How does Skycoin solve scalability problems?
The project is very interesting, but I must say there's another one with
very strong tech, which was also being developed for 4 years, the one which had DAG first actually, but then abandoned it due to its scalability problems. I'm talking about Radix (formerly eMunie), which is coming out this year. They already have made their first private deployment live in one of the 2017 YCombinator startups. Not a pilot, trial, but a real product.
If you haven't heard about it, you should have to, because it will really be a game changer, not Byteball or IOTA.
I'm always looking for interesting tech and my top 2 are Radix and Skycoin
please answer.
Also, whats the load on skycoin, in terms of how many transactions a sec? It states 40x faster than bitcoin, can we go faster? If so, when and how?
Bitcoin can handle 6 transactions per second
Ethereum can handle 30 transactions per second
Skycoin can handle +300 transactions per second.
The bottleneck is the signature verification. We can only verify so many secp256k1 signatures per second on an ARM board, before the nodes cannot keep up with the network.
The problem with these DAG, Tangle and "hashchain" coins is that they have no way of capping their transaction rate. If the number of transactions on network, exceeds the rate the signatures can be verified, then it means the network nodes cannot keep up and the network is effectively non-functioning (DDoS attack).
So for Skycoin we capped the transaction rate, at the maximum rate that a single CPU can verify in real time.
We also are implementing off chain transactions, which can support up to 3000 transactions per second, per server.
No blockchain that exists can handle the transaction rates required for a distributed peer-to-peer utility company, so we had to move these off blockchain.
The whole Ethereum network would be clogged by Skywire running with 600 users downloading videos at the same time. None of the existing blockchains or anything that is an ERC20 token, can handle the required transaction rates (Which are hundreds of times orders of magnitude higher than the rate ECC signatures can be verified).
Skycoin is doing off blockchain payment channels, that use a special one way hashing function, that is much faster than ECC or secp256k1 signature verification (hundreds of thousands per second, instead of 5,000 signature verifications per second). And for small payments less than 1 penny, most of the transactions will be running on this.
It is useless to have a tangle or "Hashchain" that can handle 1 million transactions per second, if a single CPU can only verify 5,000 signatures per second! The computers in the network cannot even verify the transactions, so it does not make any sense.
Also, another problem and reason these ERC20 tokens wont work, is that the transaction fees on ethereum are millions of times higher than the cost of the micro-transactions for doing a distributed ISP. It just wont work.