The speed of transactions on the most popular public blockchains does has an impact on startups. Indeed, transaction speed is at the center of concerns about the scalability of blockchains like Bitcoin and Ethereum.
In Bitcoin, each block is a maximum of 1 MB and will always take about 10 minutes to be mined, as specified in the Bitcoin white paper. The expected block time in Ethereum is much quicker, 10-19 seconds. That’s mainly because its block sizes are much smaller – currently around 20-30kb.
Regardless of their differences, block mining in both Bitcoin and Ethereum is a stable mechanism and doesn’t typically deviate from the expected times.
On average Bitcoin processes about 7 transactions per second, which makes it pretty slow compared to Ethereum and Ripple (the fastest major cryptocurrency, at 1,500 per second). Visa does 24,000 transactions per second.
Why the variance? It comes down to two main factors:
Normally you can expect to pay a fee of around $3. But when the network gets very busy, the fees go up. This happened in December, during the bull run. Media reported an average transaction fee of $50 during this period.
This volatility in transaction time makes it difficult for Bitcoin to be used as a payment mechanism.
However, Bitcoin’s developer community has come up with two solutions to this problem:
As for Lightning Network, without getting too complicated, it enables transactions to happen ”off chain” and the end result added to the blockchain later. This requires trusted nodes, so it’s not as decentralized as confirming transactions directly on Bitcoin’s blockchain. It’s still an experimental technology.
By separating signature and transactional data, SegWit reduces the “weight” of transactions, which creates more room in any given block. This does not increase the network’s block size limit, but it does increase the volume of possible transactions.
The Ethereum blockchain can only do roughly 15 transactions per second. But while block time is fairly consistent, when there are a lot of transactions to process it can lead to long queues.
In December of 2017, the CryptoKities craze reached a peak and clogged up the Ethereum network, the queues were 20,000- 25,000 transactions. Even now Etherscan shows an average queue of around 15,000-20,000 transactions.
Like Bitcoin’s developers, Ethereum is also exploring off-chain solutions. One is called Raiden, which is Ethereum’s version of Bitcoin’s Lightning Network. Another off-chain solution being developed is Plasma, which uses “a series of smart contracts to create hierarchical trees of sidechains”.
‘Sharding’ draws from a traditional scaling technique called ‘database sharding’, which effectively breaks a database into pieces and puts each part on a different server.
CSE still inherits the Lighting Network technology, allowing off-chain processing systems in many cases.
Lessons learned from Bitcoin and Ethereum, CSE utilizes hyperthreading technologies, making the super-fast processing unprecedented.
This planning is like the waiting line and the door system at the airport. If the number of transactions increases dramatically, the system automatically opens more channels and opens more doors to ensure the maximum number of transactions per thread. Maximum queue at CSE is 100 transactions.
Quantum Supernode is involved in microprocessors in each transaction. MasterNode: Professional support services, similar to aviation support services:
CSE’s Masternode also has a special service that handles large contracts such as the lease of private airplan,…