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Scalability is Blockchain’s Biggest Problem But it information about 980 ICOs

Can Be Resolved
Reuben Jackson 17 hours ago 3 min read 385 Views

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1275 VIEWS
Massive Drop of Bitcoin Might
Be Unrelated to ETF and SEC
1 day ago
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985 VIEWS
CNBC’s Brian Kelly: ‘Don’t Sell
Cryptocurrencies are continuing to become more mainstream. Crypto After Bitcoin ETF Delay’
15 hours ago
With each passing day, the number of daily Bitcoin transactions
inches upward. The problem is, we still haven’t found a way to 837 VIEWS
Microsoft Unveils New
Ethereum Blockchain-as-a-
solve the scalability problem. Service
21 hours ago

Why is Blockchain Scalability Such an Issue?

Top Coins by Market Cap
Cryptocurrencies were not initially designed with the idea of widespread use and
Bitcoin | BTC
adaptation in mind. As the number of daily transactions continues to rise, an increasing 1 -5.33%
$6,160.17 $105.97B
number of issues are popping up.
Ethereum | ETH
2 -10.44%
$324.650 $32.87B
Many crypto enthusiasts are holding onto the hope that cryptocurrencies will
eventually be able to compete with the likes of PayPal and Visa. However, as it stands, 3
XRP | XRP
-10.36%
$0.30470 $11.97B
we are far from it.
Bitcoin Cash | BCH
4 -7.47%
$558.479 $9.65B
Visa is currently the fastest measured payment network. It is capable of processing
approximately 24,000 payments per second. In comparison, PayPal can process EOS | EOS
5 -8.84%
$5.20481 $4.72B
approximately 193 transactions per second.

Stellar | XLM
6 -2.74%
Most cryptocurrencies are still lagging far behind. Ripple is the outlier and can process $0.21381 $4.01B

up to 1,500 transactions per second, suggesting that it is likely to have the potential to Litecoin | LTC
7 -9.19%
become a viable payment method in the future. $57.8765 $3.35B

Cardano | ADA
8 -6.7%
Meanwhile, Bitcoin and Ethereum are even further behind with transaction speeds of $0.11395 $2.95B

seven and 20 transactions per second, respectively. This issue severely inhibits the
Tether | USDT
9 +0.02%
likelihood of either becoming mainstream payment solutions in the future. $1.00563 $2.42B

TRON | TRX
The transaction speed for cryptocurrencies is determined by the time taken to add a 10
$0.02348 $1.54B
-7.55%

transaction to the block plus the time taken to reach consensus.

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Proof-of-Work (PoW) Vs. Proof-of-Stake (PoS)?

Latest News

As it stands, the two most popular mining protocols are Proof-of-Work (PoW) and Proof- ADOPTION STOS

of-Stake (PoS). tZERO Announces $270

Million Investment from GSR
Capital

However, there are signi cant issues with both of these protocols. For starters, the 8 hours ago

Bitcoin PoW protocol has incentivized a signi cant number of individuals and
BITCOIN PEOPLE OF BLOCKCHAIN
organizations to buy more hardware and build huge mining farms, despite the fact that TRADING

CNBC’s Brian Kelly: ‘Don’t Sell

Bitcoin is supposed to be the most decentralized blockchain. As a result, most of the Crypto After Bitcoin ETF Delay’

hashpower is now controlled by a very small number of organizations. 15 hours ago

ADOPTION
The PoS protocol is touted to have a small number of bene ts over PoW–for instance, Scalability is Blockchain’s
Biggest Problem But it Can Be
slightly lower computational power requirements, slightly lower power consumption
Resolved
and slightly faster transaction speeds–which explains why Ethereum decided to 17 hours ago

implement it as part of its Casper update. However, this protocol comes with its own
ADOPTION
issues.
Stablecoins 101 – The Who,
What, Why and How

With the PoS protocol, the more the user stakes, the higher chance they have of being 19 hours ago

the one to claim the block reward. This means that, once again, this system mainly
ADOPTION ETHEREUM
bene ts large organizations with large sums of money to stake. TECHNOLOGY

Microsoft Unveils New

Ethereum Blockchain-as-a-
Service
IOTW’s Proof-of-Assignment (PoA) Protocol 21 hours ago

In an attempt to solve these issues, IOTW has recently invented a new way of mining, CULTURE RIPPLE

Adobe Developer: Ripple

known as Proof-of-Assignment (PoA). This method will require signi cantly less Transaction Activity Down to
2016 Level
computational power than both PoW and PoS–so much so that even normal electrical
1 day ago
appliances will have the ability to mine IOTW coins without signi cantly increasing
their electricity usage. ANALYSIS BITCOIN

Massive Drop of Bitcoin Might

Be Unrelated to ETF and SEC
Potentially the most notable of all is the fact that the PoA protocol is signi cantly faster 1 day ago

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 ADOPTION ANALYSIS OPINION

It’s Not Them, It’s Us. 5

second, putting it way ahead of Bitcoin, Ethereum and most other major Reasons Why Crypto Has an
Image Problem
cryptocurrencies.
2 days ago

Their target is to reach 1M/tps, which would enable them to process even more ADOPTION TRADING

Making Crypto Trading a

transactions than Visa. Possibility for Everyone
2 days ago

Yet another bene t of the PoA protocol is that it is fully compatible with IoT devices, and
ADOPTION BITCOIN ETHEREUM
there is no risk of power or memory loss. This will be vital in the coming years,
Video App to Reward Users
considering the IoT industry is expected to grow signi cantly. with Bitcoin, Ethereum
2 days ago

Finally, for blockchain to become widely adopted, it is vital that it’s easy and convenient More News

to use.  For users to be able to mine IOTW coins, there is no added software that they
need to buy. They can simply just download the rmware and begin mining instantly.
Featured ICOs

In time, companies will even include the IOTW pre-installed in devices to make the Asobi Coin
process even easier. Distributed secondary content
platform

The Delegated Proof-of-Stake (DPoS) Protocol Metabase

Blockchain and smart op-codes
platform
Despite its name sounding very similar to Proof-of-Stake (PoS), DPoS is actually very
different. In this mechanism, token holders don’t actually vote on the validity of blocks Commitment to Transparency: Please click here to read
our ICO Database Disclaimer.
by themselves. Instead, they elect delegates to do it.

While PoW and PoS require miners to compete for blows, DPoS allows miners to
collaborate to make blocks. As a result, DPoS can run signi cantly faster than other
consensus mechanisms.

It currently takes approximately 10 minutes for a Bitcoin block to be mined. EOS, on the
other hand–one of the rst cryptocurrencies to implement the DPoS protocol, along
with Steemit and Bitshares–has an average block time of under one second.

This allows cheap transactions, enhances scalability and makes the process energy
ef cient. The main downside of this protocol is that it is partially centralized.

The Future of Blockchain Scalability

There have been many different proposed blockchain scaling solutions over the years–
from the likes of Segwit and block size increase to Sharding and Plasma. Each solution
has its pros and cons and there has been signi cant debate over which is the most
suitable.

However, one thing is for certain: to support the increased usage of cryptocurrencies, we
need to step up our efforts to nd a suitable scaling solution.

Whether the issue can be completely solved is yet to be seen but so far, the results are
looking promising.

Cover Photo by Aaron Sebastian on Unsplash

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AUTHOR

Reuben Jackson
Reuben is a blockchain security expert and a freelance writer living in New York along with his wife and
two adorable children. He writes about all things cryptocurrency and blockchain related and is a
passionate advocate for blockchain solutions.

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