Bitcoin, Crypto currency, Blockchain

Ethereum: a solution to the scaling problem in view?

3b0a473492b0be9d27a76d90e40ba6a9 - Ethereum: a solution to the scaling problem in view?

Known to be an efficient scaling solution is one of the Central if not the Central challenge for the future of the Ethereum network. Process without the possibility of more transactions (per second), will be an adaptation and further dissemination of Ethereum in the Mainstream. In addition to the Raiden Network and the Sharding technology, there is now an additional scaling solution, the Liquidity.Network.

With currently over 700,000 transactions per day, Ethereum (red line) and without the ERC-20 tokens, together with Ripple (dark blue line), according to bitinfocharts the most transactions per day.

In theory, the entire Ethereum network can handle currently 15-30 transactions per second. This will not be sufficient in the long term, however, to be able to in the future, rising interest process.

Than during the crypto hype in December 2017 and the transaction number of Ethereum (without ERC-20 tokens) to more than 1.3 million transactions (about 15 per second) increase, also increased the transaction costs relatively high. The confirmation times were unusually long. It showed that there is a need for a scaling solution, in order to create the prerequisites for adaptation in the Mainstream.

Sharding

On the “Beyond the Block”-conference on 25.11.2017 Vitalik Buterin has unveiled its plans for Ethereum 2.0. In the half-hour presentation, he showed the main problems that Ethereum on faces today, and said solution strategies. The Buterin the preferred solution for the scale was back then, as even today, “Sharding”. Hereby Ethereum to be able to thousands of transactions per second scale. The scaling is supposed to get to happen on the Blockchain (“On-Chain”), and without Supernodes.

Both Vitalik Buterin and Ethereums senior developer, Nick Johnson, have emphasized in the past, often the Central role that the Sharding will play in Ethereums solution for the scaling problem. Sharding has the advantage that the scaling On Chain to be done and no Supernodes are needed that are dangerous in respect of a centralization of the network.

A week ago, Buterin has been given a note that Ethereum is on the verge of starting to be Sharding-Testnet.

On Twitter Buterin announced that Leeroy – a decentralized Twitter – will be a suitable candidate for the Test. While Vitalik has deleted the Post on Twitter again, Leeroy, the message can be found.

On the “Beyond the Block”-conference in November last year, Buterin explained in a realistic time plan of three to five years. The deleted Tweet of Buterin now, however, hope that at least a Sharding-Testnet could start soon.

Raiden Network

The Raiden-network provides a Protocol solution to the scaling problems of the Ethereum network. This is in addition to Ethereum, and not replace it. The scaling should be done Off-Chain, and as well as Sharding and scaling for all of the ERC-20 tokens solve.

The objective of the escape Protocol is to enable 100,000 transactions per second (VISA creates in comparison with only 45,000 transactions per second) and, therefore, to enable processing in near real time with low fees.

The Raiden Network (RDN-Token) ICO ended on 01. November 2018. What time is the Raiden network but is deployed and ready for the Mainnet, is still to be determined. A basic understanding of Raiden gives the Video below:

Liquidity.Network

A new Ethereum-scaling solution is the Liquidity.Network. Similar to Raiden and also the Bitcoin Version Lightning the Liquidity.Network allow users to make transactions Off-Chain, without having to pay the high cost for an On-Chain transaction. This is possible via so-called payment channels (“Payment Channels”), direct Peer-to-Peer payment channels between two people. The individual transactions between the two persons will not be written immediately in the Blockchain, meaning that they require no Mining. Therefore, transactions with lower fees, and thus micro-payments can be economical.

As Raiden, the Liquidity is.Network, a Token – LQD-Token – in the framework of ICOs (ICO is already running), to Finance the development and to operate the Protocol.

A first, unfinished Alpha Version of the Liquidity.Network is already in Ethereums Ropsten to the test network. A special feature is that there is already a Wallet (with a graphical user interface), with the Test transactions on the Liquidity.Network sent and received.

As well as Raiden, the Liquidity is.Network support in the future the ERC-20 Standard and its Token. Already in three months, the Mainnet should start. A basic Overview of the Liquidity.Network gives you the following Video:

Conclusion

True to the Motto “competition stimulates business”, therefore, remains to hope, that as of 2018, may be presented in an efficient scaling solution for the Ethereum network. Which will make the solutions to the “race” and whether multiple solutions will exist in parallel, the future will show.

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