The Ethereum Killer Is Ethereum 2.0: Vitalik Buterins Roadmap
The Ethereum Killer Is Ethereum 2.0: Vitalik Buterins Roadmap Speaking on November 25 at BeyondBlock Taipei 2017 , Ethereum inventor andco-founder Vitalik Buterin outlined his vision for Ethereum 2.0. He described major changes in Ethereums architecture that are likely to be implemented over the next few years to improve Ethereum in terms of privacy, safety (consensus safety and smart contract safety) and, of course, scalability, which was the main focus of Buterins talk. Buterin doesnt seem worried about competitors. The Ethereum killer is Ethereum, the Ethereum of China is Ethereum, the Ethereum of Taiwan is Ethereum 2.0, he said. The fact that Ethereum is booming seems to confirm Buterins optimism. ETHs price has been relentlessly climbing, recently reaching almost $500, and Ethereum is handling more transactions than all other major blockchains combined. Decentralization, scalability and security are among the important properties that blockchain systems should have, but there are conflicts. Off-chain solutions are useful, but limited. According to Buterin, its very easy to have two of these properties but very hard to have all three. However, Ethereums ambitious goal should be that of achieving all three at the same time. We want to scale to thousands of transactions per second, on chain, without any supernodes, reads one of Buterins slides. Sharding dividing a blockchain network into several smaller component networks (called shards) capable of processing transactions in parallel is considered to be a promising way to achieve high throughputs comparable to the thousands of transactions per second of traditional payment networks such as Visa and MasterCard. You can think of [sharding] as, in a fairly simple version, creating a blockchain where you have, lets say, Continue reading >>
Dogethereum Success: Light At The End Of The Tunnel For Ethereum (eth) Scalability Problem
Dogethereum Success: light at the end of the tunnel for Ethereum (ETH) Scalability problem Dogethereum also referred to as Dogecoin Ethereum, was a test project where developers were trying to find out whether Doge coins could be transferred to the Ethereum (ETH) network, be used there as individual entities and then be returned to the Doge network. This means a coin of one blockchain network entering the network of another blockchain and getting back to its original blockchain without being exchanged. This required a way to solve the huge computational scalability problem that arises in transactions. Over the years, blockchains have suffered from their limited scalability. While other forms of funds transfer like Visa make more than 1,500 transactions per second, Ethereum (ETH) can hardly make a 20 transactions per second practically speaking. Ethereum is even better since some blockchain networks like Bitcoins can even not do 10 transactions per second . Comparing the scalability of the traditional money transfer methods to that of the blockchain networks is like a joke. They are completely apart. It is like comparing Neptune and Earth. Even transferring same coins from one persons account to another persons account requires quite a process. A miner will have to pick the coins being transferred and place them into a block and then validate them and release them to the recipient on the other end. All these ends up eating a lot of time. And in addition, in the process the miner charges some transaction fee for all that. Another issue is the gas limitation where every block has a gas limit. Therefore, a miner can only bring together transactions whose gas requirement add up to the gas limit of the block they are being put into. This limits the number of transactions tha Continue reading >>
Blockchain Scalability: When, Where, How?
Blockchain Scalability: When, Where, How? Angel Investors, Startups & Blockchain developers... Blockchain Scalability, a very real problem! Cryptocurrencies are becoming more and more mainstream. In fact, lets check out how popular bitcoin and ethereum have gotten over time. This is a graph of the number of daily bitcoin transactions tracked over the years: And here we have the number of Ethereum transactions per month over the years: Now, this may look very impressive, but here is the thing, the initial design of cryptocurrencies was not meant for widespread use and adaptation. While it was manageable when the number of transactions was less, as they have gotten more popular a host of issues have come up. The scalability problem of cryptocurrencies For bitcoin and ethereum to compete with more mainstream systems like visa and paypal, they need to seriously step up their game when it comes to transaction times. While paypal manages 193 transactions per second and visa manages 1667 transactions per second, Ethereum does only 20 transactions per second while bitcoin manages a whopping 7 transactions per second! The only way that these numbers can be improved is if they work on their scalability. If we were to categorize the main scalability problems in the cryptocurrencies, they would be: The time is taken to put a transaction in the block. The Time Taken To Put A Transaction In The Block In bitcoin and ethereum, a transaction goes through when a miner puts the transaction data in the blocks that they have mined. So suppose Alice wants to send 4 BTC to Bob, she will send this transaction data to the miners, the miner will then put it in their block and the transaction will be deemed complete. However, as bitcoin becomes more and more popular, this becomes more time-consu Continue reading >>
How Will A $100 Mln Grant Help Ethereum Scale?
