What is the Scalability Problem of Crypto Assets?

After the price rise in 2017, the number of investors has increased rapidly, and the topic of “scalability problems” has been spoken of often. Under these circumstances, we are working to solve the scalability in order to increase the processing speeds of all crypto assets. In this article, I will talk about the scalability issue.

What is the Scalability Problem of Cryptographic Assets

Cryptographic assets are mainly used for payments and transactions. In addition to this, practicality is also increasing, and the potential of crypto assets is expanding. However, it is difficult to increase practicality without solving the technical problems of crypto assets. In particular, solving the technical issues called “scalability problems” is said to be top priority.
The “scalability problem” is the problem that processing speeds and payment delays are decreased as the blockchain network expands as more people use the blockchain. Because the blockchain block capacity and block generation speeds are constant, only the amount of data that needs to be processed will increase. The more widespread crypto assets are in the world, the more serious the problem becomes. Many people are moving towards solving such scalability problems.

Scalability problem for each crypto asset

There are still many crypto assets with scalability issues. Each crypto asset is being developed towards resolution. Here, we will introduce a solution to the scalability problem of each crypto asset that has scalability problems.


The scalability issues are noticeable with Bitcoin. The block capacity of Bitcoin is limited to 1MB, and the speed of transaction processing is also quite slow. Bitcoin blocks are generated once every 10 minutes, and the trading speed is said to be about 45 minutes. Because it cannot even process eight transactions in one second, transaction processing becomes delayed.
Another problem is that fees charged to minors are rising to reduce the approval latency for Bitcoin transactions. However, to solve the scalability problem, the “Lightning Network” has emerged as a powerful technology. The Lightning Network is a technology that processes transactions off-chain and sends only efficient transactions in blockchain form. It is already used for Bitcoin transactions and is actively used for Bitcoin trading since the second half of 2018.
Currently, nearly 600 BTC bitcoins are being traded. The background is the rapid growth of the Lightning Network. The current number of channels in the Lightning Network exceeds 20,000. Because of rapid growth, many investors are looking to 2019. If the Lightning Network is growing, it may not be far from solving the Bitcoin scalability problem.


Ripple also has scalability issues, but it is said that it can process transactions faster than Bitcoin and can process 1,500 transactions per second. This is because Ripple has an approval form of PoC (proof of consensus). In this approval form, the record of all transactions is called “Leisure” and the approver of the transactions is called a “Validator.” Not everyone can be a validator, but the person who has contributed to the approval of transaction records is selected as a validator.
Because this validator is chosen by trusted persons, it takes less time to approve transactions. As a result, it takes about 5 seconds to approve transactions. From this, Ripple maintains higher performance than other crypto assets, including cost and scalability. Among many crypto assets, it is said to be a crypto asset far from having scalability problems.


Ethereum has been used by an increasing number of users in the last few years with processing speeds becoming slower and slower. Due to the spread of Dapps, data used for development will also be used. Currently Ethereum can process 16 transactions per second. One block is generated every 15 seconds on Ethereum.
Ethereum is actively developing to solve scalability problems. As a solution, they are trying to introduce the Plasma chain. The Plasma chain is a technology in which side chains are formed on Ethereum’s blockchain where high-speed processing is performed on the side chain to increase transaction processing speeds on the blockchain. This technology reduces the processing data on the main blockchain, which makes data processing faster and also helps to eliminate transaction congestion to prevent higher fees.
In addition, another measure called “The Raiden Network” has emerged to solve the scalability problem for Ethereum. The Raiden Network is a project to expand Ethereum’s original functions. By using the Raiden Network, you can complete trading outside the blockchain.
The Raiden Network supports ERC20 tokens, which offers low commissions and can handle 1 million transactions per second. Currently, the Raiden Network is in development stage, so implementation is still pending. Once the Raiden Network is completed, Ethereum’s processing power will rise, and is said to exceed credit card processing. Ethereum’s scalability problem solving has been advanced to the verification stage, and may not be far till realization in the future.

Is the solution to the scalability problem nearing?

In order to promote practical use of crypto assets, it is essential to solve scalability problems. For crypto assets that are often used for payments etc., poor scalability performance leads to life and death issues.
Let’s pay attention to how each crypto asset will tackle the scalability problem during 2019.