Ethereum parallel transaction speed could solve the network’s scalability issues, enabling faster transaction processing without compromising security. However, it has had trouble with scalability, which means that it hasn’t been able to handle many transactions without losing security or independence. Ethereum’s original blockchain setup required each transaction to finish before starting the next, making the network slow, especially when demand is high.
Sei, a blockchain community for DeFi apps, developed a new way to make Ethereum bigger. Sei says Ethereum could speed up transaction processing by doing about 65% of deals simultaneously. With this change, Ethereum can now handle millions of transactions per second (TPS), a huge step forward for scalability. This piece talks about how this made-up change might affect Ethereum’s future and why running transactions in parallel might help it become more scalable.
Ethereum’s Current Scalability Issues
Ethereum’s scalability issues are well-known. DeFi, NFTs, and other decentralized applications have hampered Ethereum, especially when transaction volume surpasses capacity. Ethereum 1.0 sequentially handles transactions. Transactions may be delayed, speeds slowed, and prices raised as demand rises. PoW was energy-intensive; thus, Ethereum’s PoS consensus technique replaced it. This update has made Ethereum more secure and sustainable, but scalability remains challenging. Ethereum still has high gas costs and peak demand congestion despite scaling solutions like Layer-2 protocols (Optimism and Arbitrum).
Parallel Transactions for Ethereum
The concept that Sei proposes, which involves processing transactions in parallel, could be the solution that Ethereum is seeking. Sei asserts that modifying Ethereum’s architecture to handle simultaneous transactions would enable the cryptocurrency to process many more transactions per second. Ethereum processes transactions sequentially, examining and authorizing each one before proceeding to the next. Ethereum processes transactions in this manner. Through the use of parallel processing, Ethereum would be able to execute several transactions at the same time, which would result in an overall increase in its speed.
According to Sei’s concept, over 65 per cent of Ethereum’s transactions can occur simultaneously without compromising the network’s decentralization or security. This is a significant milestone as it expands Ethereum’s capacity to meet the ever-increasing demand from independent applications and commercial use cases. If Ethereum were to include parallel processing, it would be able to achieve a much greater transactions-per-second (TPS) pace. Considering that other blockchain systems, such as Solana and Avalanche, are designed to be scalable, this might make it more competitive with similar systems.
Sei’s Ethereum Scalability Solution
Parallel transaction processing is old. Parallelism helps blockchain and HPC. Subtasks are run simultaneously in traditional parallel processing. Blockchain uses batch verification for parallel transactions. This would need major Ethereum protocol modifications. Ethereum nodes should perform several transactions instead of waiting. Increase network data transmission and transaction verification. For simultaneous token transfers, smart contract executions, and other transactions, Sei recommends Ethereum aggregate transactions. This would boost Ethereum’s throughput while preserving security and decentralization.
Ethereum DeFi Scalability Solution
Parallel transactions may affect Ethereum. First, this change would considerably reduce network congestion. Faster transactions will promote Ethereum’s DeFi apps. DeFi applications like liquidity provisioning, borrowing, and lending need rapid transactions. Ethereum developers and users seek quicker processing to save money and confirm faster. Ethereum’s blockchain competitiveness would surge. Blockchain needs scalability, as Layer-2 solutions Arbitrum and Optimism demonstrate. Ethereum’s parallel transaction processing may make it the greatest blockchain platform for DeFi, NFTs, and other decentralized applications.
Related: Ethereum Price Prediction: Will ETH Reach $5,000 Soon in 2024
Summary
Sei suggested that Ethereum parallel transaction speed could speed up the processing of transactions by running about 65% of them in parallel. This could completely change how the network handles demand. Parallel processing is a big help for scaling so that Ethereum can handle millions of transactions every second. There are some technical problems to solve, but it’s straightforward to see how this could help Ethereum’s environment. Ethereum could become the best blockchain for the decentralized future if it had faster transaction speeds, lower fees, and better performance for decentralized apps. The ability to handle transactions in parallel could significantly contribute to Ethereum’s growth and adaptability as it evolves.
