Horizontal Transaction Scaling

A hot wallet is a cryptocurrency wallet connected to the internet, allowing for quick access and transactions, ideal for frequent trading.

Horizontal transaction scaling refers to the ability of a blockchain network to handle more transactions by adding more nodes or validators rather than solely relying on increasing the capacity of existing nodes. This approach distributes the transaction load across multiple participants, allowing the system to process a greater number of transactions simultaneously.By employing horizontal scaling, networks can improve their throughput without compromising decentralization. Each new node can take on a portion of the transaction processing, which helps prevent bottlenecks and reduces delays. This is in contrast to vertical scaling, where performance is boosted by upgrading the hardware of existing nodes, which may lead to centralization and higher costs.Horizontal scaling is essential for maintaining efficiency and speed as the user base grows. It encourages a diverse set of participants to join and support the network, enhancing its resilience and security. Overall, this method provides a more sustainable path for growth in transaction volume while promoting a decentralized architecture.

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