Northwestern University Team Discovers New Bitcoin Scalability Solution
Northwestern University Team Discovers New Solution to Bitcoin’s Existing Scalability Problem
Scalability refers to the efficiency of bitcoin and cryptocurrency transactions. This has been a growing problem, especially for bitcoin. The main argument made here is that if blockchain technology can disrupt diverse industries, then scalability should be on par. Unfortunately, it is not the case, as traditional payment service providers are able to process thousands of transactions per second compared to bitcoin’s three to five.
While many crypto projects have since claimed their respective tokens can help to address the problem, a feasible and sound solution is yet to be found. At least, until that of the Northwestern University.
A Northwestern University team, consisting of both students and faculty members, with varying expertise levels within the blockchain industry have made it their mission to find a well-grounded solution. This effort, reported by Market Watch, also includes bloXroute labs’ participation.
As for the results, it turns out the team was capable of increasing bitcoin scalability efficiency 100 times more than it normally would, however, to do so, it has been stated that some centralization is needed.
Sarit Markovich, Clinical Associate Professor of Management School compared bitcoin to the central bank, in which he called the former “decentralized” and the latter, “centralized”. The argument worth highlighting here, is that in order to scale bitcoin, “we have to compromise, which means we need to get some level of centralization.”
Increasing bitcoin’s processing capacity was also considered, however, another problem seems to come about. The case made here is that increasing bitcoin’s processing capacity will in turn drive up costs for miners, ultimately forcing them to call it quits. This alone can hinder the nature of the decentralized network.
What Is The Team Proposing?
The current method requires miners to validate blocks and then, passing it forward to peers or nodes within the network. This is what bloXroute labs believes is creating the scalability issue, as the sending of information is ongoing until the entire network is included, which seems to be taking far too long.
Hence, the duo’s plan is to “safely increase the blocksize and to cut down the time interval between blocks”, as per their white paper. Markovich also makes the case that despite the minimal centralization present, the overall result is that of a “decentralized network”, which he strongly believes will bring “good results”.
To bloXroute labs, if scalability isn’t present, then neither is a real-life use for said cryptocurrency. They clearly believe that the problem at hand is giving everyone too much say, which they also understand given the nature of blockchain technology and cryptocurrency.
Do you think it is a good idea to introduce some centralization in order to fight off scalability concerns? Comment below.