How IOTA solves Blockchains scalability problem

Too Long; Didn't Read

<a href="https://hackernoon.com/tagged/blockchain" target="_blank">Blockchain</a> as a decentralized and cryptographically secured database is one of the new technologies, that will definitely have a huge impact on the future of the <a href="https://hackernoon.com/tagged/digital" target="_blank">digital</a> world. But with an increasing impact comes an increasing number of users — and there a big problem occurs. Most of the currently known blockchain networks are not made for many users — and I mean a lot of users. Let’s just take a look at the most famous blockchain system Bitcoin. The size of a block, which determines the amount of data being able to be stored, is limited to 1MB. As I described in one of my previous articles, <a href="https://hackernoon.com/how-cryptocurrencies-actually-work-d802106ed341" target="_blank">How cryptocurrencies actually work</a>, the data stored in cryptocurrency blockchains are transaction data. A block has to be generated and then validated by the network, and this takes time. Thus, there is only a limited amount of transactions, that can be done per a certain amount of time. But since this whole technology gets more and more participants, the time to handle such transactions, increases. This is called the problem of scalability. A solution had to be found, and IOTA did find one.