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- Ethereum scaling is the maintenance of high transaction speed and transaction throughput.
- There are two scaling approaches to Ethereum: on-scaling and off-scaling.
- Validium is a layer 2 solution for Ethereum scalability.
Ethereum scaling is defined as the handling of a network to maintain high transaction speed and transaction throughput without compromising functionality concerning decentralization and security. Decentralization is the biggest challenge to Ethereum’s scalability because of the non-involvement of intermediaries. Validium is considered a very good option for solving the issue of Ethereum scalability.
Ethereum Scaling
Ethereum scalability refers to the ability of a network to accommodate large amounts of transactions without affecting decentralization or security. Scalability refers to transaction speed and transaction throughput (TPS, transactions per second). Scalability is a major issue in the cryptocurrency industry, as the speed of crypto transactions is not as fast as the speed of traditional currency payment methods. On average, Ethereum transactions are 15-30 per second. However, the condition of Bitcoin’s scalability is even worse than that of Ethereum because there are around 3-7 transactions per second. Hence, Bitcoin is considered more decentralized and secure than Ethereum.
The major challenge in Ethereum scaling is decentralization and many decentralized finance (DeFi) apps Ethereum follows the blockchain technology model for working. In blockchains, many nodes are present in the form of participants. All nodes must participate in the consensus process of the crypto coin. These nodes relay block the speed of transactions because validation work has to be done by all nodes and as a result of this, Ethereum has a low TPS rate.
Validium For Making Ethereum More Scalable
Validium is a layer-2 solution that can significantly increase transaction speeds, maintain security, and reduce costs. It streamlines blockchain performance without compromising on efficiency or security. Validium’s express lane to circumvent blockchain congestion includes:
- Batch transaction verification using Validium
Each transaction does not submit only summarized transaction data submitted to the main Ethereum blockchain batches.
- Zero-knowledge proofs
It is an advanced cryptography that validates transactions without revealing private details.
- Off-chain transaction processing
It moves transaction processing directly to the main Ethereum blockchain.
- Off-chain data storage using Validium
It stores transaction data off-chain with a separate provider, not on the blockchain.
Conclusion
The easiest way for developers to solve the issue of Ethereum scalability is to sacrifice security and decentralization. The decentralized nature of cryptocurrency work is affecting transaction speeds. There are many scaling approaches for Ethereum to solve this issue of increasing scalability, such as on-chain scaling and off-chain scaling. On-chain scaling involves the implementation of a mechanism known as sharding.
Sharding means involving or creating new chains to ease network congestion and boost transaction speed. Off-chain scaling is also known as the layer-2 solution, which includes rollups (execution of transactions outside the base layer), state channels (multisig contracts that allow users to transact faster), sidechains (running independent blockchains in parallel), plasma (separate blockchain that settles disputes), and validium (data is not stored on the base layer).
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