Factors that Impact Blockchain Scalability

Blockchain systems (more precisely Distributed Ledger Technologies (DLTs)) represent a different digital ecosystem compared with traditional computer systems. One major difference are the performance and scalability factors which will be discussed and analytically investigated in this paper. In doing so, we provide guidance for defining a research agenda focusing on the investigation of the crucial role of scalability for blockchain systems. System performance -- measured in terms of (1) consensus response time (blockchain network latency or time to convergence/agreement); (2) number of transactions per second or throughput, and (3) computing (and power) resources consumed -- can be understood by considering the design dimensions of a blockchain system, namely: (i) the type of blockchain system needed from a requirements perspective which in turn determines; (ii) the complexity of the consensus protocol used; (iii) the topography of the traffic flow on the network; (iv) the performance and complexity of the domain-specific language that implements smart contracts; and (v) by the anticipated growth in size and complexity of the distributed ledger itself.