By ICO Alert
- Ethereum is currently able to process five transactions per second
- Visa uses cloud computing to scale the thousands of transactions
The people have spoken: big businesses ought to put their ledgers on the blockchain for accountability. Yet there is one question remaining on the idea of this solution. Does blockchain have the scalability to support the nation’s transactions?
Why This Matters: With the world of blockchain abuzz, technology enthusiasts are pushing for the decentralization of financial institutions. Companies like Visa (V -0.69%) use cloud computing to scale tens of thousands of daily transactions. While this is fast, it’s not yet as secure as blockchain, this is because cloud computing carries severe privacy risks. Handing over sensitive information to a third party can be messy.
For perspective, let’s reference some statistics that Vitalik Buterin, co-founder of Ethereum shared with AngelList; the crypto currency is currently able to process five transactions per second, compared to Bitcoin’s average of three. If we look at a national comparison, Visa processes 24,000 transactions per second.
“Unfortunately, existing blockchain applications are far from satisfying the scalability requirements to compete with centralized systems. Current mainstream payment processors, such as Visa, support orders of magnitude higher peak transaction throughput and incurs much lower latency compared to the operational Bitcoin platform,” said Adem Efe Gencer, Cornell University PhD.
Situational Awareness: According to The Upwork Skills Index, blockchain development ranks second of the 20 fastest growing job skills. With every new developer that enters the blockchain space, potential grows for an innovative system to solve growth in transaction time, scalability and much more.
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