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29 May 2023
Blockchain Transaction Speed Remains an Issue
Limited transaction bandwidth has been a concern and a perceived shortcoming of some blockchain technologies since the dawn of the Bitcoin blockchain in 2008. Developers at several blockchain networks have worked to improve things recently, as the technology starts being consideered for use as a Web3 distributed-data storage mechanism.
Transaction throughputs can still vary due to factors such as consensus mechanisms, network design, and scalability solutions. A few blockchains focusing on improving transaction rates include:
* Ethereum 2.0, which has has made the conversion from Proof-of-Work to Proof-of-Stake and introduced sharding, as promised.
* Binance Smart Chain (BSC): BSC is a blockchain platform developed by the cryptocurrency exchange Binance. It utilizes a Proof of Staked Authority (PoSA) consensus mechanism and achieves higher transaction throughput compared to the Ethereum network.
* Solana: Solana is a high-performance blockchain designed for decentralized applications and crypto projects. It uses a unique proof-of-history (PoH) consensus combined with a proof-of-stake (PoS) mechanism, enabling high transaction throughput.
* Cardano: Cardano is a blockchain platform that aims to provide a secure and scalable infrastructure for the development of decentralized applications. It utilizes a proof-of-stake (PoS) consensus mechanism and employs a layered architecture to enhance scalability.
Which blockchains have you considered? Feel free to contact IDCA with your thoughts.
Image from Investopedia.
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