Bitcoin has become too successful for its own good and the 1MB block size limit has caused transaction fees to skyrocket over the past few months. Many believe a solution is desperately needed in order for Bitcoin to continue to grow as a payments system rather than just a store of value.
Currently, the network can only support up to seven on-blockchain transactions per second (three in practice) although many more transactions happen off chain. In comparison, PayPal processes about 100 transactions per second, and Visa, about 4,000 per second.
As the network reaches its capacity limits, a large chunk of the ecosystem agrees that one of the many proposed solutions needs to be implemented out of fear that other payment systems which have addressed scaling issues will soon be more attractive to consumers and developers.
The Bitcoin community has been divided for over the past couple of years on how Bitcoin should be upgraded in order for the network to scale. Over the past year, Bitcoin Core’s Segregated Witness (SegWit) and Bitcoin Unlimited were seen as the main contenders for an end to this stalemate.
We surveyed our readers to find out which scaling solution they most preferred..