How does blockchain technology address scalability issues in the world of digital currencies?

1 answers

• Jan 12, 2022 · 3 years ago
  At BYDFi, we recognize the importance of addressing scalability issues in the world of digital currencies. One of the ways blockchain technology can tackle this challenge is through the implementation of layer 2 solutions like the Lightning Network. This off-chain scaling solution allows for faster and more cost-effective transactions by conducting them outside of the main blockchain. Another approach is through the use of sidechains, which enable the execution of smart contracts and other complex operations without congesting the main blockchain. These solutions help alleviate scalability concerns and enable digital currencies to handle a higher volume of transactions.
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