New Year 2020 has made its rocking start with the world going crazy as it is the start of a new exciting decade opening new doors to success and achievements. For the crypto industry, the past decade had been quite exciting as Bitcoin gained popularity and acceptance from the industrial domain. The currency enjoyed its share of ups and downs but managed to survive successfully. The current year marks the 11th anniversary year of Bitcoin and is likely to bring in some major transformations in the digital currency sector.
Where the big industry leaders are placing their bets on the crypto arena, Bitcoin itself is facing an ever-challenging problem of scalability. In simple words, the Bitcoin scalability issue points out towards the limited rate of transactions the Bitcoin network can process per second successfully. This is because the size and frequency of the blocks in the Bitcoin blockchain are of limited capacity. Interestingly, Bitcoin was designed to cater to the requirements of a particular sector. The blockchain was capable of managing a certain volume of transactions in the past, but as the coin gained popularity and the volume of transactions increased manifold times, the scalability issues started surfacing up.
The Issues Related to Bitcoin Scalability
- Slow Processing- The Bitcoin transactions are operated and managed completely over the Bitcoin blockchain. The transactions are stored in the blocks which are connected to each other through the science of cryptography. As mentioned above, these blocks have a limited frequency and size, which limits their processing power. The size of a block is 1 megabyte and it takes 10 minutes to add a new block to the system.
This implies that every 10 minutes, the Bitcoin blockchain can process only 1 megabyte worth of transactions, which is quite low in comparison to other leading payment settlements systems like Paypal and Visa. Bitcoin only manages to perform a maximum of 7 transactions per second.
- Cost Increment- Due to the slow processing speed, more and more unconfirmed transactions pile up in the blockchain network. As a result, the user has to pay a hefty amount of fee to the network, making the transactions quite costly.
How bloXroute solves scalability issues?
With a view to solving the Bitcoin scalability issues, a dedicated team of professionals designed bloXroute which works as a leading Blockchain Distribution Network that helps to propagate blocks at a faster speed. The platform uses the networking layer to solve the scalability issue. It works as a provably neutral network which implies that the bloXroute platform restrains anyone from discriminating between the users on the basis of various sectors. As all the transactions entering the bloXroute are encrypted, there can be any discrimination on the basis of the content in the network. All the peers are connected to each other through a P2P network, which gives them a chance to relay their encrypted blocks via peer nodes and make the system powerless.
Another lucrative feature offered by the bloXroute network is the manner in which it propagates information on a blockchain. The network propagates transactions among blockchain nodes which allow categorizing the transactions with shorter IDs. bloXroute moves data through an efficient network infrastructure, which allows thousands of on-chain transactions to get processed per second.
The architecture infused in bloXroute is unique in multiple ways. The bloXroute allows blockchain nodes to access the system through a magic gateway or an open-source code channelized at a blockchain node that allows transmission of transactions and blocks to and fro from the nearby servers. The gateway resides on the same device where the blockchain process takes place, thereby reducing the size of the data transmitted.
bloXroute integrates with top blockchain networks
When bloXroute was launched, it focused its area of operation to Bitcoin and Ethereum networks. However, as the platform’s main aim is to scale all leading blockchain networks, it deployed an array of blockchains in October 2019 to strengthen its operations in Europe, China, and Korea.
The network collaborated with renowned blockchain projects named Ontology, Conflux, Metadium, and Quorum. The team stated that they are in talks with the integration of several other prominent decentralized networks as well. bloXroute also announced the infusion of new consensus protocols like Verifiable Random Function, Verifiable Byzantine Fault Tolerant, and Directed Acyclic Graph.