The bitcoin scalability problem is a consequence of the fact that blocks in the blockchain are limited to one megabyte in size. Bitcoin miner fees for processing bitcoin transactions rose to above $25 per transaction in December 2017, making small payments uneconomical.
Bitcoin’s blocks include the transactions on the bitcoin network. In contrast to Visa’s peak of 24,000 transactions per second, the bitcoin network’s theoretical maximum capacity with the 1MB block size limit sits between 3.3 to 7 transactions per second. Various scaling proposals, some activated, are described below.
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