Scalability of Blockchains

blockchainBitcoins or we can say Crypto currencies are becoming more versatile now these days, so to check and scale the currencies like bitcoins and ethereum have which taken place at this current Aura.

There are many impressive and initial design which was not meant to be spread for its adaptations, as for transactions like visa and PayPal, this bitcoins and other new currencies have to compete with more mainstream systems and moreover to scale their transactions it’s like for visa it has somewhat 1667 transactions per second and PayPal manages to 193 second per transactions, whereas bitcoins only have 7 transactions per second and ethereum is about 20 transactions per second, on the basis of their scalability these number can be improved, so the problem which is arising in crypto currencies is the time taken to put a transaction in the block and also the time taken to reach the consensus.

So basically the problems in the crypto currency is the time taken to be processed, it’s like a transactions firstly goes to the miner and then miner puts the transaction data into blocks they have mined and after that the transactions becomes deemed completely.

Moreover, this bitcoins have becoming more and more popular now these days so this becomes more time consuming, and also there is some added fees in small transactions, it means if the miners gets high fees, the faster miners will put it into block, so the people with the lower fees have to wait for 13 minutes for their transactions, the same is with the ethereum it is supposed to get process 1000 transactions per second but practically this crypto currency is limited by 6.7 million gas limit on each block, here the gas means the amount of computational efforts, since every block has its limit so miners add the transactions as per the requirements which is either equal or less than the gas limit of the block.

The network of this currency’s are structured in a way as a peer to peer network, there is no hierarchy or any authorized body, it is a flat topology, this currency are structured in a decentralized way because it states that there should be no governing body and everybody should be treated equally which determines the value of currencies based on whim and the facts are true both for bitcoins and as well as for ethereum.

Now everyone must be thinking if there is no centralized entity how everyone will know about the system and also about the certain transaction which has or have happened so to tell you this network follows a gossip protocol, which means the way the gossip spreaded the similar way it is gets spread into their chains and networks, but to their trustful nodes only but at the same time the problem arises which means that the increase in the nodes of crypto currencies network, the slower the whole process becomes and also the consensus happens in a linear manner which says that there are three nodes like A,B,C,

So first A will calculate and verify then B will do the same process the same way the C will do, as its in a line way so the proof of stakes makes it simpler, easier, and faster, it means that in this process the system will attack individual shards which may not have high hash rate.