How can Ethereum Increase the Number of TPS Without Creating Problems on its Network?
Ethereum (ETH) is one of the most known cryptocurrencies and blockchain networks in the world. It has allowed several companies and projects to launch their own Initial Coin Offerings (ICOs) and create their tokens. However, Ethereum has a problem that it needs to solve: limited transactions per second.
During the last bull market, when the number of transactions on the network skyrocketed, Ethereum blockchain experienced delays and high fees for processing small transactions. However, developers behind the popular blockchain network are working with the intention of solving this issue.
Two of the solutions are known as Sharding and Plasma. Sharding is an important concept that derived from traditional databases. The intention is to divide the data into different pieces that can be stored in different servers.
This would clearly help the network to scale since it would not need for the nodes in the network to be ‘full nodes.’ Other nodes would also be able to increase network security and reduce transaction times and fees. This works in a very simple way since every node will have a subset of transactions. If there are transactions that are not part of this specific subset, then, they will be sources from other nodes.
Another way to scale the network is by using off-chain transactions, something similar to what Bitcoin is doing with the Lightning Network (LN). This would allow users to send and receive ETH without having to broadcast all the information on the main network. This would allow Ethereum to be as fast as other payment processors, explains Vitalik Buterin, Ethereum’s co-founder.
Nonetheless, it is very difficult for the community to test these upgrades without consequences on the network. Developers working on Ethereum blockchain are doing the best to scale the network and reduce transaction times and fees paid. At the same time, the goal is to remain competitive in a market that has several players that offer enhanced services, such as Tron (TRX).
The number of transactions per second will have to increase in the future, and this will come with sharding, Plasma and off-chain transactions.