The bitcoin scalability problem refers to the discussion concerning the limits on the amount of transactions the bitcoin network can process. The on chain transaction processing capacity of the bitcoin network is limited by the average block creation time of 10 minutes and the block bip32 bitcoin miner limit. These jointly constrain the network’s throughput.
The transaction processing capacity maximum is estimated between 3. 3 and 7 transactions per second. There are various proposed and activated solutions to address this issue. The block size limit has created a bottleneck in bitcoin, resulting in increasing transaction fees and delayed processing of transactions that cannot be fit into a block.