Horizontal scalability refers to the ability of a system to increase its capacity by adding more nodes or machines rather than upgrading existing hardware. In cryptocurrency networks, this means expanding the blockchain’s performance by incorporating additional participants or servers to process transactions.When a blockchain network experiences higher demand or increased transaction volume, horizontal scalability can help manage this load effectively. By distributing the workload across multiple nodes, the network can maintain speed and efficiency without becoming congested. This approach contrasts with vertical scalability, which focuses on enhancing the power of a single node. While vertical scaling can be limited by hardware constraints, horizontal scalability allows for virtually limitless expansion, as new nodes can continuously be added.Effective horizontal scalability is crucial for large-scale blockchain applications that require quick transaction processing and high throughput, ensuring the network remains functional and responsive as it grows.