Why Crypto Scalability Is Important
Scalability refers to a cryptocurrency’s ability to meet public demand. When high demand leads to network congestion and long wait times, the public’s confidence in the cryptocurrency wanes. That’s what happened in 2017 when an intense debate arose about Bitcoin’s block size (limited at the time to 1 megabyte). Unable to perform more than 2-3 transactions per second, the Bitcoin network struggled to process a backlog of pending transactions. Many Bitcoin investors came to realize that the coin’s mass adoption was not a given.
Eventually, the powers that be implemented Segregated Witness, a soft fork that changed the transaction format. Segwit freed up space for additional transactions by eliminating select transaction block data. The change enabled the Bitcoin network to process nearly twice as many transactions as it had previously. However, it’s uncertain as to how long Segwit will this resolve this issue.
Ethereum began experiencing scalability issues that same year as well. Indeed, Coinbase and BTC-E halted Ethereum trading that summer as its network appeared unstable. Ethereum scalability became an even more serious issue when users encountered heavy network congestion as a result of the
Today, Ethereum developers are reviewing various solutions to this dilemma, particularly sharding and off-chain solutions. However, no immediate solution appears in sight. One scaling solution often discussed is The Raiden Network, although such technology has yet to be implemented (and has been delayed since March 2017).
Achieving unlimited scalability is critical if cryptocurrencies are to achieve mass adoption. Anything less than a permanent solution is merely “kicking the can down the road.” And given Bitcoin’s dominance, scalability will likely become a major issue again
What Unlimited Scalability Looks Like
To reiterate, when a cryptocurrency cannot meet demand it’s said to have scalability issues. In other words, it cannot scale up past a certain point. The result is frustrated investors and a lack of faith in a particular coin’s future.
In contrast, Visa and Mastercard can handle roughly 56,000 transactions per second (far more than they currently need). As a result, financial investors have little concern about whether they can appropriately scale of not. Indeed, their network speed has set the standard for transactions. Cryptocurrencies seeking adoption at point-of-sale locations will need to transact just as fast to gain a similar confidence. Investors will perceive anything less as being somewhat limited.
What We Are Working On
XTRABYTES™ employs a system of physical and virtual nodes that connect through a private virtual network named VITALS. These physical STATIC nodes, as they’re named, are required to sign-off on each transaction block. This configuration is why we use the phrase “Proof of Signature.” WIth this requirement, these nodes must be FAST!
VITALS is the proprietary network that connects STATIC nodes, allowing them to communicate with each other. Much like a VPN, VITALS is a private network that
Another aspect of
XTRABYTES™ Proof-of-Signature (PoSign) consensus method provides greater scalability than any off-chain solution. Moreover, PoSign will not be held hostage to any scalability trilemma (the need to choose between security, speed, and decentralization). Instead, its unique configuration allows it to optimize all three factors.
Finally, XTRABYTES™ PoSign will ensure faster network speeds than even Visa or Mastercard can muster. At present, the XTRABYTES team has submitted four patents for review. The team expects to hear back on these within the next month or two.