Since Blockchain’s debut in 2009 it has faced a broad band of criticism from both crypto enthusiasts and those outside the cryptocurrency community. Scalability and governance disputes continue to be hot topics within the blockchain technology space. Some argue that these kinks are keeping blockchain from breaking into the mainstream market.
The most vivid issue is, of course, scalability, which refers to blockchain’s ability to grow. With a maximum block size of 1MB, the Bitcoin Blockchain, for example, doesn’t have the capacity to hold or process sufficient amounts of data to bring blockchain technology into the mainstream market. In order for blockchain technology to become more widely-used it needs to increase its capacity and transaction speed.
Cypherium, a team of talented developers with backgrounds at Amazon, Microsoft, and Google, aims to address these main issues using some technological advances developed. The first is combining two consensus mechanisms – Cypherium is interweaving strengths of Proof-of-Work and Practical Byzantine Fault Tolerance consensus mechanisms to build a hybrid blockchain.
By leveraging PoW’s efficiency with PBFT’s reliability, Cypherium in fact creates blockchain, which is as functional as the Bitcoin one, and has the scalability of a PBFT-based blockchain. This blockchain is believed to theoretically be able to process thousands of transactions per second, unlike any other currently existing distributed ledger.
The other part of Cypherium’s solution to scalability and governance disputes is their multi-level governance, which separates the application protocol from the main one. In such a way it allows main protocol operate without getting congested by information of application protocol, thus, increasing speed.
In addition, according to recently published press-release, Cypherium partnered with bloXroute Labs to jointly address scalability issue. The partnership between these two companies will give Cypherium a solution to their scalability bugbear and bloXroute Labs, in their turn, will have the chance to expand by providing scalability to one more blockchain.
Speaking about the potential of an announced partnerhip bloXroute Lab’s Chief Scientist, Emin Gün Sirer, said:
“We are very excited to reveal bloXroute, a scalable substrate that is designed to bring on-chain scalability to all blockchains. Cypherium is a great example of a cutting-edge blockchain, and we look forward to using bloXroute to push their scalability boundary to tens of thousands transactions per second.”
The increased transaction capacity and larger block sizes partially permit lower transaction fees. With transaction fees on the Bitcoin blockchain as high as $7 at the time of writing, it’s simply not conducive to cryptocurrency’s use for small daily purchases. Cypherium is producing the technology, which is strongly needed to not only introduce the cryptocurrency to non-tech community, but to make it a usable commodity on a daily basis as well.
While there are other companies in the crypto world addressing scalability concerns, most options presented rely more on centralized methods – but, as we all know, the idea behind blockchain technology is decentralization first of all. Being a truly decentralized blockchain, Cypherium’s protocol can be changed by a two-thirds vote. Apart from other things, adjustments can be made in the block size, transaction fee and stack depth.
Altogether, Cypherium’s consensus mechanism aims to provide improved transaction speed, scalability and true decentralization – quite an ambitious project, which, in case of success, would definitely shake up the whole crypto industry.