Australian Startup Creates Highly Scalable Blockchain Network
Around the world, there are hundreds of different blockchain networks that tried to offer highly scalable solutions. However, back on September 26, Australia’s National Science Agency known as CSIRO developed a highly scalable blockchain network.
CSIRO is a recognized and independent Australia federal government agency that is responsible for scientific research. The blockchain network is known as Red Belly and has been developed with the University of Sydney. After being created, the agency conducted a pilot using Amazon Web Services (AWS) global cloud infrastructure. The results were surprising. The network was able to process more than 40,000 transactions per second.
Moreover, this blockchain network is also able to process information on a network that is thousands of times larger than the Bitcoin network. It is also bigger than Ethereum’s network.
The Ethereum researcher known as CPereez19 showed that transactions per second on the Ethereum network are 25.346 tx/second. He has also taken into account the block gas limit and many other variables.
About It, He Explained:
“The block gas limit [of Ethereum] is 7,999,992. Transaction costs 21,000 gas (let’s assume nothing else is attached). That’s around 380 transactions per block. With a block time of around 15.03 seconds, as ETH Stats shows, this gives us approximately: 25.346 tx/s.”
But the new Red Belly network is even more surprising since it is able to support even more transactions per second than the VISA network. VISA is able to handle 24,000 x/second. And indeed, the so-called VisaNet is one of the most used payment networks around the world. Currently, it processes 150 million transactions per day.
Nonetheless, both Ethereum and VISA process a very similar number of transactions. VISA would be able to offer even more transactions per second. During transaction peaks, Ethereum was able to process more than 1,200,000 transactions in just a day. But the network was completely congested.
At the same time. Vitalik Buterin, Ethereum’s co-founder, explained that Ethereum would be able to reach 1 million transactions per second using a second-layer scaling solution. Ethereum developers are currently working to release sharding and plasma.
Off-chain transactions allow blockchain networks to reduce the pressure on their mainnet. That means that transactions can be processed faster and paying fewer fees.
There are other blockchains that are able to process a large number of transactions per second. However, these are permissioned ledger projects created by companies such as JP Morgan or Intel. And indeed, they are able to process even 100,000 transactions per second.
But there is an important difference between these networks and open blockchain solutions. JP Morgan and Intel offer closed networks, meaning that they are not decentralized. JP Morgan informs that its network has been created with the intention to process high speed and high throughput processing of private transactions.
Red Belly is different. Researchers at the University of Sydney and Australia’s National Science Agency known focused on decentralization. During the pilot phase, the researchers were able to install 1,000 virtual machines in 18 different geographic regions. Red Belly aims to work in a similar way to Ethereum and Blockchain.
The machines were located in North America, South America, Asia Pacific (Sydney) and Europe.
The Researchers Explained:
“A benchmark was set by sending 30,000 transactions per second from different geographic regions, demonstrating an average transaction latency (or delay) of three seconds with 1,000 replicas (a machine that maintains a copy of the current state of the blockchain and the balance of all accounts.)”
At the same time, Red Belly aims at solving two problems: proof-of-work (PoW) consensus algorithm and scalability. Clearly, PoW had a strong environmental impact due to the fact that it is necessary to use a lot of energy to protect the network. The new algorithm created by Red Belly is completely different since it does not consume energy.
Other blockchain networks such as Ethereum have established a clear roadmap in which the main goal is to become completely Proof-of-Stake (PoW), something that would allow reducing energy consumption.
In October, Ethereum would be releasing a new upgrade to enlist the new Casper protocol rewarding validators with ETH for they processing work. Casper discourages bad actors cutting a percentage of their reward.
PoS blockchain systems are able to handle more information and transactions since miners do not have to confirm the information. PoS systems are very efficient because they process a lot of information consuming just a little amount of energy.
Back in August, the Commonwealth Bank of Australia in partnership with the World Bank issued the first bond on the Ethereum blockchain. The bond is known as Bond-I and has been launched through Microsoft’s Azure platform. Around the world, there is an increased demand for blockchain-based systems.
In the future, there will be more tests related to blockchain products. The Red Belly conducted two experiments. In the first one, it was possible to register 660,000 transactions per second. However, when the network grew and the team installed new nodes, the number of transactions decreased to 40,000 transactions per second, something much more realistic for the company.
The Red Belly blockchain has different competitors in the market, including Cardano, EOS, Ripple and Stellar. All of them work with PoS and unique consensus algorithms.
Back on April 11, 2018, the Australian Transaction Reports and Analysis Centre (AUSTRAC), announced new regulations for the cryptocurrency market. The main intention was to improve the situation of blockchain and crypto companies in the country.
After it, three cryptocurrency exchanges have been licensed in the market. However, the government warned investors about initial Coin Offerings (ICOs). At the same time, local authorities informed blockchain projects that those conducting ICOs would have to be compliant with different local regulations imposed by the government of Australia.
Nonetheless, the situation in the Australian market could improve in the near future. New projects, better regulations and a clear legal framework would help the country to find a better position in the cryptocurrency market.
Red Belly could be one of the most important networks, being able to process an incredible number of transactions without losing decentralization.