How Will a $100 Mln Grant Help Ethereum Scale? A $100 mln grant created by six large-scale Blockchain projects is expected to speed up the development of scaling solutions for the Ethereum Blockchain network. On Feb. 16, six large-scale Blockchain projects OmiseGo, Cosmos, Golem, Maker and Raiden, that have completed successful multi-million dollar initial coin offerings (ICOs) last year, along with Japanese venture capital firm Global Brain have created the Ethereum Community Fund (ECF), to fund projects and businesses within the Ethereum ecosystem. The ECF will begin with $100 mln, likely raised by the six Blockchain projects. Some members of the Ethereum Foundation including Ethereum creator Vitalik Buterin plan to advise the fund. Buterin told TechCrunch : Ethereum has grown beyond my expectations over the last few years, but the work is clearly not finished. Delivering value that matches the hype should be the mantra of 2018; efforts such as the ECF which help organize the development of the ecosystem are going to help to make that possible. Buterins personal goal of funding open-source projects In September 2017, Buterin revealed that his advisor shares from $1.8 bln project OmiseGo and $370 mln decentralized cryptocurrency exchange Kyber Network will be allocated in a private fund to finance open-source projects building innovative technologies such as scaling solutions for the Ethereum Blockchain network. Buterin emphasized that he will no longer advise any other Blockchain project apart from OmiseGo and Kyber Network and that all of the incentives he received from the two Blockchain projects will be used to improve the Ethereum protocol. At the time, Buterin said : I'm announcing that 100% of my OmiseGo + Kyber Network advisor shares will be either donated to Continue reading >>
Ethereum Scalability Plan Takes Another Step Forward
Ethereum Scalability Plan Takes Another Step Forward Vitalik Buterin, the developer behind the creation of Ethereum network, stated that the smart contract platform sees considerable progress in the deployment of Sharding technology that would allow further scalability. Even though Ethereum is nearly six times faster than Bitcoin network, the issue of scalability is still there as DApps are being launched regularly using its platform. In fact, the congestion and high processing fees have been a reason for several new projects to use other platforms such as Stellar . In a developer meeting Vitalik Buterin confirmed that there is significant progress on resolving scalability issues by saying It seems like part one of phase one is getting something like being already done. The sharding technology, which is currently implemented to achieve scalability, is a process of dividing the Ethereum block chains data into manageable small parts. Buterin referred to an initial spec posted on Github and said Its theoretically a good spec of what minimal sharding is going to look like. Buterin also announced that the next phase of the four-stage scaling plan will be completed in about a months time. He also added that development work will mostly revolve around stateless clients, a different kind of Ethereum software that will not have a need to process the complete history of the platform. Then from there were going to try and shard it into a working test, a kind of test network, During the developers meeting, Buterin also expressed his optimism about Casper, the new consensus protocol that is currently being tested. The testnet has been facing several issues with the software it deploys. Buterin believes that the core of the project is successful. When questioned about its adoption b Continue reading >>
Ethereum Scalability Research And Development Subsidy Programs
Ethereum scalability research and development subsidy programs The Ethereum community, key developers and researchers and others have always recognized scalability as perhaps the single most important key technical challenge that needs to be solved in order for blockchain applications to reach mass adoption. Blockchain scalability is difficult primarily because a typical blockchain design requires every node in the network to process every transaction, which limits the transaction processing capacity of the entire system to the capacity of a single node. There are two main paths to improving blockchain scalability. The first ( sharding ) involves creating better-designed base-layer blockchain protocols, which still maintain most of the desired decentralization and security properties of a blockchain that we see in the simple designs available today but only require a small percentage of nodes to see and process every transaction, allowing many more transactions to be processed in parallel at the same time. The second involves creating layer 2 protocols that send most transactions off-chain and only interact with the underlying blockchain in order to enter and exit from the layer-2 system and in the case of attacks on the system. We view the two strategies as complementary with each other and we believe in supporting a multi-pronged strategy toward Ethereum scalability that engages both strategies and treats them as complementary with each other. Technical reading materials on Ethereum scalability technologies A note on data availability and erasure coding: Sharding preliminary spec: Video describing the strategy for incorporating sharding into Ethereum over time: With the Ethereum blockchain reaching 1 million transactions per day, and both Ethereum and other blockchai Continue reading >>
Ethereum's Scalability Partially Solved As Dappchains Prepares To Launch
