Scalability Challenge of Ethereum Blockchain Platform
We are surrounded by technology. Everything is evolving drastically. Competitions are rising with each passing day. And to stand out in the crowd, it has become essential to take a stand in the world of business. And for doing it successfully, implementation of the latest technologies needs to be done carefully. One such technology is blockchain.
Several businesses, banks, industries, and a lot more are incorporating this technology. Ethereum is a part of the blockchain that needs to be prioritized as well. This article will deal with the Ethereum blockchain and the scalability challenges the network is facing.
What is Ethereum?
Ethereum is a distributed public blockchain network. The number of users of the Ethereum blockchain platform is increasing with each passing day. It contributes to the enterprise transactions by facilitating them with rule-based and automatic transfer of critical and valuable assets.
The ‘Smart Contract’ feature of Ethereum consists of all the business rules that govern the asset transfers. This particular feature makes Ethereum popular for enterprise applications because it has provided superior flexibility for its broad application.
The Blockchain network’s popularity has led to the execution of a huge number of transactions on the Ethereum public blockchain network. All these transactions began to test the network’s scalability limits.
The challenge of scalability:
The existence of a scalability limit is because of Ethereum mining’s inherent properties. It restrains the generation of blocks between 7 to 15 transactions each second. It is because each of the nodes needs to process each transaction that takes place within the network.
If this challenge is not solved, the congestion of transactions can make Ethereum users wait for a long time. To be prepared for the application of enterprise-class, the Ethereum network has to enhance the processing speed of its transactions on a large scale.
For resolving the issue with scalability, three powerful Ethereum crypto solutions are there. But every solution has its advantages and disadvantages, which one must consider before pointing at the scalability issues.
State channel: The operations that take place while the remaining of the operations are shifted from the off-chain are prioritized in this solution. After all the transactions are completed as off-chain, the only submission of proof to the actual chain is made.
Plasma: Plasma is considered to be another technique that follows off-chain scaling in Ethereum wallet development. It depends on the off-chain transactions taking place inside the child chain, having minimum interactions with the “true” chain.
Sharding: A chain state is divided into little partitions known as shards. And the entire process is known as sharding. In a shard, all the nodes need to process all the transactions that are originated in that particular shard. Therefore, to improve the overall throughput of the network, the nodes that need to process every transaction need to be reduced.
Comparison of the solutions:
As ‘state channel’ is all about conducting a majority of the operations off-chain, the state updates assume vital importance. One can configure the ‘challenge period’ attribute as a method that parties get the correct amount of time for confirming the final state.
Solutions associated with the plasma-based method rely on attaching child blockchains to the main blockchain. It is done to minimize the interaction with the main chain. The Ethereum development process implements balance and checks, keeping the possibility for all the parties to get out of the child chain in case any of the entities eventually gets full control of the chain. There exists one big challenge with Plasma. Here, all of the parties staying on the child chain try to exit at the same time. Although, address can be done by configuring the correct challenge period.
Indeed, the technique and methodology of making a solution that is solution-based are available. But the miners can face challenges to take over a shard. They also may find problems in facilitating cross-shard communication. But documented protocols are there for averting such issues at times when the implementation of sharding is done.
In short, there is an availability of realistic solutions to the scalability issues of Ethereum application development. Plasma and state channel individually or if combined offers multiple advantages, facilitates efficiencies, and there are some complexities as well while implementing it. Also, for resolving the Ethereum blockchain network’s scalability challenge, well-documented solutions can be implemented through sharding. Also, you can collaborate with a partner having the correct knowledge and expertise for converting all your efforts into business value fast.
A study on the three kinds of scalability solutions needs to be performed based on your particular situation before implementing any Ethereum blockchain solution or a combination of solutions for completely resolving the issue with scalability.
However, one cannot overstate the vital importance of Ethereum’s ultimate success in an organization. The detailed evaluation of the mentioned three solutions indicates a high chance of success if the correct option or combination of options is selected.