Blockchain Scalability: State Channels are Winning Big Time!

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The more crypto adoption is gaining momentum, the more it becomes challenging for blockchain networks like Bitcoin and Ethereum to provide participants with the due user experience. The original design of the network gets less and less suitable to process the growing transaction numbers without losing speed and increasing transaction fees. The growing number of decentralized applications (dApps) creates an extra load on networks. As dApps are getting more complicated, they require more computational power to function, but at the same time, they seek faster transaction speed and lower fees. Compared with other scalability solutions, state channels still maintain their winner position. They are easier for implementation, cheap and fast in terms of their functionality, absolutely disintermediated, and secure ̶a̶s̶ ̶h̶e̶l̶l̶ the same as a blockchain they operate with. Moreover, state channels are feasible for more use cases than their alternatives.