Blockchain Scalability Solutions: Ethereum And EOS Cases.
I am confident that you are not hearing Blockchain scalability solution, for the first time, even when you may not know what it means. I think it is the most talked-about technology of recent, as the media is saturated on how Blockchain can do this and that. Some even overemphasized on it that they forget the challenges.
However, I am writing this article titled “Blockchain scalability solution, for two sets of people: prospective Blockchain users and those already using Blockchain to solve industrial solutions. You inevitably fell within the sets and had wondered how Blockchain scalability could be met. I have noticed that many sectors would want to deploy Blockchain solutions in businesses but often care less about the possible challenges. I suggest that you ask a few questions as shown below before deploying Blockchain in businesses:
1. What is the speed of a transaction?
2. How decentralized?
3. Can I migrate to Blockchain without losses?
4. What is the cost of migration and transactions?
5. Possible failure, among others.
You will surely make careful choices if you put the above into consideration. Remember that some of the promises of Blockchain are still at concept lever. Hence, you will see several experiments and pilots as seen in IBM and Walmart supply chain, Microsoft, JP Morgan, etc.
Objective Of Reading This Article
I believe that this article will be insightful enough to tell you the following as you read on:
1. Possible blockchain scalability solutions.
2. How Ethereum and EOS are solving scalability challenges
3. Suitable Blockchain, between Ethereum and EOS to use in your projects according to scalability solutions.
Firstly, I must appreciate you for identity and be ready to solve possible scalability in your business while leveraging Blockchain, even when others have not considered it. Sit back while I take you one step at a time:
About Blockchain Scalability.
In different tweets, Vitalik Butterin, the Co-founder of Ethereum and CZ, the CEO of BInance, have expressed their reservations about the scalability of the Blockchain. The formal opined that scalability challenges are hindering organizations from using Blockchain. Whichever we, possible scalability has been widely debated.
EOSIO has reported the fastest and open-source blockchain protocol and introduced in May 2017. It has a 10,000 transaction per second but said to have compromised its reliability and security, find details at; https://en.m.wikipedia.org/wiki/EOS.IO.
On the other hand, Ethereum is an open-source, public Blockchain, widely referred to as the world’s supercomputer. You may be interested in finding more at https://blockgeeks.com/guides/ethereum/.
Ethereum and EOS host smart contract, but the formal operate a renting model and the later ownership model.
I know that you would have observed that Ethereum which is recently adopted more, is only 15 transaction per second, while the 10,000 trs of EOS is still not sure. Visa has a higher throughput than the available solutions. Hence, hands are on deck to disrupt the space. Nonetheless, experts like Butterin has emphasized that scalability, security, and decentralization can not be achieved simultaneously. I think that the above statement holds until a change is seen.
Do not forget in a hast how technology has evolved; you would probably do not know that the barter system will grow to a centralized exchange, doubt the emergence of AI, IoT, Cloud computing, among others. Therefore, I strongly beg to disagree with experts who believe that we will either achieve decentralization or security or scalability. Hence, what will bring the choice blockchain scalability solutions you may want is massive adoption and research. You would remember that JP Morgan and Facebook, said refuted the ingenuity of the Blockchain while the later banned cryptocurrency ads a few months. Now JP Morgan is creating an institutional backed cryptocurrency called JP Morgan Coin while Facebook announced a stable coin called Libra.
Available Blockchain Scalability Challenges
Take a look at the available blockchain availability solutions the questions I mentioned abinitio. The available solutions are as follows:
Consensus mechanism and distributed ledger solutions
I will classify the above blockchain scalability solutions into On-Chain and Off-Chain solutions.
On-Chain Blockchain Scalability Solutions
This refers to improving the core infrastructures; this requires making changes to the codebase of the actual Blockchain to increase the block size, reduce block creation. You may have heard of a hard and soft fork; they fail within on-chain other solutions include sharding, plasma, and Casper.
This refers to the secondary building protocol on the parent Blockchain. EOS inter-Blockchain is a clear example of an off-chain solution. For simplicity, I will mention the available off-chain Blockchain scalability solutions, while you watch out for detailed explanation in my next publication. The solutions include:
1. Lightning Network.
2. Raiden Network
However, Siddhart Sitpure made useful distinction on his medium publication: https://firstname.lastname@example.org/ethereum-scalability-solutions-2fde7e7c67c8, that you may find interest.
Cointelegraph in a tweet, https://twitter.com/Cointelegraph/status/1163401986781224960?s=19, confirmed that Vitalik agreed that scalability is a problem in Blockchain, he said
“Scalability is a big bottleneck because the Ethereum Blockchain is almost full. If you’re a bigger organization, the calculus is that if we join, it will not only be full, but we will be competing with everyone for transaction space. It is already expensive, and it will be even five times more expensive because of us. There is pressure keeping people from joining.”
I see the urgent need to intensify research and further adoption. However, a combination of the above blockchain scalability solutions will help.