Twitter-scale apps on ethereum claims a team of VC funded eth developers that have been running Solidity coding lessons when not working on their game dapps or how to scale them. This coming March, they are to showcase a dapp that runs on its own blockchain (dappchain) while connected to the ethereum network, so potentially solving the scalability problem for at least some projects, while providing an important piece of the puzzle for the entire network. One dapp, one dappchain, they say. Allowing CryptoKitties, Etherdelta, Leroy-Twitter, or any other dapp, to handle millions of transactions, potentially fully free, with verifications virtually instant, while also connected to ethereums main-net. They plan to do so by utilizing sidechains, a method that connects blockchains described as far back as 2014. One way to understand them is, instead of scaling vertically by having bigger blocks on ethereum or sharding ethereums chain, you scale horizontally by having many chains that speak to each other. These other chains can have their own rules which do not affect ethereums rules. So they could be running on delegated proof of stake or even on proof of authority. They can be permissioned or permissionless, centralized or decentralized, and so on. That could mean an ethereum based tweet on say Leroy does not have to pay the same amount of gas, nor be backed by the same level of security, as a one million dollars worth of eth transaction, with the dapp having its own nodes. And more importantly it could mean kitties can get off to their own chain and do whatever they like there rather than creating a mess on ethereums blockchain clogging it up. Yet, all still connected to eth. The benefits of sidechains have long been know, just as it has long been known they have one proble Continue reading >>
Vitalik Announces Ethereum Foundation Subsidy Programs To Tackle Scalability
Vitalik Announces Ethereum Foundation Subsidy Programs To Tackle Scalability The Ethereum Foundation announces two subsidy programs to spur scalability development, favoring a multi-pronged approach. An announcement made by Vitalik Buterin on January 2, 2018, cut right to the core of the scalability issue, unveiling two subsidy initiatives designed to reward participants for committing their resources to sharding and second layer protocols. The foundation invites teams of developers, companies, and universities to apply for subsidy amounts between $50,000 and $1,000,000, rewarding participants for committing their resources to expanding the capacity of the ecosystem. Subsidies would be awarded based on merit, alongside the scope, scale, and quality of the project's impact. Acknowledging that scalability was perhaps "the single most important key technical challenge" for blockchain applications to reach mass adoption, Buterin noted that the two main paths to scalability sharding and second layer protocols are "complementary with each other." As a result, the Ethereum Foundation will support a multi-pronged approach towards scaling Ethereum out to meet demand, which has grown to nearly 1 million transactions per day. With the Foundation's stated goal of scaling Ethereum to process a higher volume of transactions, sharding has come under the lens. This method for distributing the throughput of the blockchain across multiple "shards" would eliminate the need for every node in the network to process every transaction. As sharding development approaches an initial prototype, its next step towards implementation would require a multi-client ecosystem to provide testing. "In this next step," Buterin relates to the Ethereum community, "we want you to be involved. We want the Et Continue reading >>
How Will Ethereum Scale?
Like other public blockchains, ethereumintends to support as many users as it can. The problem is that, today, we don't really know the limits of theplatform. Because of a hard-coded limit on computation per block, the ethereum blockchain currently supports roughly 15 transactions per second compared to, say, the 45,000 processed by Visa. This limitation of ethereum and other blockchain systems has long been the subject of discussion by developers and academics. While ethereum developers might like to highlight how the flexible smart contract platform differs from bitcoin, for example, it isn't unique in regards to scalability. As disappointing as that might sound, there's hope in proposed solutions that havent made it into the official software yet. Ethereum and bitcoin use a combination of technical tricks and incentives to ensure that they accurately record who owns what without a central authority. The problem is, its tricky to preserve this balance while also growing the number of users (especially to the point where average people can use the system to purchase coffee or run applications). That's because ethereum depends on a network of 'nodes', each of which stores the entire ethereum transaction history and the current 'state'of account balances, contracts and storage. This is obviously a cumbersome task, especially since the total number of transactions is increasing approximately every 1012 seconds with each new block. The worry is that, if developers raise the size of each block to fit more transactions, the data that a node will need to store will grow larger effectively kicking people off the network. If each node grows large enough, only a few large companies will have the resources to run them. Despite the inconvenience, running a full node is the best w Continue reading >>
What Cryptokitties Reveals About Ethereum Scalability Issues
