Challenges in scalability of public blockchains and layer 2 solutions (Zk rollup )

Introduction 

The scalability limitations of public blockchains refer to constraints that hinder their ability to handle a large volume of transactions or accommodate a growing user base efficiently. These limitations have been a significant challenge for widespread adoption of blockchain technology in various real-world applications. The scalability limitations of public blockchains have hindered their widespread adoption in real-world applications. 

• Transaction Throughput

Public blockchains like Bitcoin and Ethereum have limited transaction throughput, meaning they can only process a relatively small number of transactions per second. This limitation becomes more pronounced during periods of high network activity, leading to congestion and delays in transaction confirmation.

• Transaction Fees

High network congestion on public blockchains often results in increased transaction fees as users compete to have their transactions processed quickly. High transaction fees can make microtransactions economically unfeasible and deter users from using blockchain applications for everyday transactions.

• Confirmation Times

Longer confirmation times on public blockchains can impact user experience, especially in applications where real-time transaction finality is required. Waiting for confirmations can introduce delays in payment processing, asset transfers, and other transactions, limiting the usability of blockchain applications.

• Scalability Trilemma

The scalability trilemma, often associated with blockchain technology, posits that achieving scalability, security, and decentralization simultaneously is challenging. Public blockchains typically prioritize decentralization and security over scalability, leading to inherent limitations in transaction throughput and performance.

• Smart Contract Execution

Smart contract execution on public blockchains can be resource-intensive, requiring significant computational power and storage. As the number and complexity of smart contracts increase, it can strain network resources and further exacerbate scalability challenges.

• Storage Requirements

Public blockchains maintain a complete history of all transactions and smart contract states, resulting in significant storage requirements over time. The growing size of the blockchain can pose challenges for network participants, particularly those with limited storage capacity or bandwidth.

• Interoperability

Interoperability between different blockchain networks and protocols is crucial for enabling seamless communication and asset transfer across disparate platforms. However, interoperability challenges can arise due to differences in consensus mechanisms, data formats, and governance models, limiting the scalability and utility of blockchain applications.

Conclusion 

Addressing scalability limitations is essential for unlocking the full potential of blockchain technology and facilitating its widespread adoption in real-world applications. Solutions such as layer 2 scaling solutions (e.g., zk-rollups, sidechains), sharding, improved consensus algorithms, and protocol upgrades are being actively developed and implemented to enhance scalability while maintaining security and decentralization. Additionally, advancements in off-chain scaling techniques, network optimization, and governance models can further improve the scalability and usability of public blockchains for diverse use cases.