Using AI-Enhanced DPOS (Delegated Proof of Stake) To Improve Cryptocurrency Transaction Rate

Could AI be the difference maker as crypto looks to compete with mainstream digital payments giants such as Visa and PayPal?

Aubrey Hansen
Jun 19, 2019 · 3 min read
Image source: Shutterstock

The popularity of cryptocurrencies continues to rise, thanks to the ideological benefits they offer. Not only does the blockchain technology that powers cryptocurrencies cut out the need for third-party traditional banks, but allows transactions to occur in an entirely transparent and traceable manner. However, the number of transactions that blockchains can process at one time has been much less than other digital payment methods such as Visa or PayPal.

The use of AI-enhanced DPOS (Delegated Proof of Stake) technology may have permanently resolved this discrepancy.

Artificial-Intuition DPOS uses self-learning neural nodes to recognize patterns of data. Its complex algorithms are continually evolving to promote maximum efficiency on the network. Because of this, cryptocurrencies such as Bitcoin may have finally solved its scalability problem, allowing it to handle the load of everyday use.

How The Blockchain Stacked Up Before AI-Enhanced DPOS

Image source: Pixabay

One of the significant drawbacks of cryptocurrencies was their relatively low transaction rate. Because of the limited size of a block of transactions and the amount of time required to create one, Bitcoin could only process seven transactions per second (tps).

This was significantly lower than other digital payment methods. For example, PayPal — another popular form of electronic funds transfer — can process 193 transactions per second. Visa, on the other hand, boasts 24,000 tps. It soon became apparent to users of Bitcoin and other cryptocurrencies that this issue of scalability would have to be addressed if crypto was to compete with these other payment models.

How AI-Enhanced DPOS Changed The Game

Since its conception, blockchain designers have struggled to find a way to increase the number of transactions that it can handle. Some models included recording data off the blockchain, while others sought to create channels between users. Each of these prototypes offered particular security concerns.

Because of the optimization algorithms of AIDPOS, the blockchain can now process 30,000 transactions per second without sacrificing security or changing the nature of the blockchain. Not only can cryptocurrency match Visa in processing terms, but it can actually exceed it.

How AI-Enhanced DPOS Works

Image source: Pixabay

AIDPOS can adapt the network conditions without requiring a change in coding or output criteria. It allows for a dynamic block formation process that is dependent on network load. If there are a lot of transactions occurring, AIDPOS can produce a new block quickly, or allow it to take longer during less intense periods.

Special neural nodes can measure and adjust block time, block size, and adjust the parameters to increase transactions per second. Whereas a Bitcoin block typically took ten minutes to be formed, AIDPOS can create a new block to be verified in seconds.

The Future Of The Blockchain Is Promising

By being able to solve one of the most vexing limitations of the blockchain, Artificial-Intuition Delegated Proof of Stake technology has secured a long and profitable existence for cryptocurrencies. The blockchain can now stand toe-to-toe with other forms of digital payment like Visa and PayPal.

Chalk another victory up for AI.

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Aubrey Hansen

Written by

Fell down the rabbit hole two years ago. Time to write about it.

The Capital

A publishing platform for professionals in business, finance, and tech

Aubrey Hansen

Written by

Fell down the rabbit hole two years ago. Time to write about it.

The Capital

A publishing platform for professionals in business, finance, and tech

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