Blockchain and Scalability

Bitcoin has shown great utility around the world with the drastic increase in its value and global consensus method of proof-of-work (POW). Over the years after the revolution in the digital transaction space, we are looking at major scalability issue with old POW consensus method and bitcoin peak limit of processing only 7 transactions per second. With more companies trying to adopt blockchain to modify their existing systems, blockchain working on old consensus methods and with scalability issues can't deliver the optimal solution. Specifically, with new trends like smart contracts and DAPPs, much better performance is needed to support any actual business applications. Such requirements are pushing the new platforms away from old methods of consensus and adoption of off-chain solutions. In this paper, we discuss various scalability issues with the Bitcoin and Ethereum blockchain and recent proposals like the lighting protocol, sharding, super quadratic sharding, DPoS to solve these issues. We also draw the comparison between these proposals on their ability to overcome scalability limits and highlighting major problems in these approaches. In the end, we propose our solution to suffice the scalability issue and conclude with the fact that with better scalability, blockchain has the potential to outrageously support varied domains of the industry.