Parallelization in Blockchains: What it is and How it Works

Parallelization or parallel transaction execution is an efficient approach to blockchain transaction processing. It involves processing multiple transactions simultaneously instead of executing them one after the other which is how early blockchain networks process transactions.?

Legacy blockchains like Ethereum face inherent scalability challenges, resulting in slow processing speed and high transaction costs, especially during periods of high demand.?

A key factor behind this limitation is the sequential execution of transactions. In early blockchains transactions are queued and processed serially while validators prioritize transactions with higher gas fees.?

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Though this approach worked effectively in the early days of blockchain, the rapid growth in adoption and the increase in on-chain activities have rendered it inefficient.?

To address these challenges, modern blockchains are adopting various models of parallelization. These innovations are unlocking faster, more scalable, and cost-effective networks, paving the way for blockchain’s continued evolution.

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