Current Scalability Challenges on Ethereum
Ethereum faces challenges due to Proof of Work (PoW) and its limited capacity. The network can only process 15 transactions per second. This causes congestion, delays, and high costs during periods of high demand.
The scalability trilemma shows the difficulty of balancing security, decentralization, and scalability. Decentralization improves security but can slow down speed. Proof of Stake (PoS) is more efficient than PoW because it selects validators faster.
Network Congestion
Congestion on the Ethereum network is a major challenge. Its limited capacity causes the network to become overloaded during times of high demand. This causes delays in confirming transactions, affecting the user experience.
High Transaction Fees
High transaction fees on Ethereum are a major obstacle. When the network is full, users have to pay more to have their transactions prioritized. This can make some applications and activities on the network unviable.
Finding solutions to increase Ethereum's capacity without losing security and decentralization is a challenge. Approaches such as layer 2 solutions, sharding, and the transition to Proof of Stake are being explored to solve these problems.
