2017 was a time when the crypto world was embroiled in a fierce scaling debate. Bitcoin was struggling to process more than 4-7 transactions per second, and everyone had a different idea on how to solve the issue. Even Ethereum was feeling the heat, with congestion caused by smart contracts causing significant headaches. Transaction times on the Bitcoin blockchain could take hours, and the only solution was to pay hefty fees even for small transactions. Ethereum wasn't faring much better either. Thankfully, there were alternatives that offered solutions. Litecoin, for example, was already around in 2011, boasting transaction speeds four times faster than Bitcoin. Ambitious altcoins like Fastcoin even advertised a Litecoin clone with 12-second blocks, which would have been impressive if achieved in a decentralized fashion. But then Qtum - an interesting project that debuted right in the thick of the scaling debate. They offered a refreshing dose of common sense and source code without any fuss. By the UTXO model of Bitcoin with Ethereum's EVM, they built a protocol that gave you the best of both worlds. This unique approach allowed Qtum to make some intriguing innovations that set it apart from its competitors. By blending the security and stability of Bitcoin's blockchain with the smart contract capabilities of Ethereum, Qtum opened up a world of new possibilities for developers and users alike. came combining Qtum’s scalability features for transaction speeds Integrating Segregated Witness (SegWit) In an effort to improve its blockchain's efficiency and security, Qtum has recently integrated Segregated Witness (SegWit) into its solution. SegWit is a protocol upgrade that was first introduced for Bitcoin in 2017, and it essentially separates transaction signatures from the transaction data, allowing for more efficient use of block space. By integrating SegWit into their blockchain, Qtum is able to increase the number of transactions that can be processed per block, which in turn improves the overall speed and scalability of the network. Additionally, SegWit reduces the risk of transaction malleability and enhances the security of the blockchain. Onchain scaling with EVM Qtum has leveraged the Ethereum Virtual Machine (EVM) to allow for blocks as large as 8,000 kilobytes - a significant increase from the previous limit of 2,000 kilobytes. This is a strategic one for Qtum, as it allows the blockchain to handle a higher volume of transactions per second while maintaining the same level of security and decentralisation. By increasing the block size, Qtum is able to process more transactions per block, which translates to faster transaction times and lower fees for users. move But the implementation of on-chain scaling has its challenges. Larger blocks can lead to longer validation times for nodes on the network, potentially causing bottlenecks and reducing the overall efficiency of the blockchain. However, the Qtum team has taken steps to mitigate these risks by optimizing their node software and implementing measures to prevent spam attacks. Overall, Qtum's decision to implement on-chain scaling using the EVM is a bold move that demonstrates its commitment to improving the scalability and usability of its blockchain. As the crypto industry continues to grow and evolve, it will be interesting to see how other projects respond to this new approach to on-chain scaling. L2 technology and microtransactions Qtum has recognized the importance of microtransactions and has taken steps to address this issue by implementing layer-2 technology like the Lightning Network. The Lightning Network is a layer-2 solution built on top of blockchain technology that enables near-instant and feeless microtransactions. By integrating the Lightning Network into its blockchain, Qtum is able to offer its users a more seamless and efficient experience when it comes to conducting microtransactions. This is particularly important for use cases like gaming or online marketplaces, where small transactions may be made frequently. The Lightning Network works by creating a network of payment channels between users, allowing them to transact off-chain and settle their balances on-chain only when necessary. This significantly reduces the number of transactions that need to be processed on the main blockchain, resulting in faster and cheaper transactions. Fastlane Fork and the  Decentralized Governance Protocol (DGP)  achieved further scalability Qtum made significant strides in improving its blockchain's transaction speed and cost efficiency through the deployment of the 2021 Qtum "Fast Lane" fork. This upgrade reduced the block spacing time from 128 seconds to just 32 seconds, significantly improving the blockchain's transaction processing capacity. As a result, Qtum could now process over 1,000 transactions per second, which was a substantial increase from its previous capacity. Additionally, the cost of processing transactions on the Qtum blockchain became much more affordable, with transaction fees hovering around three pennies per transaction. Qtum's Decentralized Governance Protocol (DGP) is a groundbreaking set of smart contracts that has revolutionized the way blockchain networks can achieve elastic scalability and gas fee management. With DGP, Qtum users can dynamically adjust the block size of the network, allowing for faster transaction processing times during periods of high demand. This innovation is particularly important because it allows the Qtum blockchain to scale and adapts to changing network conditions without compromising on security or decentralization. By enabling users to manage gas fees more effectively and adjust the block size as needed, DGP makes it easier for businesses and developers to build on the Qtum platform while ensuring that the network remains efficient and secure. What's more, DGP is fully decentralized, meaning that decisions about network upgrades and changes are made by the community of users, rather than a centralized authority. This approach ensures that the network remains democratic and transparent, with everyone having a say in the future development of the platform. Conclusion: Qtum makes transaction speed painless Qtum's commitment to innovation and pushing the boundaries of what is possible with blockchain technology has resulted in the creation of a powerful protocol that can easily handle 1,000 transactions per second on a fully decentralized layer 1 blockchain. This is an impressive feat, considering the limitations that many other blockchain networks face when it comes to scalability and speed. What's more, Qtum's integration of the lightning network has the potential to take its transaction throughput to even greater heights, with theoretical capacities in the millions of transactions per second. This level of scalability is unparalleled in the industry and could potentially revolutionize the way that businesses and individuals transact with each other. One of the most interesting aspects of is its use of Proof-of-Stake, a consensus algorithm that is much more energy-efficient than Proof-of-Work. This was a conscious decision on the part of the Qtum team, who wanted to create a blockchain that was both environmentally sustainable and highly performant. Qtum's approach Overall, the combination of scalability, speed, and sustainability makes Qtum a highly attractive platform for businesses and developers looking to build decentralized applications. As the industry continues to evolve, we can expect to see even more exciting innovations from Qtum that will further cement its position as a leading player in the blockchain space..

Qtum – How Many Transactions Per Second?

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

From CEX to DEX: The Shifting Landscape of Crypto Exchanges

06/09/2018: Biggest Stories in the Cryptosphere

06/02/2018: Biggest Stories in the Cryptosphere

05/02/2018: Biggest Stories in the Cryptosphere

0 to Pro Crypto Trader: Your Ultimate Guide to Bitcoin and Altcoin Investing

07/02/2018: Biggest Stories in the Cryptosphere

From CEX to DEX: The Shifting Landscape of Crypto Exchanges

06/09/2018: Biggest Stories in the Cryptosphere

06/02/2018: Biggest Stories in the Cryptosphere

05/02/2018: Biggest Stories in the Cryptosphere

0 to Pro Crypto Trader: Your Ultimate Guide to Bitcoin and Altcoin Investing

07/02/2018: Biggest Stories in the Cryptosphere

Light-Mode

Classic

Newspaper

Minty

Dark-Mode

Neon Noir

Minty

HN StartUps