The Scalability Struggle of Blockchain Technology and How BlockDAG Solves It

Bitcoin Cash tried to address this by enlarging block sizes, while Hyperliquid focused on enhancing speed and its DeFi features.

Bitcoin Cash attempts to address the main struggle of blockchain technology: scalability. It does so by enlarging the block size to enable more transactions per block, contrasting with Hyperliquid which focuses on speed and its DeFi features to quickly process trades. However, both approaches still face old limitations that BlockDAG manages to merge by combining DAG with Proof-of-Work to create a robust base that moves past the sequential bottlenecks of traditional chains. Especially with the rise in crypto usage, sacrificing decentralization for throughput is no longer viable.

Bitcoin Cash: A Journey Through Changes and Achievements

Born on August 1, 2017, from a direct split with Bitcoin, Bitcoin Cash was created by developers and miners to quicken transactions and cut costs by increasing the block size to 8 MB. This change enabled more transactions per block, tackling Bitcoin’s original scalability issues. At launch, Bitcoin Cash traded at about $240 and soared to a peak of $4,355.62 on December 20, 2017. By August 23, 2018, it fell to around $519.12, showcasing the high volatility of the crypto market. As of March 24, 2025, its price stands at $332.19, much lower than its highest value.

With a market cap of around $6.6 billion and a circulating supply of 19,847,375 coins from a total of 21 million, Bitcoin Cash remains a significant crypto entity but struggles to keep its value and market standing.

Hyperliquid’s Swift Climb in the DeFi Arena

Hyperliquid introduced its token, HYPE, on November 29, 2024, by airdropping 31% of its 1 billion total supply to early users, without initial fundraising. Since its introduction, the platform quickly processed over 10,000 trades daily and grew to over 90,000 active users. Daily trade volumes hit $470 million, with total volumes nearing $1 trillion.

Despite its initial success, HYPE’s value has been volatile, peaking at $35 in December 2024 and dropping to $14 by March 2025. This drop in market cap from over $9 billion to $4.7 billion is tied to the broader crypto market’s downturn and concerns over token dilution from ongoing unlocks.

To enhance risk management, Hyperliquid raised margin requirements to 20% after a $4 million loss in its liquidity pool due to major liquidations. Still, the platform’s user base is nearing 400,000, showcasing its endurance and increasing importance in the DeFi space.

How BlockDAG Is Rethinking Blockchain Consensus

Traditional blockchain designs, groundbreaking at their start, are held back by their sequential process, funneling all transactions into a single line. This leads to slower transaction speeds, increased fees, and a bottleneck that curtails scalability. The sequential verification found in Proof-of-Work systems, like those of Bitcoin and the original Ethereum, causes inherent inefficiencies.

However, BlockDAG transforms this framework by combining a Directed Acyclic Graph (DAG) with Proof-of-Work, enabling the simultaneous confirmation of multiple blocks. Transactions are processed concurrently along various paths, eliminating the queue entirely. This innovation not only boosts transaction capacity (achieving 2,000 transactions per second on the mainnet with a goal of 15,000 TPS) but also maintains decentralization and the proven security of Proof-of-Work.

“Our hybrid consensus model merges the security and proven stability of Proof-of-Work with the agility and rapidity of a Directed Acyclic Graph,” explains CTO Jeremy Harkness.

This method enhances the foundational principles of decentralization, designing an architecture ideal for expansive, trustless networks that need to scale without becoming centralized.

Moreover, the success of this approach is evident in significant numbers: $208 million raised in the presale without venture capital, over 19 billion coins distributed, and a ROI of 2,380% up to the latest batch priced at $0.0248 per coin. BlockDAG isn’t merely updating old systems—it’s pioneering a new benchmark in blockchain technology.

The Evolutionary Leap of BlockDAG in Blockchain Tech

While Bitcoin Cash aimed for scale by enlarging blocks and Hyperliquid focused on speed with financial tools, both remain tied to traditional, linear structures. In stark contrast, BlockDAG shatters this old paradigm by combining Proof-of-Work with a Directed Acyclic Graph, heralding not just a technological advancement but a radical structural change. This dual approach enables efficient parallel processing, reduced fees, and robust decentralization.

As the demand on blockchains to accommodate real-world demands and complexity increases, the