What is Bitcoin's approximate transaction throughput?

Bitcoin processes approximately 7 transactions per second on the base layer.

What is the Lightning Network?

The Lightning Network is a layer 2 solution that enables fast, cheap transactions through payment channels.

What is the scalability trilemma?

The scalability trilemma refers to the challenge of balancing scalability, security, and decentralization.

How many transactions per second can Lightning Network handle?

The Lightning Network can theoretically handle millions of transactions per second.

A sidechain is a separate blockchain that is pegged to Bitcoin, allowing different rules and features.

Scalability and Layer 2

9 min readarticleIncludes quiz · 5 questions

Visa processes 65,000 transactions per second. Bitcoin processes 7. At first glance, Bitcoin loses. But Visa is a payment layer built on top of a settlement layer (the banking system). Bitcoin is a settlement layer — and Lightning Network is its Visa.

Bitcoin processes about 7 transactions per second. How can it scale to serve billions? Through clever engineering and layer 2 solutions.

The Scalability Trilemma:

Blockchains must balance:

•Scalability: Transaction throughput
•Security: Resistance to attacks
•Decentralization: Number of validators

Improving one often compromises the others.

Layer 2 Solutions:

Lightning Network:

•Payment channels between users
•Instant transactions
•Minimal fees
•Millions of TPS possible
•Final settlement on Bitcoin

Sidechains:

•Separate blockchains pegged to Bitcoin
•Different rules and features
•Liquid Network example

Key Takeaway

Scaling Bitcoin is not about making the base layer faster — it is about building efficient layers on top of an uncompromising foundation. This is the same approach the internet took: TCP/IP is slow and simple, and everything else is built on top.

Test Your Knowledge

5 questions · Passing score: 75%

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