Why Crypto Scalability Is Important: A Quick Review
As cryptocurrency becomes ever more popular, the ability to meet demand may make or break a coin. And yet, few investors are concerned about a coin’s crypto scalability until a crisis emerges. That’s what happened briefly earlier this year when an ongoing civil war about Bitcoin’s block size (limited at the time to 1 megabyte) came to a head. Unable to perform more than 2-3 transactions per second, bitcoin’s network was struggling to process a backlog of pending transactions.
Fortunately, this pressure was somewhat relieved by implementation of Segregated Witness, a soft fork change in the transaction format. Segwit, as its known, was able to free up space for additional transactions by splitting off a large amount of transaction data from the transaction block. As a consequence, the Bitcoin network can now process twice as many transactions as previously.
Similarly, Coinbase and BTC-E halted Ethereum trading this summer because of the coin’s unstable network. The coin produced an extremely high network load, making withdrawals temporarily unavailable. At present, its blockchain size exceeds 200 gigabytes, making it even larger than Bitcoin.
Unfortunately, without the architecture for unlimited scalability, these tech fixes are simply “kicking the can down the road”. Given Bitcoin’s continued growth, Bitcoin scalability will certainly become an issue again. And what happens then? Crypto scalability issues not only risk continued crypto growth, they also promote hard forks (one need only look at the development of Bitcoin Cash in a bid to increase transaction speed 8 times).
What Unlimited Scalability Looks Like
When a cryptocurrency cannot meet demand (as Bitcoin above), we say that it has scalability problems. In other words, it cannot scale up past a certain point. The result is frustrated investors and lack of faith in crypto’s future.
In contrast, Visa and Mastercard are able to handle roughly 56,000 transactions per second, far more then they handle currently. As a result, financial investors do not have discussions related to scalability concerns. Any new technology that seeks to compete against Visa or Mastercard will need to work just as well as they do – or simply be perceived as archaic.
Fortunately, new technology that eliminates present concerns about scalability is being developed by the XTRABYTES team. Their innovative blockchain platform is seeking to process upwards of 10,000 transactions per second. At present, they’ve achieved transaction speeds over 40 times faster than that of Bitcoin. How does XTRABYTES achieve this?
The VITALS Network
XTRABYTES employs a system of physical and virtual nodes that connect through a private virtual network (named VITALS). These physical nodes (named STATIC nodes) are required to sign off on each transaction block. This is why we say XTRABYTES uses “Proof-of-Signature”. WIth this requirement, these nodes must be FAST!
VITALS is the proprietary network that connects the STATIC nodes so they communicate with each other. Much like a VPN, VITALS also extends over public networks. Its been configured to provide “interference-free direct paths between nodes to ensure security and speed when processing transactions.”
Another aspect of XTRABYTES that facilitates transaction time is PULSE, the system by which the aforementioned nodes communicate with each other. When a new transaction occurs on XTRABYTES, PULSE notifies them that a new block must be validated. These blocks thus get verified in near real-time, enabling STATIC nodes to quickly unsync from the network when an attack or problem block occurs.
XTRABYTES’ innovative blockchain platform shows the way forward with future crypto scalability problems. While Bitcoin’s scalability problem has been temporarily relieved by SegWit, its not a foregone conclusion that the coin can survive a second such act (how much data can be stripped from a block?).
Given that XTRABYTES pairs its robust scalability with an agnostic coding platform and extreme security, its the blockchain platform to watch in the future.
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We don’t just publish articles, XTRABYTES is a whole new blockchain platform that allows DApps to be programmed in any language, utilizing a new consensus algorithm called Proof of Signature. In doing so, XTRABYTES presents a next – generation blockchain solution capable of providing a diverse set of capabilities to the general public.