At the OmiseGO AMA session, Vitaly Buterin announced that he had found a completely new solution to scalability problems. The creator of Ethereum has announced an improvement that will take it from processing 15 transactions per second now to processing 1 million transactions per second in the future.
This will provide unlimited opportunities for large decentralized applications to use the Ethereum network. Scalability is one of the stumbling blocks of blockchain projects. In order for large payment processors and financial institutions to be interested in cryptocurrencies, they need to process hundreds of thousands of transactions per second.
The technology used today in the Ethereum network requires each node in the network to process a transaction passing through the network. This verification provides a high level of security, but at the same time imposes a very serious limitation on the throughput of the Ethereum network: it cannot be higher than the throughput of each of the nodes that it consists of.
Sharding increases the scalability of Ethereum by 100 times. This scaling solution uses microchains to process specific types of transactions on the Ethereum blockchain. Sharing distributes transactions across separate branches of the main ledger. As a result, the transaction is not verified by the entire chain, but by several nodes supporting a specific branch.
Plasma, a solution developed by Buterin and Joseph Poon, works in the same way as Bitcoin's Lightning Network. Plasma allows Ethereum to process micropayments by creating child blockchains on the main blockchains to process information faster. Each child chain has the same functionality as the main Ethereum protocol, allowing entire decentralized applications to run smoothly on their own local blockchain.
According to Vitalik Buterin, such solutions are complementary and must work in tandem to achieve optimal results.
At the moment, testing of the announced changes for decentralized applications continues. The first part of network scaling using sharding was completed at the end of January and testing of innovative approaches to optimizing the blockchain continues.
You May Also Like
Google integrates Ethereum blockchain
Google's data analytics service, called BigQuery, will now display information about the Ethereum blockchain.
Buterin proposes limiting the number of Ether coins to 120 million
Vitalik Buterin has written a new proposal that could solve the most basic question of the ethereum network: whether there will be a maximum number of Ether coins that can be created. In a new proposal to improve the Ethereum network, the creator of the cryptocurrency shared his thoughts with developers and users of the software on setting the maximum number of coins at 120,204,432. This is exactly twice as many as were sold during the ICO process in 2014.
