The creator of Ethereum, Vitalik Buterin, has claimed that the network will eventually be able to process upwards of a million transactions per second.
This will happen with second-layer solutions such as Sharding and Plasma, he said during a OmiseGO AMA session, allowing Ethereum to scale in ways other blockchain networks are currently not able to.
Speaking of the technology, he said: “If you have a Sharding solution, the Sharding solution itself might increase the scalability of Ethereum by a factor of 100, or eventually even more. But then, if you do Plasma on top of the scalability solution, then what that means is, you’re not just doing 100 times of the amount of activity but you are doing 100 times the amount of entrances, the amount of exits, and despite resolutions.”
Sharding splits a blockchain network into pieces (or shards) and gives them a group of nodes that can process information of particular shards. Plasma, meanwhile, enables Ethereum to process micropayments with child networks within larger ones.
“Bitcoin is currently processing a bit less than three transactions per second and if it goes close to four, it is already at peak capacity,” Buterin continued. “Ethereum has been doing five per second and if it goes above six, then it is also at peak capacity.
“On the other hand, Uber on average does 12 rides per second, PayPal several hundred, Visa several thousand, major stock exchanges tens of thousands, and in IoT, you’re talking hundreds of thousands per second.”