Blockchain technology’s potential has been much publicised. However, there remain significant obstacles to be overcome before it achieves widespread adoption.
The most pressing question to be answered is whether or not it can scale-in terms of both total transaction volume and the number of independent participants involved in processing them.
A wide variety of solutions have been proposed. These fall into two categories — layer I ‘on-chain' solutions, such as Ethereum’s effort to implement sharding, or layer II solutions built on top of the blockchain ‘off-chain', such as the Lightning Network.
How feasible are these solutions? Are these just short-term fixes? What are the fundamental tradeoffs? What can we expect in the future?