One of the biggest problems facing the crypto world is that of scalability. And, as more users begin to use cryptocurrencies, the Blockchains of the main crypto assets such as Ethereum and Bitcoin find it difficult to scale. For this reason, Vitalik Buterin gives details on the scalability of Ethereum in the new version of the cryptocurrency, ETH 2.0.
Scalability on the Blockchain
Although it seems paradoxical, overcrowding is beginning to be a problem for cryptocurrencies. Since, although the ultimate goal of virtual currencies like Ethereum or Bitcoin is to be used by millions of users around the world. As more people enter the Blockchain of these currencies, they have trouble quickly executing all transactions.
And it is that, by the design of cryptocurrencies like Ethereum, the miners of its blockchain can only process a limited number of transactions at the same time. This is why, when the use of cryptocurrency has increased, so has the waiting time for ETH operations to be posted on the Blockchain.
This is precisely the situation that cryptocurrency faces today. Well, the rise of decentralized finance (DeFi) has driven an unprecedented demand for Ethereum, and a substantial increase in transactions with the cryptocurrency created by Vitalik Buterin. This is because most of the DeFi protocols in the crypto world are on the ETH chain.
As a consequence of this, today the waiting times and commissions for each transaction in Ethereum are immense. Generating losses in exchanges and companies, and increasing the pressure for the Ethereum Foundation to provide a solution to the problem of scalability. Just what Vitalik Buterin hopes to achieve with the new version of the virtual currency, ETH 2.0.
Vitalik Buterin talks about the future of Ethereum
Thus, through a post on the Ethereum Magicians forum, the founder of the Ethereum Foundation explains his plan to achieve scalability. For which it would integrate a method of validation of operations known as “rollups”. Which allows compressed transactions to be executed within the ETH Blockchain. While delegating other operations such as the execution of smart contracts outside the blockchain.
«Today Ethereum runs ~ 15 TPS (transactions per second). If everyone moves to rollups, we’ll soon have ~ 3000 TPS. Once phase 1 hits and the rollups are moved to the ETH 2.0 chunking chains for their data storage, we will theoretically go up to a maximum of ~ 100,000 TPS (…) Eventually, phase 2 will arrive, bringing the chunking chains of ETH 2.0 with native calculations, which will give us … ~ 1000-5000 TPS«.
Until now, the implementation of the rollups method for transaction validation has been resisted by the community. However, according to Vitalik Buterin, when it is implemented, the benefits it will bring to the entire community will far outweigh the problems it could pose. With which Ethereum hopes to conquer scalability in the short term.