What CryptoKitties Reveals About Ethereum Scalability Issues Join our community of 10 000 traders on Hacked.com for just $39 per month. In case you thought 2017 couldnt get any weirder, the world is now obsessed with virtual cats. CryptoKitties is a virtual game that allows players to collect and breed digital cats. In the games short lifespan (it launched on November 28th) it has already drawn interest from players across the globe. Many users are drawn to the game because it is completely personalized. The cats an individual breeds or collects are uniquely their own and cannot be cloned by other users. When users breed their own cats they can add distinctive colors, facial features, or backgrounds to distinguish their cats from other users on the marketplace. Once a cat has been bred, its creator can sell it on the marketplace. As of December 11th, 2017, these virtual cats had generated an estimated $12 million in sales . Although the trading of virtual cats might seem like a silly, fleeting trend, the transactional aspect may have long-term implications. What really sets CryptoKitties apart from other addictive online games is its Ethereum foundation. The marketplace, developed by AxiomZen , was built on Ethereums blockchain ledger, and users buy and sell cats on the protocol using Ethereums proprietary token, Ether. CryptoKitties has quickly become the most popular smart contract on Ethereum, and as of December 10th, 2017, the marketplace accounted for almost 15% of Ethereums total network transactions . In many respects, the mass hysteria surrounding these kittens is a win for the blockchain industry, as a whole. The game has brought blockchain technologyspecifically Ethereuminto mainstream media. One of the biggest issues hindering the progress and dissemination Continue reading >>
Tackling Ethereum Scalability Issues
By Vojtch imetka , edited by Yalor , Griff , Kris With tears in our eyes we head back to testnet, as the fees on the Ethereum mainnet are just too high. The truth is we should have been live by now, the Giveth product roadmap clearly says that we, as the Giveth Decentralized Altruistic Community (DAC) , will be using the DApp ourselves in December and the first Campaigns will be created by the 15th of January. Well, were not. Why? Because of CryptoKitties, because of volatility in the ether and token prices and because Ethereum is not ready for DApps to scale on mainnet. However, we are developing an innovative testnet approach, pegging our Giveth Rinkeby token to mainnet ETH to bide us time while we build a coalition to collaborate with other teams whose DApps also need a solution. There will likely be many updates to this system and likely more migrations in the future, but alas Rome was not built in a day. Technically we are live on the Main Ethereum network, we just chose not to use our own DApp. We paid over 0.5 ETH in gas to deploy our smart contracts, $100 to create one Campaign, $11 for creating each Milestone. To register in our Dapp you need to pay $2.75 in gas and another $8 each time you want to donate. It didnt take long to realize this is not the way. Using the testnet was clearly the best option going forward in the short term, and we would use Ropsten if we didnt have to 51% attack it to deploy our contracts. Whereas we received nothing but a warm embrace from the maintainers of the Rinkeby testnet: Pter Syilgyj created a bridge between Rinkeby and the main network just for us! CryptoKitties now dominates that digital space as well and they are hungry for gas. Even Giveth hasone! The Giveth DApp consists of several smart contracts which require numerous Continue reading >>
Giveth's Solution For Ethereum Scalability | Btcmanager
The crypto-scene is growing at an extraordinary rate. Its hard to argue that fact. Whether it will outdo fiat currencies or if the whole thing is a big bubble is a whole different topic, but it is growing quickly. Bitcoin, obviously, spiked to insane levels in 2017 but just behind it was Ethereum. Now, with the hiccups Bitcoin was facing at the end of 2017 and without a real solution in sight for the transaction issues they were facing Ethereum could potentially take its place as the top dog in decentralized currencies, at least as far as usefulness goes. However, with this attention Ethereum has been rapidly garnering, upscaling the Ethereum blockchain to handle its increased load from Dapps and transactions is a real concern, especially for all the many different startups attempting to lay their stake in Ethereum mainnet. One such startup is that of Giveth . Giveth is attempting to create a platform where organizations can transparently receive from donors without having to deal with the bureaucratic hassle of a regular charity by keeping everything available to the public via the blockchain. A simple enough and highly beneficial idea for society as a whole, however their product roadmap has hit a bit of a snag. That is the fees involved on the mainnet of Ethereum are beginning to be too high. So, in the meantime, while Ethereums main network slowly fixes this scalability issue companies like Giveth have to find workarounds . Luckily, they arent alone in this boat. By working together with other startups, such as Aragon, Swarm City, and Status, they are coming up with workarounds to maintain transparency while avoiding the main Ethereum network. With the help of a bridge between the Rinkeby testnet and Ethereum main chain, created specifically for Giveth by Pter Szil Continue reading >>
Ethereum's Scalability Concerns Buoy Alternative Platforms - Bitcoinist.com
