What solution to blockchain scalability?
This is one of the biggest challenges for blockchain and crypto - a major barrier that the whole community can solve. Without a solution, even the heads of the largest exchanges in the world find it difficult to gain broad acceptance.
Scalability has always been a thorn in this new industry, because it is still quite young and has not made significant contributions to the world economy. From a fundamental perspective, it involves whether a blockchain network is capable of providing a high-speed and consistent quality experience for users - regardless of the number of users who are online at the same time. point.
Users and businesses need to know whether or not they can trust a network anytime, anywhere, and having this right before the platform goes live is important. In 2018, according to a PwC survey of 600 regulators, a huge 84% of organizations involved in blockchain technology in aspects such as research and development, are implementing the technology. or put into use.
A bad experience at any time of this journey does not cause much disaster. Companies sipping their pain after investing in blockchain failed to meet expectations and were reluctant to test again. Users are disappointed in the slow transaction speed but then there is not much incentive to switch to other more powerful tools on the market.
One of the biggest challenges in scalability is that it is difficult to reach a consensus in solving the problem. Bitcoin (BTC), the world 's dominant digital currency, once fell. Even in 2017, transaction traffic was congested by increased user demand - and as a result, transaction fees increased or users had to wait for days to be completed.
When a crypto pro group wants to solve the problem by increasing the blockchain size in an on-chain way of expanding, another group chooses to expand by increasing the number of off-chains. This led to the creation of the Lightning Network platform, an additional layer designed to make payments faster and cheaper. At least in the case of BTC this is a direction. Before that layer was added, the BTC network could only handle 7 transactions per second (TPS), but when the Lightning Network was available, the speed increased to 10,000 TPS and was accompanied by lower fees and instant transactions. time.
You may think this is the ideal solution to the problem of long-term expansion, but the low utilization rate actually means that the operational nodes are losing money when the transaction is processed. This raises a complaint that BTC is facing an internal crisis, not only in the sense that the solution is not considered.
When e-commerce came in
Of course, seven transactions per second can be eliminated for fast-paced e-commerce. In the real world, like operating a cafe with only 7 tables and up to 200 customers waiting for seats. A prime example is Visa, an intermediary that processes large payments of over 24,000 transactions per second. Although facing the costs that companies pay when using Visa payment, it is difficult for these companies to refuse such a stable and preferred system by customers to another system only. handled 3,400 times less. It's like changing from a crowded cafe with many tables to a kiosk where no one is sitting.
Nor can it be said that this problem cannot be solved. Some businesses have integrated crypto into their platforms despite their scalability issues, and have begun to accept cryptocurrencies as a means of payment. The motive for this is quite diverse. Some are tempted by attracting new customers by giving them the opportunity to own a unique property, others are steadfast at increasing transaction processing speed and limiting the pain. Waiting for days to return money to the account. Others are too bored with cash handling, not to mention the cost of depending on existing financial institutions in the market.
Crypto is commercial
Cryptocurrency companies like ABBC are at the forefront of offering a customized blockchain platform for businesses and customers, providing a seamless experience of using digital currencies when shopping online. According to the company, older networks that increase the block size or increase the frequency of the block simply cannot be removed - at least because it will raise security holes or other problems.
ABBC believes that the crypto sector needs to have uniform quality - if not better quality - than other legal payment channels. In the end, it must use a consensus protocol called DpoS. The method of approving these transactions is built on a reputable system and voting in real time in accepting or rejecting transactions.
ABBC estimates the platform can process around 5,000 transactions per second - a capacity known as "only increasing over time" and is considered the "fastest blockchain system in the world". This scalability is complemented by a "leading security" multi-currency e-wallet with instant messaging, a hypermarket where cryptocurrency enthusiasts have access to a multitude of major brands along with one place, traded for low fees, high performance, and with lots of high liquidity trading pairs.