In 2017, the cryptocurrency market experienced explosive growth, and blockchain technology became a major topic of conversation. One of the biggest challenges facing blockchain trading platforms today is scalability. Singapore-based tech company Zilliqa has introduced sharding technology, aiming to revolutionize how blockchains operate—differing significantly from traditional payment giants like Visa.
Currently, Bitcoin and Ethereum can handle no more than seven transactions per second, while Visa processes over 8,000 transactions per second. This stark contrast highlights the limitations of existing blockchain networks, making it difficult for them to compete with established payment systems.
Worse still, older blockchains such as Bitcoin and Ethereum struggle to scale effectively as their user base grows. As more people join the crypto space, competition for transaction inclusion intensifies. Users are forced to pay higher fees to have their transactions processed faster, while miners prioritize blocks that offer greater rewards.
Zilliqa, led by CEO Dong Xinshu, is working to change this dynamic. The team, composed of researchers from the National University of Singapore, has been developing innovative solutions since 2015. Their vision is now becoming a reality as they prepare to launch their platform.
Zilliqa's architecture is similar to Ethereum’s but structured differently. It aims to achieve high throughput and scalability without additional costs. The key idea is that as the network grows, so does its capacity to process transactions. More miners mean more processing power, which directly boosts performance.
In traditional blockchains, all miners compete to solve a single problem, with only one winner receiving the reward. This model leads to massive energy waste, as 99% of computing power goes unused. Zilliqa’s sharding approach changes this by dividing tasks into smaller, manageable parts. Instead of 8,000 miners solving one problem, they’re split into groups of 800, each tackling a different part of the same task. This transforms competition into collaboration, improving efficiency.
As the network expands, the difficulty of mining doesn’t increase; instead, more shards are created. This allows more miners to participate, increasing transaction volume. Additionally, the same amount of energy can process more transactions, making the system more eco-friendly. Transaction costs drop significantly, while miners maintain their earnings.
Recently, Zilliqa successfully passed Amazon’s internal test network, achieving over 2,488 transactions per second—more than 100 times that of Bitcoin and Ethereum. This is just the beginning. If Ethereum’s 22,000 miners were to work on Zilliqa, it could support around 15,000 transactions per second—more than double what Visa handles.
However, sharding isn’t without risks. Security concerns remain, as hackers could target individual shards rather than the entire network. Despite these challenges, the potential for blockchain to scale and become a global financial backbone is growing.
In conclusion, if a solid and robust blockchain infrastructure can be built, there’s a real opportunity to challenge companies like Visa and Mastercard. Blockchain could one day serve as the foundation of the global economy, reshaping how we think about money and value transfer.
SC/PC Fiber Optic Fast Connector
Sc/Pc Fiber Optic Fast Connector,Fast Fiber Connector Kit,Quick Connect Fiber Connectors,Sc Quick Connector
Ningbo Fengwei Communication Technology Co., Ltd , https://www.fengweicommunication.com