One of the most persistent criticisms of blockchain technology is its performance—specifically, its lack of speed and low transaction throughput compared to traditional centralized systems. When Bitcoin can only handle 7 transactions per second (TPS) and Ethereum averages around 15–30 TPS, critics understandably raise eyebrows when blockchain is proposed as the foundation for the internet of the future.
The verdict from skeptics? “Blockchain is too slow to matter.”
But that judgment overlooks one crucial fact: blockchain’s speed problem is not a permanent flaw—it’s a known challenge that’s being actively solved. In this article, we explore why scalability is solvable, how new innovations are addressing it, and why the slow start doesn’t disqualify blockchain’s future.
Understanding the Speed Problem
Why is blockchain slow to begin with?
Blockchains are intentionally designed to prioritize decentralization and security. Every transaction must be validated by a distributed network of nodes and then added to an immutable ledger. This consensus-driven process takes time—and that’s by design.
Traditional systems like Visa can process 24,000 TPS internationally because they’re centralized. There’s one database, one authority, and one system of record.
Blockchain, however, spreads trust across thousands of nodes and ensures that no single entity can manipulate the data. The trade-off? Speed—for now.
The Trilemma: Decentralization vs. Scalability vs. Security
Ethereum co-founder Vitalik Buterin famously described the Blockchain Trilemma, which asserts that decentralized networks can only optimize for two out of three at a time:
- Decentralization
- Scalability
- Security
Blockchain systems like Bitcoin favor decentralization and security, but sacrifice scalability. The challenge is to break this trilemma—or at least stretch its limits.
As Alessio Vinassa, entrepreneur and a well-known advocate for responsible innovation in the Web3 space, puts it:
“Solving scalability doesn’t mean compromising on decentralization. It means innovating until all three can coexist—and they will.”
The Scalability Stack: How We’re Solving It
Innovators across the blockchain ecosystem are tackling scalability, growth and development in several ways:
1. Layer 2 Solutions
These are technologies built on top of existing blockchains to handle transactions off-chain and then settle them on-chain later.
- Rollups (Optimistic and ZK-Rollups): Bundle thousands of transactions and submit them as one to the base layer.
- State Channels: Enable off-chain interactions between parties that are later committed on-chain.
- Sidechains: Independent chains connected to the main blockchain, capable of faster transaction processing.
Layer 2 is already showing promise in networks like Arbitrum, Optimism, and StarkNet.
2. Sharding
Sharding divides a blockchain network into smaller “shards,” each processing its own subset of transactions and data. This increases parallel processing and speeds things up drastically.
Ethereum is planning to introduce sharding in future upgrades, making it a core part of its long-term roadmap.
3. Alternative Consensus Mechanisms
Proof-of-Work (PoW) is secure but slow and energy-intensive. Newer models like Proof-of-Stake (PoS) and Delegated Proof-of-Stake (DPoS) offer faster, more energy-efficient consensus without sacrificing security.
4. App-Specific Blockchains
Instead of putting all applications on one general-purpose blockchain, some projects are building app-specific chains (e.g., Cosmos zones or Polkadot parachains) to optimize performance per use case.
Real-World Applications Are Already Scaling
Even with these technical limitations, blockchain is already supporting real-world applications:
- Supply chains use blockchain to validate movement of goods without delays.
- Cross-border payments are being processed faster and cheaper than traditional banking systems.
- Gaming ecosystems like those in the GameFi space handle thousands of transactions per hour using sidechains or hybrid models.
- DAOs are executing governance functions with minimal friction.
It’s worth remembering: email wasn’t fast or pretty when it launched, either. Now it’s foundational. The same path of improvement is unfolding for blockchain.
The Patience Factor
Every technological revolution faces early-stage limitations. The internet struggled with dial-up speeds. Mobile phones were clunky and expensive. Cloud computing took years to become standard.
In the words of Alessio Vinassa,
“Technology doesn’t emerge perfect—it earns its place by evolving. Blockchain is no different. We’re still in the early innings.”
Key Takeaways
- Blockchain’s speed issues are a function of prioritizing decentralization and security.
- Scalability is being addressed through Layer 2 solutions, sharding, and improved consensus models.
- Real-world applications are already demonstrating blockchain’s viability despite performance constraints.
- The trilemma is not a wall—it’s a design challenge, and innovators like Alessio Vinassa are helping pave the way forward.
Conclusion
Yes, blockchain is slow—for now. But it’s not a dead end. It’s a work-in-progress, one that’s steadily improving through a combination of technological breakthroughs, engineering creativity, and real-world testing.
Scalability is solvable. And once solved, the possibilities are limitless.
To know more about Alessio Vinassa and how he grow his business philosophies, visit his website at alessiovinassa.io.
You can also find and follow him on the following social platforms:
Instagram – Facebook – X (Twitter)