The creator of Ethereum, Vitalik Buterin, has recently talked about the transaction times and speeds behind Ethereum and the second-layer solutions such as Sharding and Plasma. In a recent OmiseGO AMA session, Buterin said that the Ethereum network will eventually be able to process 1 million transactions per second and more than 100 million transactions per second in the future.
Buterin also emphasized that both the Ethereum blockchain protocol and decentralized blockchain networks are struggling with scalability issues. In September 2017, he noted that Bitcoin and Ethereum have been processing three to six transactions per second at peak capacity. However, hundreds of thousands of transactions were needed at that point in order for the blockchain to support large-scale payment networks like Visa, stock markets like Nasdaq and Internet of Things (IoT) networks.
As Buterin said:
“Bitcoin is currently processing a bit less than three transactions per second and if it goes close to four, it is already at peak capacity. Ethereum has been doing five per second and if it goes above six, then it is also at peak capacity. On the other hand, Uber on average does 12 rides per second, PayPal several hundred, Visa several thousand, major stock exchanges tens of thousands, and in IoT, you’re talking hundreds of thousands per second,”
Buterin also stated that the second-layer scaling solution that is currently being tested on Ethereum could enable the network to support large-scale decentralized applications with millions of users.
While Sharding focuses on splitting a blockchain network to shards which are then grouped in nodes, Plasma enables Ethereum to process micropayments by creating child blockchain networks.
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