Review of the NKB group: Ethereum, VeChain, Waves, NEO Development underway

NKB Group, a full-service investment bank focused on cryptographic assets and blockchain technology, recently released its review of DLT (Distributed Ledger Technology) platforms. NKB's new market report found that factors that "hold back" business use cases and the "mass adoption" of blockchain include their governance models, "economic characteristics" and the type of technological framework they use.

The cryptological journal has criticized the Ethereum platform for not having a "normative level" that "facilitates the creation of fraud schemes". To comply with regulatory guidelines, blockchain-based platforms such as NEO and VeChain use "centralized validation", an approach that is often criticized by peer-to-peer (P2P) supporters.

Second / third generation Blockchains

The NKB review also found that the most recent, or so-called second generation, cryptocurrency platforms such as EOS, IOTA and Hedera Hashgraph (a "less technically constrained" DLT-based cryptography network) may be able to scale effective. However, they could be subject to centralization and security compromises.

One of the main factors that determine the success of a platform is if it has an active and "supportive" community, according to NKB. Their article mentions that the Waves platform, which has recently reported that over 1 million of its multi-currency portfolios have been created, has a good community that actively contributes to its continued development.

"Sustainable" Internet connection 1 GB for validators

According to NKB, the scalability of a blockchain-based network, in particular the number of transactions it can process during a given period of time, is determined by the consent protocol, hardware technology, and the Internet connection used by full-node validators.

The investment bank's research paper explains that a "one gigabyte" (1 GB) sustainable connection would be needed to process 400,000 transactions per second (TPS), provided all other operational requirements are met. In particular, an Internet connection of this strength is only available in some OECD countries, including the United Kingdom, the United States, Luxembourg and other highly developed nations.

The NKB report also notes that the Ethereum blockchain could potentially process over 50,000 TPS while the EOS and Cardano networks could potentially handle over 1000 TPS. At the moment, the Ethereum blockchain is settling only 14 TPS and Cardano (testnet) and EOS are processing less than 100 and less than 199 respectively.

Tezos, recursive SNARKs

To help re-dimension existing blockchains, Tezos project developers (a platform designed to address governance problems with DLT networks), particularly Arthur Breitman, have recommended that chain validation be done through recursive SNARKs.

Currently, the Zcash platform uses zk-SNARKs technology to "protect transaction privacy" – which is something that Ethereum co-founder Vitalik Buterin has recently reviewed because he believes it can help the Ethereum blockchain scale to 500 TPS.

Other blockchain scalability approaches being worked on include Lightning Network (LN), Ethereum & # 39; s Sharding & Plasma, and Ethereum Raiden, the NKB notes.

As mentioned, security issues and vulnerabilities such as 51% attacks, implementation of appropriate governance systems, roadmaps and level of community involvement or participation are all documented for the following projects: Ethereum, EOS, Cardano, Waves, NEO, NXT, VeChain and Lisk.