Scaling Ethereum Before Sharding, Casper

The Ethereum (ETH) team is actively looking for solutions that may help scale the blockchain network, as reported by Cointelegraph on July 15. Co-founder of Ethereum Vitalik Buterin is now considering third-party blockchains that have lower commission rates for transferring information. According to him, the Bitcoin Cash (BCH) blockchain could cope well with this task. The fact is that BCH has a high data throughput — 53 kilobytes per second (KPS) compared to Ethereum’s eight KPS, which are actively used by applications, Buterin revealed.

Scalability issues force the hand

Over the years, scalability has been the Achilles’ heel of Ethereum, and the team behind the second-largest cryptocurrency has been making every effort to increase it. In the current realities, the Ethereum blockchain is supposed to handle a maximum of 25 transactions per second (TPS), while the charts show that its throughput for July has not exceeded 11 TPS, and on several occasions in recent days, it has even dropped to around seven TPS.

The situation is complicated by a record number of pending transactions per second, which has already exceeded the 600 mark. Meanwhile, somewhat smaller blockchains managed to achieve greater performance. For instance, EOS is able to process 1,200 TPS and Tron can already handle 2,000 TPS.

Transactions per second comparison between top cryptos

Transactions per second comparison between top cryptos

What about Casper?

Buterin built a whole roadmap until 2020, which should lead Ethereum to reaching similar indicators of such payment giants as Visa, which processes 24,000 operations per second. The program includes a transition from the proof-of-work (PoW) to the proof-of-stake (PoS) algorithm, network sharding, as well as the introduction of the second-layer solutions: Plasma and Raiden.

The PoS consensus algorithm is expected to make transactions cheaper and accelerate the production of new blocks, while Layer 2 solutions are supposed to significantly increase the scalability of Ethereum.

The concept of sharding is…

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