Vitalik Buterin: Ethereum network will handle 1 million transactions per second

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Vitalik Buterin, the creator of the Ethereum project, promised that with the help of such blockchain solutions as Sharding and Plasma, the Ethereum network will be able to handle 1 million transactions per second.

In the OmiseGO AMA session, Vitalik Buterin explained that the Sharding and Plasma technologies developed by experts, aimed at solving the scalability problems of the Ethereum network, will allow processing of 1 million transactions per second in the project’s blockchain system. In addition, potentially there is an opportunity to increase the number of processed transactions to 100 million per second.

Recall that in September last year, during an interview with venture investor Naval Ravikant, which was organized during the Disrupt SF 2017 conference, Vitalik Buterin noted that currently, under peak load conditions, the Bitcoin and Ethereum networks can process about 3-6 transactions per second. The programmer added that in order to maintain the operation of large payment systems such as Visa, stock exchanges like Nasdaq, and IoT networks (Internet of things), it is necessary to provide the ability to process hundreds of thousands of transactions per second.

The technology of sharding assumes the separation of the blockchain into segments, for which a certain group of nodes is defined, aimed at processing information of a specific number of transactions. Sharding allows you to optimize the functioning of the network by eliminating the need to handle all the data in the block.

Plasma’s solution resembles the principle of the Lightning Network, a technology developed for the Bitcoin network. Plasma will allow the Ethereum network to process micropayments outside the main lock-up – creating third-party networks will also have a positive impact on the security of the main Ethereum blockchain system. According to Buterin, using these two technologies will allow Ethereum network to process millions of transactions per second.