Co-founder of Ethereum, Vitalik Buterin claims that Ethereum will soon hit 1 million transactions per second. He said this during an OmiseGO AMA meet. He said that the second layers of the Sharding and Plasma projects are going to make Ethereum capable of processing up to a million transactions per second. Also, it has the potential to process over 100 million transactions per second.
The Problem of Scalability in the Blockchain Industry
On several occasions, Buterin has made his concern about the scalability issues facing the Ethereum blockchain clear. During an interview in 2017 with venture capital, Buterin said that Ethereum and Bitcoin can only perform 3 to 6 transactions in a second even when they are working at peak capacity.
He said that the blockchain would need to be capable of processing millions of transactions per minute if is to support large-scale networks like Visa, Nasdaq, and the Internet of Things.
In his words:
“Currently, Bitcoin can process about three transactions every second. Processing four transactions per second would require full capacity. Ethereum is capable of handling five and six would mean working at peak capacity. However, a service like Uber performs about 12 transactions per second, and Visa records thousands of transactions per second while PayPal records hundreds of transactions per second.”
In this recent interview, Buterin says that the developers are currently testing the second-layer of the new scaling solutions on the testnet. Ethereum may be capable of supporting large-scale decentralized apps.
The Sharding protocol was created to split Ethereum’s blockchain network into shards. The shards will subsequently be equipped with nodes tasked with the duty of processing information on specific shards. All nodes on the Ethereum blockchain will not be required to process every single piece of data.
Plasma will enable the processing of micropayments as it will create small networks within the original blockchain for faster processing of information.
Buterin believes that the combination of layer one and layer two of the scaling solutions will improve Ethereum’s capacity by 10,000x.