Ethereum transactions, 500 TPS thanks to ZkSnarks
Ethereum transactions, 500 TPS thanks to ZkSnarks
Blockchain

Ethereum transactions, 500 TPS thanks to ZkSnarks

By Marco Cavicchioli - 24 Sep 2018

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To solve the famous problem of scalability, Ethereum could soon integrate zk-SNARKs, an on chain solution developed on the Zcash blockchain.

It is a new form of zero-knowledge encryption, thanks to which all Zcash transactions are encrypted on the blockchain, even if they have not yet been verified.

With this type of encryption, the possession of certain information, such as private keys, can be demonstrated without revealing it and without any interaction between the parties.

These zero-knowledge demonstrations make it possible to prove between two parties that a statement is true, without revealing anything other than the validity of the statement itself.

Moreover, these transactions can be verified in a few milliseconds and can contain few hundred bytes of much more substantial instructions.

It is precisely for this reason that this solution could significantly increase the maximum number of transactions included in a block.

To solve the famous problem of scalability, Ethereum could soon integrate zk-SNARKs, an on chain solution developed on the Zcash blockchain.

It is a new form of zero-knowledge encryption, thanks to which all Zcash transactions are encrypted on the blockchain, even if they have not yet been verified.

With this type of encryption, the possession of certain information, such as private keys, can be demonstrated without revealing it and without any interaction between the parties.

These zero-knowledge demonstrations make it possible to prove between two parties that a statement is true, without revealing anything other than the validity of the statement itself. Moreover, these transactions can be verified in a few milliseconds and can contain few hundred bytes of much more substantial instructions.

It is precisely for this reason that this solution could significantly increase the maximum number of transactions included in a block.

In this regard, a few days ago Vitalik Buterin said that introducing this technology on Ethereum could potentially lead the network to validate about 500 transactions per second, compared to the current maximum of 20.

All this without having to resort to layer 2 solutions such as Plasma or Raiden. Everything will be done on-chain, ie keeping all the information stored on the blockchain.

To do this, it would be necessary to use a mass validation of transactions, thanks to a relayer node that performs the task of aggregating transactions in exchange for a commission.

According to Buterin’s calculations, the maximum number of transactions supported by Ethereum in this way could be multiplied by a factor of 24, while for ERC20 tokens even by 50.

The limit of this solution could be the required computational intensity, but it is likely that this technology will improve further in the future by requiring fewer resources.

However, Buterin has not revealed whether specific technical solutions are already being studied to allow the Ethereum network to adopt similar solutions.

All this without having to resort to layer 2 solutions such as Plasma or Raiden.

Everything will be done on-chain, ie keeping all the information stored on the blockchain.

To do this, it would be necessary to use a mass validation of transactions, thanks to a relayer node that performs the task of aggregating transactions in exchange for a commission.

According to Buterin’s calculations, the maximum number of transactions supported by Ethereum in this way could be multiplied by a factor of 24, while for ERC20 tokens even by 50.

The limit of this solution could be the required computational intensity, but it is likely that this technology will improve further in the future by requiring fewer resources.

However, Buterin has not revealed whether specific technical solutions are already being studied to allow the Ethereum network to adopt similar solutions.

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 11 thousand subscribers.

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