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Scalability will Reveal XRP as the Premier International Digital Asset


Hodor
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Excellent article that made your points very clear.....as usual I don't have any knowlege to contribute but did find a typo....   you spoke of the thread of spam rather than the threat.  Don't know if you can edit it now or not, but thought I would mention it.

 

Thanks for laying it all out so clearly.

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Ripple has introduced the idea that PayChan has some kind of technical limit, around 50-70k tps, to make a catchier headline for their new scalability features. And that's a pity, because 50k tps is still not impressive at all for the feature's intended usage: high frequency (micro)payments.

However, transaction capacity over PayChan is not limited by anything else than the speed at which the third parties can sign and process the off ledger PayChan transactions. That could be 50k per second, or that could be a million per second. Only when channels are created and closed there will be a connection with the ledger. So it is more fair to say that PayChan allows for unlimited scalability, at least not limited by Ripple technology.

PayChan is lighting network in production.

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I'm not familiar with this, but here are some links with claims and more info ..... Not sure what this is exactly "off-chain state networks"

"According to the Raiden website, the new technology permits leveraging off-chain state networks to extend Ethereum with scalability to more than 1,000,000 transfers per second, near-instant transactions with very low fees, confidentiality, interoperability with other Ethereum applications and support for micropayments." - https://bitcoinmagazine.com/articles/lightning-fast-raiden-network-coming-to-ethereum-blockchains-1471030245/

"Scalable: it scales linearly with the number of participants (1,000,000+ transfers per second possible) .....

Instead of sending all transactions immediately to the blockchain (which is the main scalability bottleneck), the Raiden Network lets users privately exchange signed transfer agreements and secure deposits. Raiden nodes, implemented as an extension to Ethereum with a simple API, talk to each other for off-chain transfers and use the Ethereum blockchain to manage deposits and settlements.

Hees hopes to demonstrate, perhaps in only a few weeks, that the Raiden Network can scale to as much as 100,000 transactions per second. Since the system can allow transactions as small as a millionth of a dollar, Hees hopes that it will find applications for the IoT, as well as for machine-to-machine and application-to-API transactions." - http://raiden.network

Edited by Luschka
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Tech-savvy Zerpers, any cause for concern over Ethereum's Raiden Network?

Assuming they can scale on par with Ripple's Paychan, will they have a clear use case? and are they actively seeking to abide by the rules and regulations of global governing entities? Thanks in advance for your insights :)

 

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14 hours ago, lucky said:

However, transaction capacity over PayChan is not limited by anything else than the speed at which the third parties can sign and process the off ledger PayChan transactions. That could be 50k per second, or that could be a million per second. Only when channels are created and closed there will be a connection with the ledger. So it is more fair to say that PayChan allows for unlimited scalability, at least not limited by Ripple technology.

PayChan is lighting network in production

I :heart: this comment!

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1 hour ago, JTxrPP said:

will be able to

I think this gets at the key difference between a lot of the other cryptos, ICOs, and XRP.  There's a lot of white papers and software that "will be able" to do a lot of incredible things, but the market advantage is clearly with the ones that can do it now.  Not only that, but banks and FI's don't just look at one metric such as TPS.  It's a package deal.  Code governance, liquidity, market adoption, proven solution, all those things.

These are all things that Ripple not only does well, but they do the best.  And they have a ~ 5 year head start.

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43 minutes ago, JTxrPP said:

Tech-savvy Zerpers, any cause for concern over Ethereum's Raiden Network?

Assuming they can scale on par with Ripple's Paychan, will they have a clear use case? and are they actively seeking to abide by the rules and regulations of global governing entities? Thanks in advance for your insights :)

 

As far as I know Raiden is still constrained by Ethereum's limitations. While parallel network to Ethereum's main its anchor points, DApps and I believe exchange (maybe?) run on Ethereum. I could be wrong, but this would mean while the network is fast and can  potential scale there are still restrictions to the total settlement time.

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Hey, overall I liked this article :).

It's important to bring attention to scaling as its not the first thing on everyone's mind when they invest in projects. But if the goal of a project is to reach mainstream adoption, then it has to be able to scale to handle much, much more than anything we see in the crypto space today. And nothing scales better than XRP, as far as I know, when it comes to speed, fees, throughput and storage requirements.

In the discussion of block size you brought up the point "A validator node doesn’t have to have a history of all transactions". I'm disappointed that you left it at that! In my opinion, this is such a huge deal and will be the reason why XRP will succeed over traditional blockchains in the long run. Not only is this the reason why XRP does scale, but its also the reason why Bitcoin, Ethereum, and every other blockchain doesn't scale!

Blockchains grow in size quadratically by the number of users (as each user can send transactions to each other user). Bigger blocks accelerate this growth. Small blocks with payment channels and lightning networks ease this growth, but transactions still need to be settled on-chain. And it doesn't change the fact that the growth still worse than linear. Not to mention lightning networks have their own problems (funds locked up, DDOS-able nodes, centralisation of hub nodes).

On the other hand, XRP grows linearly, since a ledger contains just a single value and not a history. And once a person opens a ledger, that's it. All that changes is the value of the ledger, nothing more will ever be stored. Other cryptocurrencies, however, will need to then store all of the future transactions done by that person! When we have billions of people using a cryptocurrency, that will be many billions of transactions per day added to the network! With the Kryder rate having maxed out in the early 2000's and getting worse every year, blockchains will be growing faster than hardware can keep up!

The only way I can see this not being a problem is if sharding is solved and better off-chain solutions than lightning are invented. But sharding is a complex problem - the smaller the shards the less secure they are; the larger the shards and well, you still have the same problem.

The only reason why XRP doesn't have this problem is because it is the only protocol where nodes are trusted to put the right values into the ledger, instead of the network being purely trustless. I guess the saying "a little trust goes a long way" applies here, because it allows you to make something that will actually work at a global scale.

If I'm wrong about anything that I've said I would love someone to tell me, because its the main reason why I've invested as much as I have into XRP. It's the main reason why I look at every single other cryptocurrency on coinmarketcap.com and think "meh, it won't scale".

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