Blockchain technology promises decentralized systems that can operate without relying on a central authority. But as blockchain networks attract more users, applications, and transactions, they face a fundamental challenge: how can they handle significantly more activity without becoming slow, expensive, or increasingly centralized?

Blockchain is often described as a decentralized technology, but not every blockchain is decentralized to the same degree. Some networks are highly distributed across thousands of participants worldwide, while others rely on a relatively small number of organizations to validate transactions and make decisions.