Vitalik Buterin, the co-founder of Etherium holds some serious clout in the blockchain space, so when he tweeted last week about a new project that he’s looking forward to going live, peoples heads started to turn. You know when Vitalik endorses a project it must be good.
Blockchain projects are often pretty ephemeral and don’t last past the hype but the thing that has Vitalik and many others excited about is the idea behind the project, . It brings potential for blockchain and cryptocurrency to scale and be widely accepted and woven into our daily lives.
Undoubtedly, a scalable version of blockchains like Etheruem would make Vitalik’s dream one step closer to fruition. Not only are the current systems complex, they often don’t work well together, and no efficient solution has been created … until now.
The Ethereum co-founder’s tweet has led to a slew of interest in the project which is making rapid ground on their mission to become the ‘trustless version of Paypal’. The founders of Liquidity.Network, Arthur Gervais, a Blockchain professor at Imperial College, London and Rami Khalil are working to solve the major scalability issues faced by many blockchains, starting with Ethereum that have thus far been unanswered.
The Current Issues With Blockchain Scalability
Blockchain has astounding potential to revolutionize the way we live and operate on a daily basis. But even with all of that potential, the technology is being held back by some barriers that need to be resolved.
Current blockchains, such as Bitcoin and Ethereum, can only process ten’s of transactions per second. Other mainstream payment process systems such as VISA or Mastercard on the other hand are able to process thousands of transactions per second. Time, as we all know, is money. And the slow process time is stalling blockchain’s progress.
Secondly, a big problem that is currently faced in the blockchain space is the high transaction fees that are attached even to very small payments. High transaction fees make micropayments in cryptocurrency unworkable and can also make promotional activities like ‘airdrops’ an expensive exercise.