Scalability Issue with Bitcoin
Bitcoin's scalability issue primarily revolves around its transaction processing limits. The Bitcoin blockchain can only handle a maximum of approximately 3 to 7 transactions per second (TPS). This limitation arises from its block size of 1 MB and a block time of 10 minutes. During periods of high demand, such as market rallies, the network becomes congested, resulting in delayed transaction confirmations and soaring fees.
This scalability challenge is a significant differentiator between Bitcoin and many altcoins, which often employ various mechanisms to increase throughput. Some altcoins utilize larger block sizes, alternative consensus algorithms, or innovative technologies like sharding or layer-two solutions (e.g., the Lightning Network) to enhance their scalability.
Despite proposed upgrades like Segregated Witness (SegWit) and advancements in second-layer protocols, critics argue that Bitcoin's fundamental design hinders its ability to scale effectively. This has led to the ongoing debate about whether Bitcoin can maintain its status as the leading cryptocurrency or if it will struggle to compete with more scalable altcoin alternatives.
In conclusion, while Bitcoin remains the first and foremost cryptocurrency, its scalability issue raises concerns regarding its long-term viability as a medium for everyday transactions, especially in an increasingly digital economy.