“Three sentences” will allow Ethereum to expand to 1 million TPS in 6 years?

As we all know, the blockchain  network is very powerful. It can provide users with a shared distributed digital ledger, so that participants in a peer-to-peer network can directly exchange information or assets without relying on intermediaries. However, due to architectural reasons, the blockchain cannot efficiently achieve the three goals of decentralization, security and scalability at the same time, but can only choose two of the three, which is also called “blockchain impossible” Triangle” theory.

For most blockchains (like Bitcoin and Ethereum), they opt for decentralization and security at the expense of scalability. However, with the continuous breakthrough of on-chain technology, “having the best of both worlds” is about to become possible. Follow along with this article to see how Ethereum scales without affecting the other two properties.

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The “Impossible Triangle” theory has plagued the blockchain industry for years, and many alternatives to Lay1 have even chosen to sacrifice decentralization for transaction speed. While doing so helps improve the user experience, once centralization is chosen, the innovation, culture, or benefits associated with decentralization will not be realized. Although some scaling solutions including plasma and sidechains have emerged on Ethereum, they still fall short of the design goals.

Modular Ethereum

In general, the blockchain mainly shoulders three major tasks: execution, consensus and data availability. Execution refers to all transactions taking place, consensus refers to network participants agreeing on what happened, and data availability ensures that data is accessible to all. The blockchain has been monolithic since its inception, which means that it needs to perform all three tasks in a single-chain situation. What is exciting, however, is that now, more than a decade later, a modular blockchain architecture has finally emerged, which uses the concept of specialization to separate these tasks into separate independent chains. It is expected that by September 2022, when Ethereum upgrades to Proof of Stake (PoS), each task will have its own distinct chain: consensus will be handled by the PoS beacon chain, data availability will be handled by the current Ethereum chain, Execution will be handled by Lay2. It is worth mentioning that Lay2 is an independent blockchain built on Ethereum (Lay1). Compared with Lay1, Lay2 has faster throughput and lower fees, while taking into account decentralization and security. sex. 

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Today, although many Lay2s have emerged on Ethereum, it seems far from the scaling goal. Ethereum’s current processing speed is about 10 TPS (transactions per second), but to achieve its scaling goals, it needs to be at least 100,00 times faster (Visa’s processing speed is about 65,000 TPS). In order to scale to 1 million TPS, Ethereum needs to further complete the following three things – improve rollups, sharding and increase network bandwidth. 

1. Rollups  – 100x increase in throughput

Rollups are independent blockchains that take on the task of executing transactions, so with it Ethereum can focus on consensus and data availability. Executing transactions on Rollups instead of the main chain could allow the Ethereum network to scale 10x. In addition, more optimizations can be achieved through upgraded data compression technology. Data compression refers to reducing the amount of detail needed to represent the same underlying information, and publishing compressed data to Ethereum would further reduce costs while increasing scalability by another 10x.

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2. Data sharding – increase throughput by  100 times

Currently, every consensus participant must download all the data from the block and take the lead in independently verifying the data before validating the block. The whole process is very inefficient, making it a major bottleneck for the blockchain network. As a network architecture that expands data availability, sharding allows network participants to download only samples of all data while ensuring data availability, increasing the scalability of Ethereum by 10 times. In addition to this, sharding introduces a new transaction type – “blob-carrying transactions”. Carrying blobs on Lay2 is much cheaper than current transaction types and could increase Ethereum scalability by another 10x.

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 3. Network bandwidth – 10x increase in throughput

The last part of Ethereum that needs improvement – “network bandwidth”, differs from the previous two in that it relies on external technological advancements to scale the network. Typically, consumer bandwidth increases by about 50% per year (similar to Moore’s Law), so it takes about five to six years to achieve a 10x increase in bandwidth. The graph below shows the growth of network bandwidth from 1983 to 2019.

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Summarize

If Ethereum is to gain mass adoption, it is imperative to increase its scalability. And once the merger of Ethereum is successful (expected to be completed in September 2022), these expansion technologies mentioned in the article will definitely be a priority for development. Considering the immaturity of new technologies and the growth constraints of network bandwidth, Ethereum is expected to scale to 1 million TPS in the next six years.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/three-sentences-will-allow-ethereum-to-expand-to-1-million-tps-in-6-years/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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