StellarX shares its "big filter" on why ICO tokens on Ethereum Blockchain are not ideal



Stellar X: The Blockchain of Ethereum considered for the wrong reasons?

A recent post published by [StellarX revealed that blockchain companies and startups could replicate at the Ethereum blockchain for the wrong reasons. were conducted and a "scale app" was launched to test the Ethereum network for almost half a day.

The team Stellar X has argued that the true nature of Ethereum is to support "autonomous organizations and app without owner." In short, if a company believes in decentralization and elimination of a central figure, then the Ethereum blockchain is appropriate. An example of Augur was given as an appropriate use case, as "they need a fully automated system, without owner to make truths about real world events."

So, according to the Their findings, companies that consider Ethereum either by issuing a token, initiating trade among users or doing it to reduce costs, are doing everything wrong.

Test results?

After conducting the tests, which were based on Kik's third-party load test to evaluate the performance of Ethereum, two problems occurred.

Inefficient methods to accept transactions

According to the allegations made, miners do not prioritize transactions based on waiting time, but rely on each account. Random assignment is the method in which the miners function, which ultimately results in greater line up and ridiculous waiting times.

To back up this argument, the team looked at two numbers: nonce transaction and nonce account. The nonce transaction is responsible for putting the transactions in order and the nonce account determines when it is checked out. The entire decision-making process is performed as follows:

  • If nonce transaction <account nonce, ignore transaction
  • If nonce transaction> nonce account, late transaction
  • If nonce transaction = account nonce , the transaction moves on the block
  • The above discoveries were born, as the team tried to use Kik's load specifications of "480 accounts each with an average of 1 txn / minute for 3 hours." To further assess the time required for Ethereum's blockchain to convert block transactions, the Stellar X team used the standard gas estimates of the ETH Gas Station, resulting in more than 13 hours of waiting, with most transactions still pending.

    A dubbed line chart, "Txns sent from a single account", showed that as the number of transactions per order increased, the time needed to adjust them also increased. This long waiting time can also hinder the user's experience on his respective platform, which is important to consider.

    Increased user cost increase

    According to Stellar X, "Ethereum app user costs increase rapidly adds users," concluding that it is the only reason for the price spikes they are present using the "network through many accounts".

    This result was an accident, but definitely worth watching. While the previous problem was detected due to a limited number of accounts that sent many transactions, this second problem was detected when many accounts (for a total of 28,800) sent a transaction. It turns out that the average confirmation time was 23 minutes, which was much more than the previous test, noting that the initial transactions were not confirmed until the end of the list.

    Long line ups were not considered the problem, but rather the increase in taxes on miners who forced forced transactions with pre-test "standard" prices, with priority given to the rest. It could be assumed that with the increase in the number of users, the cost would have a negative effect, this seems to be the opposite with Ethereum.

    A dubbed chart, "Cost of Transaction by Order Submitted", showed that for each transaction submitted, the cost continued to rise. It is supposed to cost the team $ 1,445 for an hour to conduct the test, which only supported 8 transactions per second (TPS).

    The Ethereum TPS was compared to that of PayPal, where the latter is able to confirm 240 TPS. Given that PayPal was built on Ethereum, it is supposed to see a commission of $ 380 million, as per results

    Final Considerations

    Clearly, it is evident that the gradually creeping transaction fees of Ethereum and the long waiting times are a result of unrealistic use of the platform. The co-founder of Ethereum, Vitalik Buterin, has also been quoted by Stellar X, and is as follows:

    "If you want to build a decent Uber and a Lyft on top of an undisputed ethereal, you're screwed." Full Stop. "[19659005] This only shows that most of the problems encountered by Ethereum is nothing more than an inappropriate guide provided to blockchain startups that come back to the platform to begin with. Ultimately, using it for "ownerless and decentralization" purposes is ideal, while all other purposes will only create more problems for the blockchain and its users.

    What are your thoughts on the results presented above? Are you convinced of what is slowing down the Ethereum blockchain? Share under

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