Blockchain phase 2: Will it scale?

As blockchain grows in popularity, so does the conundrum of how to scale it while maintaining or boosting performance so it can compete with today's transaction networks.

More than one organization has been working on solving a major blockchain conundrum: how to improve sluggish transaction performance.

Blockchain distributed ledgers work by linking together a chain of electronic records, each inextricably tied to the one before it; each new set of entries or "blocks" is completed and time-stamped with a hashtag only after passing through a consensus process on a peer-to-peer (P2P) network.

Due to its chain nature, each new record inserted into a blockchain has to be serialized, which means – as the blockchain grows – the rate of updates is slower than traditional databases that can update data in parallel.

Today, the world's most popular cryptocurrency ledgers – bitcoin and Ethereum – use a proof of work (PoW) consensus model that requires nodes (servers) to complete a complicated mathematical problem as a way of authenticating new blocks (similar to how CAPTCHA acts as a challenge/response mechanism for websites confirming human users).

To continue reading this article register now

9 steps to lock down corporate browsers
Shop Tech Products at Amazon