As the number of daily transactions continues to rise, an increasing number of issues are popping up.
In comparison, PayPal can process approximately 193 transactions per second.
Ripple is the outlier and can process up to 1,500 transactions per second, suggesting that it is likely to have the potential to become a viable payment method in the future.
The transaction speed for cryptocurrencies is determined by the time taken to add a transaction to the block plus the time taken to reach consensus.
For starters, the Bitcoin PoW protocol has incentivized a significant number of individuals and organizations to buy more hardware and build huge mining farms, despite the fact that Bitcoin is supposed to be the most decentralized blockchain.
The PoS protocol is touted to have a small number of benefits over PoW-for instance, slightly lower computational power requirements, slightly lower power consumption and slightly faster transaction speeds-which explains why Ethereum decided to implement it as part of its Casper update.
Potentially the most notable of all is the fact that the PoA protocol is significantly faster than both PoW and PoS, making it a potential solution for the current scalability problems facing the blockchain.
PoA can already process thousands of transactions per second, putting it way ahead of Bitcoin, Ethereum and most other major cryptocurrencies.
Their target is to reach 1M/tps, which would enable them to process even more transactions than Visa.
This allows cheap transactions, enhances scalability and makes the process energy efficient.
Scalability is Blockchain's Biggest Problem But it Can Be Resolved
Published on Aug 10, 2018
by Cryptoslate | Published on Coinage
Crypto Exchange Coinbase Open-Sources Its Security Scaling Tool
U.S.-based cryptocurrency exchange Coinbase is making a recently developed automated security scaling tool available to the public.
World's Largest Crypto Exchange Binance Looking to Add New Stablecoins
Binance, the world's largest cryptocurrency exchange by adjusted volume, is actively looking to list more stablecoins in addition to the three it already supports, which include the recently beleaguered tether.
Judge Orders Trading Firm, CEO to Pay $2.5 Million in Bitcoin Ponzi Case
The Commodity Futures Trading Commission has won a legal battle against a New York resident and his company for running a Ponzi scheme centered around bitcoin.
Are Mastercard and VISA Cutting Out Unregulated Crypto Brokers and ICOs?
On October 12, Finance Magnates reported that payment giants Mastercard and VISA will both soon group cryptocurrency and Initial Coin Offering jurisdictions in a new "High risk" category.