blockchain, leading to an increase in transaction fees as people pay more to process their transactions first. Bitcoin transaction costs can be as high as tens of US dollars. When the network is congested, Bitcoin transactions may take several days to process. Consequently, a discussion on how to scale capacity has began.

Since 2013, there have been numerous proposed scalability solutions. Some proposed increasing the block size limit while some proposed removing redundant information from the block.