Vitalik Buterin, the founder of Ethereum, has put his heart and soul into developing Ethereum to be the best amongst the cryptocurrencies. He had a positive message during the latest OmiseGo AMA session. The message will help silence the critics who pinpoint scalability issues.
Vitalik explained that Ethereum would be able to process 1 million transactions per second soon thanks to second layer scaling solutions such as Sharding and Plasma. He further said that potentially 100 million transactions per second would be possible thanks to scaling solutions being developed.
Sharding splits the network into multiple smaller networks which are known as shards so that all transactions don’t need to be sent across the entire network for validation. Hence it enables the processing of transactions in much less time thanks to the information validation process being optimized.
Plasma will enable the processing of micropayments as it will create small networks within the original blockchain for faster processing of information.
Vitalik Buterin realizes that large blockchain networks like Bitcoin and Ethereum face scalability issues. In an interview in September 2017 with angel investor Naval Ravikant at Disrupt SF 2017, he 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.”
In a May 30th OmiseGO AMA on YouTube, Buterin explained how the two solutions work in complement:
Vitalik Buterin explained the scenario of the two solutions working together at the OmiseGo AMA session.
“The reason I think layer 1 and layer 2 [networks] are complementary is because ultimately, if you look at the math, the scalability gains from the layer 1 improvements and layer 2 improvements do ultimately multiply with each other. If you have a Sharding solution, the Sharding solution itself might increase the scalability of Ethereum by a factor of 100, or eventually even more. But then, if you do Plasma on top of the scalability solution, then what that means is, you’re not just doing 100 times of the amount of activity but you are doing 100 times the amount of entrances, the amount of exits, and dispute resolutions.”
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Source: Toshi Times
Original Post: Vitalik Buterin: Plasma and Sharding Can Scale Ethereum by 10,000x