The ability of a blockchain network, trading platform, or financial system to handle an increasing volume of transactions or users without a decline in performance. Scalability is a key challenge for many blockchain networks, where higher transaction throughput often requires trade-offs with decentralization or security.
Example
“Ethereum's transition to proof-of-stake and the development of Layer 2 rollups like Arbitrum were designed to improve the network's scalability from roughly 15 transactions per second to thousands.”