1.
OMM Solutions
TECHtalk #7
27.09.2017 < OMM Solutions GmbH > 1
www.tech-talks.eu

2.
Einmal im Monat ist TECHtalk Zeit! First come first served!
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3.
Talk: Scaling Blockchain Transaction
Are 1000000 Transactions / second really possible?
Speaker: Olaf Horstmann
3< OMM Solutions GmbH >

4.
e.g. every ~10minutes for a Bitcoin-transaction
A transaction on the blockchain takes time X to “finalize”
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Block
1
Block
2
Block
3
Block
n
…
$ / i
Hash from last block
$ / i
• verifies Transactions
• “builds” Block
27.09.2017

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.
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?
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$ / i
27.09.2017

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.
Sidechains with 6-10 tps each
Option 2
How can we improve the performance?
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Chain A Chain B Chain C Chain D Chain …
27.09.2017

9.
Payment Channels
Option 3
How can we improve the performance?
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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.
Payment Channels can also work across multiple parties
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0.1 BTC
0.1 BTC
0.1 BTC
27.09.2017

11.
Payment Channels could result in an internet-like structure
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Mesh-Network Few Main-Nodes / “Internet of Money”
Amazon
Shell
Random “Big” Node
27.09.2017

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.
• 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?
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14.
But there is not „that one solution“
Scaling is possible!
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15.
Vielen Dank für Eure Aufmerksamkeit!
15< OMM Solutions GmbH >

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< 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
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