Ethereum may have emerged to be the dominant platform for the development of decentralized applications (dapps). However, issues concerning its scalability are starting to prompt developers to consider alternative platforms. Several notable projects have already moved on from Ethereum, choosing the likes of NEO and Stellar as their new platforms of choice. The market also seems to be getting excited by the emergence of these blockchains. Established trading platforms like eToro are now starting to support NEO due to the tokens strong showing in light of the massive crypto market correction this February. Stellar was also kept afloat by these new partnerships. Increased adoption would only help further their respective standings in the crypto space. This, however, should not take away from Ethereums accomplishments so far. The platform has been instrumental in ushering more participants in crypto activities. Many blockchain startups used the platform to conduct their token sales over the past year. It is also still currently the most popular blockchain and smart contract development platform. According to the State of Dapps, there are now over 1,090 dapps built on it. Ether, the networks token, sits behind Bitcoin as the second largest cryptocurrency with a market capitalization of over $91 billion. Usage is also on the rise especially now that more projects are gaining traction. The Ethereum blockchain already topped 160 million total transactions this February which is quite the feat since the blockchain has only been live since mid-2015. In comparison, Bitcoins blockchain has only recently reached 300 million total transactions even if it has already been around for nearly a decade. Ethereums popularity isnt without tradeoffs. As usage increases, the more scalability Continue reading >>
Where Is Blockchain Scalability Bottleneck?
Where is blockchain scalability bottleneck? There is a moment I still don't understand about blockchain. I've never seen ethereum client coniniously under 100% CPU or network load. So why isn't it possible to process transactions faster? I assume that 100% GPU load on mining machine is not a bottleneck, because block size is arbitrary. So, where is exactly the bottleneck? In my opinion state channels are badly underutilized and much of the scaling debate would be moot if this mechanism was more widely deployed. Sentinel Dec 11 '17 at 23:54 There are two types of speed limits that are in play here. These are latency and throughput. Latency is the amount of time one must wait until a transaction is processed. The other is throughput: the number of transactions that can be processed in a particular amount of time. Imagine the difference between a supermarket with 100 patrons and 10 checkout counters and a grocery store with 5 patrons and one checkout counter. Now, imagine each checkout counter can process one patron per minute. In the first case, the average person waits 5 minutes to get checked out. In the second, each person waits an average of 2.5 minutes. On the other hand, the supermarket can handle 10x as many customers per minute. Thus, a busy supermarket might have higher throughput than a small grocery store, but the latency might be higher. Now imagine that both stores are closed for 20 consecutive hours a day and gets 100 customers a day. Essentially, you need to wait, on average, 10 hours to buy your groceries (the checkout time is negligible). You can see that the checkout counters show low utilization. In Ethereum, the minimum time between blocks is, on average, around 25 seconds at the moment. Thus, the minimum latency is an average of about 12.5 seconds (i Continue reading >>
Vitalik Buterin And Joseph Poon On Ethereum Scalability Issues, Plasma And Cosmos
Vitalik Buterin and Joseph Poon on Ethereum Scalability Issues, Plasma and Cosmos Scalability is preventing the commercialization of blockchain Decentralized blockchain networks are significantly harder to scale than centralized platforms or follow us on Facebook , LinkedIn , Twitter and Telegram At the 3rd Annual Global Blockchain Summit hosted by Wanxiang Group, Ethereum co-founder Vitalik Buterin, Bitcoins Lightning co-author Joseph Poon, and Cosmos blockchain project founder Jae Kwon took part in a panel discussion. They discussed the scalability issues of Ethereum, solutions that could scale the Ethereum network in the upcoming years, and the creation of enterprise-grade blockchain networks with flexibility. The Ethereum Foundation and its development communities, alongside independent organizations, are actively developing scalability solutions that could improve the flexibility of the Ethereum network. Experts, including Buterin, agree that scalability issues are preventing the commercialization of blockchain . They contend that the implementation of unique on-chain and off-chan scaling solutions, could afford Ethereum the scalability to support millions of active users while maintaining decentralization. I do think that scalability is one of the key problems that is standing between the blockchain technology hype, which we already have, and the blockchain technology mass production. Buterin emphasized that leading public blockchain networks like bitcoin and Ethereum can settle about six transactions per second at maximum capacity. However, as he explained, Ethereum needs to be able to settle thousands of transactions per second to support real mainstream applications. I do think that scalability is one of the key problems that is standing between the blockchain Continue reading >>