Blockchain scalability problem

Regarding the problem of scalability of Blockchain as a decentralized and cryptographically secure database is one of the new technologies; that will undoubtedly have a great impact on the future of the digital world. But with an increasing impact comes an increasing number of users; and there a great problem occurs.

Most of the currently known blocking networks are not made for many users; and I mean many users. Let’s take a look at the most famous Blockchain system, Bitcoin. The size of a block, which determines the amount of data that can be stored, is limited to 1MB.

The cryptocurrencies, the data stored in cryptocurrency block chains; They are transaction data. A block has to be generated and then validated by the network, and this takes time. Therefore, there is only a limited number of transactions ; that can be done for a certain period of time.

But as all this technology attracts more and more participants; the time to handle such transactions increases. This is called the problem of scalability; a solution had to be found, and the IOTA did find it.

IOTA and Tangle

The IOTA foundation had a pretty good idea, the so-called Tangle system. Therefore, they used their knowledge of a subject of mathematics called Theory of Graphics.

We have blocks of information; each block contains certain data and is connected to the previous block through a hash value calculated cryptographically.

What can be understood is that the Acíclico Graph Directed in mathematics; For the purpose of understanding all this it is sufficient to know that a graph is only a set of vertices and edges. Directed means that the edge, which connects two vertices; it goes from one vertex to the other.

In the Tangle system, each transaction is represented by a vertex; this means that if someone is in the process of transferring some funds from the IOTA , it generates a transaction; which then becomes a vertex of the graph.

The key now is that each transaction has to approve at least two other transactions; In terms of mathematics this means that each vertex has to be connected by directing the edges towards at least two other vertices. It is said that a transaction is indirectly approved by another transaction; if there is a connection between these two transactions with at least one transaction between them.

Therefore, instead of storing transactions in blocks of limited size; Each transaction lives on its own and has to approve other transactions. With this method, the number of transactions; which can be handled in a certain period of time, increases with the number of transactions!

Read the full Article

You might also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. AcceptRead More

Did you know?

Buy in without the stress of trying to time the market

when you setup a savings plan. If you haven’t started a plan yet, head to your Bitpanda account to get started!

Purchasing cryptocurrencies comes with a number of risks.
Never invest money that you can't afford to lose.

You can automatically invest

in IOTA with Bitpanda Savings!