In this section, we will see that what are the various advanced protocols that have been suggested or implemented for improving the Bitcoin protocol.
Transaction throughput is one of the critical issues that need to be addressed.
A Complete Guide to Understanding This Blockchain Concept
Inherently, the Bitcoin network can only process from approximately 3 to 7 transactions per second which is a tiny number as compared to other financial networks, such as Visa which can process approximately, on average, 24,000 transactions per second.
PayPal can process approximately 200 transactions per second whereas Ethereum can process up to on average 20.
As Bitcoin Network grew exponentially over the last few years, these issues started to grow even further.
The difference of processing speed is also shown below in a graph which shows the scale of difference between Bitcoin and other networks’ transaction speeds.
Bitcoin transaction speed as compared to other networks (on logarithmic scale) Also, security issues such as transaction malleability are of real concern which can result in denial of service.
Various proposals have been made to improve the Bitcoin proposal to address various weaknesses.
Why This Matters for Blockchain Technology
A selection of these proposals is presented in the following subsections.
Key Points to Remember
- Advanced protocols In this section, we will see that what are the various advanced protocols that have been suggested or implemented for improving the Bitcoin protocol.
- Transaction throughput is one of the critical issues that need to be addressed.
- Inherently, the Bitcoin network can only process from approximately 3 to 7 transactions per second which is a tiny number as compared to other financial networks, such as Visa which can process approximately, on average, 24,000 transactions per second.
- PayPal can process approximately 200 transactions per second whereas Ethereum can process up to on average 20.
Conclusion
Advanced protocols represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.