Could Ethereum’s transaction rate be heading to Visa levels?
by Manoj Sharma for CNR
Ethereum researchers Harry R, Yondon Fu, and Philippe Castonguay, Alex Gluchowski and Barry Whitehat have recently introduced a new initiative, an off-chain solution called Snark-based side chain. It might just be a crucial one, too. It will allow users to transfer tokens and ETH outside of the Ethereum mainnet, which means, before the release of a channel composed of thousands of transactions made between users on the Ethereum network, users can request withdrawals at the smart contract level.
Apparently, the solution could scale the network to 17,000 transactions per second, almost equivalent to the transaction capacity of Visa. And that would be a huge breakthrough for cryptocurrency and blockchain, with transactions per second a huge factor currently holding both back.
The researchers explain that “the operator is forced to process requests in the priority queue. Otherwise, they are slashed. If they refuse to operate the snark side of the system, they are still forced to allow priority queue exists. Therefore, the system will degrade to an on-chain token if the operator becomes malicious”.
A few weeks ago, Vitalik Buterin, the co-creator of Ethereum, announced that by using a method of cryptography called ZK-Snarks, the Ethereum blockchain network could scale to 500 transactions per second. A part of ZK-snarks allows large chunks of data to be compressed into what is called a “succinct proof”, which remains the same size, irrespective of the amount of input.
Since scalability is considered one of the big challenges facing Ethereum, the Snark-based chain solution might just be a notable breakthrough. We await further developments with interest…