Every successful startup at one point or another faces a turning point in its history. This turning point, whether a challenge, conflict, or opportunity, oftentimes becomes the defining moment for the startup’s leadership team. How will they respond? What steps need to be taken? What is the game plan to get from point A to point B? These questions are vital, and investors and board members demand answers.
Blockchain technology, though not a startup in the traditional sense, is at its turning point. Prices are at or near all time highs, trading volumes are soaring, and the number of cryptocurrency users is growing at a tremendous rate. But these statistics don’t tell the full story.
With cryptocurrency prices rising and transaction volumes hitting peaks, the Achilles’ heel of Blockchains, scalability, is back with a vengeance. The problem essentially boils down to block size--blocks that are too big are automatically rejected by the network. As a result, transactions per second are limited to single digit numbers, or double digit numbers if the Blockchain is really fast.
The problem is that this pales in comparison with traditional payment methods like Visa cards. If cryptocurrencies want to compete in the transaction world in a substantive way, something needs to be done.
Sensing this need, some companies are working on customizable operating systems that will establish commercial-scale platforms. The goal is to meet growing business demand through Blockchain technology, as well as provide a central hub for all Blockchains. The hope is that platform operating systems will lay groundwork for the development of new, scalable applications, and organizations like EOS, Grid, DASH, and Waves are aiming to do just that.
How Blockchain operating systems can address the scalability problem
By creating a multi-chain parallel processing infrastructure that fulfills certain requirements, companies could pave the way for greater Blockchain commercialization. The operating systems they are working on are comprised of a main chain and an indefinite number of side chains, allowing a platform to fulfil multiple goals while reducing data redundancy.