If every transaction is broadcast via the network, does Bitcoin scale?
If every transaction is broadcast via the network, does Bitcoin scale?
The blockchain base layer is not very scalable but layer-2 technologies can be used to greatly increase bitcoin's scale. Lightning Network is one example which uses smart contracts to build a network where payments are routed along a path instead of flooded to every peer. These payments can be nearly as secure and irreversible as blockchain transactions but have much better scalability (as well support instant payments which are much more private). Other possible layer-2 scalability technologies are sidechains or a bitcoin ecash chaumian bank.
See also:
- A trip to the moon requires a rocket with multiple stages
- Capacity increases for the Bitcoin system
- Scalability.