As cryptocurrencies continue to garner positive public perception, projects are looking to crack the quest for the most scalable cryptocurrencies. Scalability will be a key component of mass adoption of blockchain. So which cryptocurrencies are winning the race to scale up their operations? Check out this post to find out our top picks.
What exactly is scalability in cryptocurrencies?
Scaling means adding more transactions to a network while maintaining optimal levels of performance.
Not quite! There needs to be a fine balance between scalability, stability and security. To improve all three concurrently is proving to be very difficult.
That being said, the following platforms are good examples of the those pushing the envelope of the most scalable cryptocurrencies.
According to Ripple, the digital asset used in the company’s cross-border payment system, XRP, consistently handles 1,500 transactions per second (TPS), 24×7, and can scale to handle the same throughput as Visa.
Unlike most other cryptocurrencies in this post Ripple doesn’t have a blockchain. This lack of a blockchain has drew fire towards Ripple as not being a cryptocurrency at all.
Added to a lack of blockchain, Ripple is also centralised which is contrary to the historically philosophical underpinnings of crypto. However, there’s no doubt it is scalable to take on challenges in its core markets.
A transaction on the Stellar network consists of one or more operations. Payments, offers and fees are all examples of operations that could make up a single transaction.
Depending on hardware and network configurations, a conservative estimate of Stellar’s processing rate is 1000 operations per second.
With potential purported TPS being much higher, it’s a great example of a highly scalable cryptocurrency.
Zilliqa is a high-throughput blockchain platform that achieves over 2,828 transactions per second in its testnet by the implementation of sharding.
Sharding involves the breaking down of large data sets into smaller chunks, The chunks are then processed individually and regrouped into the original set.
Zilliqa is designed so that the throughput scales almost linearly as the number of nodes scales
This altcoin therefore books a place in our 5 most scalable cryptocurrencies.
When we consider the scalability of blockchain networks, TPS is perhaps the most significant parameter.
QuarkChain estimates that its network will have the capacity to process 1 million TPS once it goes live.
Comparative to Bitcoin and Ethereum this is over x1000 faster.
A notable mention should also go to EOS.
Launched in June 2018, EOS has been well known for its mainnet speed. When EOS was launched, it was called the ‘Ethereum Killer’
When it crossed 3,000 TPS, it was a big news. Firstly, it became the fastest mainnet and it was the first time Visa TPS was eclipsed.
However, with EOS and scalability, all is not well and this brings us back to the earlier point about the balance between scalability, stability and security. It’s a good example of the challenges in the space.
It’s becoming apparent that by how EOS are optimising speed the reliability and security of the project could be in question.
They are adding a new block every half a second. This has meant that the EOS chain is now over 42 million blocks (4TB of total data in just eight months of operation). Compare this to Bitcoin’s blockchain, which is at 200GB after ten years, and Ethereum’s, which is 150GB after three months.
Corey Miller, an executive at BlockTower Capital, highlighted the scaling issue:
The example of EOS and scalability highlights the challenges that will need to be overcome when mass adoption of cryptocurrencies takes place in digital currency space.
That’s our round up of the 5 most scalable cryptocurrencies. If you liked this post, please give it a share on your favourite social media channel using the buttons below.