With these solutions, you can solve one of the biggest issues faced by Blockchain i.e. scalability.
The blockchain technology is definitely one of the most inventive technologies of this decade and the surprising part is that we still haven't explored the full potential of this emerging technology. The term blockchain rose to fame a couple of years back when Satoshi Nakamoto (Pseudonym) first released a posted his research on it over the internet.
Many tech experts have even started referring blockchain as 'Digital Gold' and the recent statistics support their statement. For example, the total value of this technology is considered to cross the threshold $100 billion in U.S. dollars. In addition to this, the blockchain technology itself consists of various other subsets like cryptocurrencies. One of the most famous cryptocurrencies is Bitcoin, which recently completed a 10-year milestone.
But as the usage of blockchain technology is expanding, some issues regarding its performance are surfacing as well. And in this article, we will be discussing about one of the major issues i.e. scalability.
Here are some of the issues related to scalability that affect the performance of blockchain applications:
One of the most common issues that directly impact the blockchain performance is human error. Let's consider the example of blockchain as a database where the information stored needs to be accurate and high quality. But as the data storage process relies on human, the chance of manual errors increases.
Network speed and transaction fees are also major factors that can be identified as blockchain issues. Back in the year 2016, blockchain technology could only process about six to seven transactions per second and each of those transactions had a fee of approximately $0.20 and had the capacity of storing 80 bytes of data only. On the other hand, today bitcoin cryptocurrency has the lowest transaction cost and is very close to being free.
As blockchain technology is an emerging technology that has not still not main made it to the mainstream industry verticals completely. This is one of the main reasons why many areas related to the blockchain technology are still unexplored to this day. But from the past year or two, extra efforts are being made in this respect and more professionals are going aiming to become blockchain developers.
The blockchains act like distributed systems i.e. they are not very resistant as they are anti-fragile in nature. This property of blockchain means they that basically grow stronger with every attack on the system. For this purpose, blockchain requires to have a huge network of end-users i.e. with a distributed network the robustness also decreases.
In the world of technology, nothing can be 100 percent perfect and the same is the case with blockchain technology. A significant flaw in blockchain bitcoin is that if there are more than half of the computers acting as nodes in the system are supporting a false statement then the false statement will become dominant and will be considered a true statement in the system.
Here are some of the most effective solutions that can help in dealing with the blockchain scalability problem:
A great example of a next-generation high-throughput public blockchain platform is Zilliqa which is capable of processing hundreds and thousands of transactions in a second. Also, this public blockchain platform has the feature of inbuilt sharding that increases the overall potential of Zilliqa by matching the throughput benchmarks set my other payment procedures like Mastercard, Visa etc.
Another plus point of this next-gen platform is that its transactions' throughput also increases with respect to the network size of Zilliqa. Below are some of the key features that this platform offers:
DAG (Directed Acyclic Graph) also known as Tangle Technology, is a blockchain solution that is built on a new approach which is primarily based on decentralized technology. Here, the decentralized technology is used to solve the problem of scalability in the blockchain technology.
This new technology can also be said the solution for the machine-to-machine economy where a large number of connected devices can perform in sync to create one micro-transaction. In a DAG, a tangle basically consists of various edges spread out in every direction. This network then works as a one-way street for data to pass from one designated node to another.
Another plus point of DAG is that it allows multiple sidechains of blockchain to interconnect and co-exist without never forming an additional edge with a parent node.
Aerum is a blockchain platform were the end-users can experience some of the fastest transactions at a very low cost and the best part about this platform is that it operates with improved scalability. On average, Aerum targets towards delivering 500 tps on a yearly basis that may lead to more than 15 billion transactions in total.
This blockchain platform is great for launching dApps, gaming applications, social media networks etc. Some of the other features offered by Aerum are as follows:
The next solution in this list is Stellar which is one of the widely used blockchain networks for measuring performance with respect to market capitalization. If we look at the recent reports released by CoinMarketCap, this platform is also ranked on the fifth position out of more than hundred cryptocurrencies.
Another thing that makes this blockchain solution stand out is the strong community of builders that support Stellar who get incentivized for working on this technology. Jed McCaleb, Founder of Stellar also stated that 'it’s possible to reach approximately 4000 transactions per second. However, it really depends on the hardware that's running Stellar, so it is hard to give solid numbers'.
There are various Ethereum scalability solutions that can be used to solve the blockchain performance issue:
So these were some of the emerging solutions that we are likely to see more in the coming years to deal with the scalability issue related to blockchain performance. With blockchain technology being integrated into various mainstream sectors, we will surely be seeing more blockchain advancements in the future.
Also, if you are someone who is interested in reading more articles on blockchain technology then make sure to check out some of the previous articles of MobileAppDaily. You can also follow us by clicking on the ‘Subscribe’ button to never miss another technology update.
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