Why are we scaling Bitcoin horizontally

Why Scaling networks horizontally

For users to adopt a technology like Bitcoin, several key factors come into play, such as scalability and performance, which are critical—users want fast transactions and low fees without delays or bottlenecks. Regarding ease of use or, in developers' terms, "barrier-to-entry," accessibility matters too, as people are more likely to engage with technology that is easy to use and doesn't require specialized resources. Following all of the above, the core principles pillars of Web3, security, and decentralization are non-negotiable, as we have often seen that trust in the system underpins its value. Horizontal scaling addresses scalability challenges, leading to faster transaction processing and reduced fees. Implemented through the distribution of load across multiple nodes, horizontal scaling also greatly impacts the network's resilience. The distribution increases throughput and reinforces security by reducing single points of failure.

Networks scaled through this principle present a crucial infrastructure for adoption achieved by improving user experience, which is crucial for both acquisition and retention of the users (as it mitigates common pain points associated with network congestion and high costs).

Key advantages of scaling horizontally

Scaling Bitcoin horizontally through the concept of network extensions, further called "subnets," offers significant advantages for all three major user groups: retail, organization, and developers. The solution's architecture allows users to seamlessly interact with the network as an infrastructure and spawn the network extensions customized to target a specific use case. This challenge can be overlooked from two different perspectives, where we can highlight how horizontal scaling affects the ecosystem's horizontal and vertical segments. The concept of subnets unlocks new possibilities for onboarding new business models on the bitcoin, especially the ones that are already proven, such as DeFI cases (lending/borrowing, payment processing, OTC exchanging), through the logic that is similar to what we already know as a "smart contracts" in different ecosystems. Businesses can fine-tune subnet parameters—such as block times and consensus rules—to optimize for their specific use cases, whether it’s ultra-low latency for financial services or high throughput for retail. To summarize - the ability to deploy subnets with custom consensus mechanisms and cryptoeconomic enables Bitcoin to support diverse applications, from high-frequency trading to global payment networks.

Mechanisms like checkpointing and parent-subnet synchronization also provide recoverability and audibility, setting the foundation for achieving trust and resilience in enterprise/institutional-grade applications. Subnet isolation prevents localized failures from impacting the broader network, maintaining reliability across all operations.

Horizontal scaling avoids the centralization risks associated with vertical scaling (e.g., requiring expensive hardware), allowing businesses to scale sustainably without compromising decentralization.