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LogoutBitcoin is an excellent example of blockchain technology’s potential inefficiencies. It takes around ten minutes for Bitcoin’s PoW mechanism to add a new block to the network.
According to estimates, the blockchain network can only handle roughly seven transactions per second at that rate. Other cryptocurrencies, such as Ethereum, outperform the bitcoin network, but they are still constrained by blockchain. For perspective, the legacy Visa brand can process 65,000 transactions per second.
For years, people have been working and trying to find the solutions/answer to this problem. There are presently blockchains with more than 30,000 Transactions per second available.
Another problem is that each block in a blockchain can only carry a limited amount of space data. One of the most critical challenges for the scalability of blockchains in the future has been and continues to be the block size problems.
As mentioned above, the increase in the network will affect the transaction speed and might lead to more redundancy in the process.