Ethereum should be scaled to 100,000 TPS (Transactions Per Second) to stay active and healthy on the cryptocurrency scene.
Ethereum developers are continuously working hard on the upgrades which will enable the Ethereum 2.0 transformation.
Vitalik’s comments on Ethereum’s three most critical problems
The answer to this great dream lies under the works of the Ethereum network developers. We have to also keep in mind that the current TPS rate is 15.
Scalable blockchains as data layers | Vitalik Buterin (Source: Taipei Ethereum Meetup)
Vitalik Buterin points out that Ethereum requires these TPS levels to compete in the cryptocurrency arena. Mr Buterin has mentioned his thoughts on the three development targets during an interview with Abra CEO, Bill Barhydt.
As far as the big problems, my top three at this point are probably scalability, privacy and usability. So scalability – the Ethereum blockchain right now can process 15 transactions per second. Really, we need 100,000.
How do Ethereum developers work on the scalability problem?
Buterin continued his speech by explaining the details of the hard work which is being performed by the Ethereum network developers:
There are two major kinds of strategies that we’re working on for scalability. One is layer-one scaling and the other is layer-two scaling… And our solution to this, called sharding, basically means that you split up the different transactions to randomly selected, different groups of computers… And that can increase scalability by maybe a factor of 1,000 or so, but then potentially even more, much later down the road.
While Ethereum developers are mainly focusing on the Ethereum 2.0 transformation process, they are also working on the integration of the Casper protocol.
Last but not least, the above updates will contribute to the Ethereum’s POS (Proof of Stake) consensus.