> For the complete documentation index, see [llms.txt](https://upyy.gitbook.io/upyy/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://upyy.gitbook.io/upyy/optimization/scalability.md).

# Scalability

A significant volume of cashless payment transactions, such as online and mobile payments, occurs daily.

Transactions on the blockchain are not instant and require network verification, which takes a certain amount of time. When numerous transactions happen simultaneously, this verification process may result in prolonged payment completion times, accompanied by potential increases in transaction fees. Consequently, blockchain-based payments may be perceived as slower and less convenient compared to traditional payment methods.

However, for blockchain-based payment services to gain widespread acceptance, it is imperative to achieve payment processing capabilities equal to or surpassing those of existing payment methods.

Blockchain technology has long been anticipated to address various issues in existing payment methods, presenting itself as an effective solution for next-generation payment systems. Yet, as of the present writing, the impact on existing payment methods remains limited, and widely adopted practical services are yet to take root.

We posit that one of the reasons for this lies in the inefficient design of many blockchains used in payment-related applications, rendering them inferior in processing power compared to existing payment methods like credit card and mobile payment systems.

A typical mobile payment system processes hundreds to a few thousand transactions per second (TPS). The systems of the world's largest credit card companies can handle an average of a few thousand (5,000-7,000) to a maximum of 70,000 TPS.

In contrast, the processing capacity of general blockchains ranges from several to several dozen TPS. With the relatively limited TPS of blockchains like Bitcoin and Ethereum, one can expect higher fees and longer payment completion times due to network congestion as the user and application base expands.

While some more recent blockchains leverage high processing capacity and low fees, concentrated transactions over a short time can lead to a significant drop in processing capacity and network instability, making them unsuitable for payment applications with a large number of transactions.


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