This is the second article in the series of Web 3 Scalability and Sharding and in the previous article, we introduced the concept of web 3 scalability and why it matters. In this article, we will dive into the challenges of web 3 congestion and how it affects web 3 platforms, protocols, applications, and users.

What is web 3 congestion?

Web 3 congestion is the situation where the demand for transactions or users exceeds the capacity of the network. Web 3 congestion is similar to network congestion in general, which occurs when the traffic flowing through a network exceeds its maximum capacity. Network congestion can cause several negative consequences, such as high latency, packet loss, connection timeouts, and poor user experience.

However, web 3 congestion is more specific and complex, as it involves the interaction of various web 3 platforms and protocols, each with its own design trade-offs and limitations. Web 3 platforms and protocols are the underlying infrastructure that enables web 3 applications and services to run on peer-to-peer networks, without intermediaries or central authorities. Web 3 platforms and protocols include blockchain networks, such as Ethereum, Bitcoin, and Polkadot, as well as other decentralized technologies, such as IPFS, libp2p, and OrbitDB.

Web 3 platforms and protocols have to balance between three main goals: decentralization, security, and scalability. Decentralization means that the network is composed of many independent nodes that validate and record transactions, without relying on a single entity or point of failure. Security means that the network is resistant to attacks and can ensure the validity and immutability of transactions. Scalability means that the network can process a large number of transactions per second, with low latency and fees.

However, achieving all three goals at the same time is very challenging, if not impossible, due to the inherent trade-offs and limitations of web 3 technology. For instance, increasing the decentralization of the network may reduce its scalability, as more nodes have to reach consensus and synchronize their states, which consumes more time and resources. Increasing the security of the network may also reduce its scalability, as more transactions have to be verified and stored, which increases the size and complexity of the blockchain. Increasing the scalability of the network may compromise its decentralization or security, as fewer nodes may participate in the validation process, or as the network may become more vulnerable to attacks or forks.

These trade-offs and limitations result in web 3 congestion, which is the situation where the demand for transactions or users exceeds the capacity of the network. Web 3 congestion leads to several negative consequences, such as slow transactions, high fees, and poor user experience.

What Causes Web 3 Congestion?

Web 3 congestion can be caused by various factors, such as excessive demand, limited supply, poor design, or external events. Some of the common causes of web 3 congestion are:

• Excessive demand: Web 3 applications and services are becoming more popular and widely adopted, as they offer more benefits and opportunities for users, such as more control, privacy, and ownership of their data and digital assets, as well as more possibilities and innovation for social impact. However, this also means that more users and transactions are competing for the limited resources and bandwidth of the network, creating a high demand that exceeds the supply. For example, in December 2023, the launch of the Metaverse, a virtual reality platform powered by Ethereum, attracted millions of users and transactions, creating a huge spike in demand that overwhelmed the network.

• Limited supply: Web 3 platforms and protocols have a finite capacity and bandwidth, which limits the number of transactions or users they can handle at a given time. This capacity and bandwidth depend on various factors, such as the block size, the block time, the consensus algorithm, the network topology, and the hardware specifications of the nodes. For example, the Bitcoin network can only process about 7 transactions per second, due to its 1 MB block size and 10 minutes block time. The Ethereum network can process about 15 transactions per second, due to its 12 seconds block time and variable gas limit. These numbers are far below the demand of millions of users and transactions that web 3 applications and services generate.

• Poor design: Web 3 platforms and protocols are still in their early stages of development and innovation, and may suffer from poor design choices or bugs that affect their performance and efficiency. For example, some web 3 platforms and protocols may have a suboptimal consensus algorithm, a flawed incentive mechanism, a complex governance model, or a low interoperability with other platforms and protocols. These design issues may create bottlenecks, inefficiencies, or vulnerabilities that reduce the capacity and bandwidth of the network, or increase the demand for transactions or users.

• External events: Web 3 platforms and protocols may also be affected by external events that are beyond their control, such as network attacks, natural disasters, political unrest, or regulatory changes. These events may disrupt the normal functioning of the network, or create a sudden surge or drop in demand for transactions or users.

What are the Consequences of Web 3 Congestion?

Web 3 congestion can have serious and negative consequences for web 3 platforms, protocols, applications, and users, such as:

• Slow transactions: Web 3 congestion can increase the time it takes for a transaction to be confirmed and executed by the network, as the network has to process more transactions than its capacity. This can create a long queue of pending transactions, which may take hours or days to clear. This can affect the user experience and satisfaction, as well as the functionality and reliability of web 3 applications and services.

• High fees: Web 3 congestion can also increase the cost of transactions, as the network has to prioritize the transactions that pay higher fees. This can create a bidding war among users and transactions, who have to compete for the limited space and bandwidth of the network. This can affect the affordability and accessibility of web 3 applications and services, as well as the profitability and sustainability of web 3 platforms and protocols

• Poor security: Web 3 congestion can also compromise the security of the network, as the network may become more vulnerable to attacks or forks. This can affect the trust and confidence of users and transactions, as well as the integrity and immutability of web 3 applications and services.

Conclusion

Web 3 congestion is a pressing and urgent problem that needs to be solved, in order to unleash the full potential and value of web 3. Web 3 congestion is the situation where the demand for transactions or users exceeds the capacity of the network, which can cause several negative consequences, such as slow transactions, high fees, and poor security. Web 3 congestion can be caused by various factors, such as excessive demand, limited supply, poor design, or external events. Web 3 congestion can have serious and negative consequences for web 3 platforms, protocols, applications, and users, such as slow transactions, high fees, and poor security.

In this article, we have explored the challenges of web 3 congestion and how it affects web 3 platforms, protocols, applications, and users. In the next article, we will take a look at the solutions for web 3 scalability and how different approaches and technologies enable web 3 scalability, such as layer 2 solutions, sidechains, and rollups. Stay tuned for the next article in the series, where we will critically examine the solutions for web 3 scalability and how they work. Until then, stay tuned! 😊