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Scaling Blockchain Transaction Are 1000000 Transactions / second really possible?

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OMM TECHtalk #7
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Scaling Blockchain Transaction Are 1000000 Transactions / second really possible?

  1. 1. OMM Solutions TECHtalk #7 27.09.2017 < OMM Solutions GmbH > 1 www.tech-talks.eu
  2. 2. Einmal im Monat ist TECHtalk Zeit! First come first served! < OMM Solutions GmbH > 2
  3. 3. Talk: Scaling Blockchain Transaction Are 1000000 Transactions / second really possible? Speaker: Olaf Horstmann 3< OMM Solutions GmbH >
  4. 4. e.g. every ~10minutes for a Bitcoin-transaction A transaction on the blockchain takes time X to “finalize” < OMM Solutions GmbH > 4 Block 1 Block 2 Block 3 Block n … $ / i Hash from last block $ / i • verifies Transactions • “builds” Block 27.09.2017
  5. 5. • VISA • average of 2000 tps • capable of 56 ktps • PayPal • average of 150-200 tps • Alipay • record of 1.05billion transactions in a single day • peak of 120ktps • Bitcoin • max: 3-6 tps • Ethereum • max: 5-10 tps • in comparison: Uber does 12 rides per second Blockchains don’t really compare to payment processors yet < OMM Solutions GmbH > 5 tps = Transactions per Second [1] https://usa.visa.com/dam/VCOM/download/corporate/media/visa-fact-sheet-Jun2015.pdf [2] https://web.archive.org/web/20141226073503/https://www.paypal-media.com/about [3] https://www.techinasia.com/alibaba-alipay-1-billion-transactions 27.09.2017
  6. 6. Every transaction is broadcast to the whole network • Huge amount of data if everyone has 100% of the transaction-data • Bitcoin Blockchain already >160GB • Some delay until everyone received the information Why do Blockchains perform so poorly? < OMM Solutions GmbH > 6 $ / i 27.09.2017
  7. 7. Database-based Service • Third-party service like PayPal or VISA • Everyone transfers their money to the service and can then execute transaction to other members of the service Option 1 How can we improve the performance? < OMM Solutions GmbH > 727.09.2017
  8. 8. Sidechains with 6-10 tps each Option 2 How can we improve the performance? < OMM Solutions GmbH > 8 Chain A Chain B Chain C Chain D Chain … 27.09.2017
  9. 9. Payment Channels Option 3 How can we improve the performance? < OMM Solutions GmbH > 9 Alice transfers 1 BTC 1 BTC refund after 30 days (or any other time) Bob creates channel with Refund-Confirmation “Shared Account” (Multisig) 1 BTC 0.9 BTC 0.1 BTC after TX #1after TX #2 0.6 BTC 0.4 BTC 27.09.2017
  10. 10. Payment Channels can also work across multiple parties < OMM Solutions GmbH > 10 0.1 BTC 0.1 BTC 0.1 BTC 27.09.2017
  11. 11. Payment Channels could result in an internet-like structure < OMM Solutions GmbH > 11 Mesh-Network Few Main-Nodes / “Internet of Money” Amazon Shell Random “Big” Node 27.09.2017
  12. 12. • SQL Database • Very scalable, very fast • Off chain transactions already offered by some services (e.g. Coinbase) • Sidechains • Scaling through many(hundreds) smaller blockchains with each chain having a limit of 6-10 tps • Payment Channels • (almost) Unlimited payments between two parties Options and their benefits How can we improve the performance? < OMM Solutions GmbH > 1227.09.2017
  13. 13. • SQL Database • Need to trust a third party • Service can be hacked • Sidechains • Transactions between two chains require two transactions • Payment Channels • Requires a “channel” to be opened prior to a transaction • at 6tps, this would result in only ~200mio channels / year • Only helps if there is more than one transaction between two parties Options and their drawbacks and risks How can we improve the performance? < OMM Solutions GmbH > 1327.09.2017
  14. 14. But there is not „that one solution“ Scaling is possible! 14< OMM Solutions GmbH >27.09.2017
  15. 15. Vielen Dank für Eure Aufmerksamkeit! 15< OMM Solutions GmbH >
  16. 16. Ihr persönlicher Ansprechpartner Fragen oder Interesse? < OMM Solutions GmbH > 16 Olaf Horstmann Technology & Innovation OMM Solutions GmbH Vor dem Lauch 4 70567 Stuttgart Germany oh@omm-solutions.de +49 (0)711 75 86 46 04
  17. 17. 17< OMM Solutions GmbH > www.omm-solutions.de OMM Solutions GmbH Vor dem Lauch 4 70567 Stuttgart Geschäftsführer Martin Allmendinger Malte Horstmann Olaf Horstmann Kontakt Telefon: +49 711 6747 051-0 E-Mail: info@omm-solutions.de Umsatzsteuer-ID: DE295716572 Sitz der Gesellschaft: Stuttgart Amtsgericht Stuttgart, HRB 749562 Impressum Icons Icons made by Freepik from www.flaticon.com Icons made by Madebyoliver from www.flaticon.com

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