How to Make Your ICO as Fast as the Internet

Five solutions for speedy and responsive blockchain processing.

Leah Zitter
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Right now, blockchain technology is where the internet was at the beginning of the 21st century... agonizingly slow with exceedingly long upload speeds. With blockchain, this is because each and every node has to “assent” on the blocks that pass through.

Popular blockchain platforms such as Bitcoin and Ethereum can process around 10 transactions per second on average. In contrast, payment companies like Visa currently process around 5,000 to 8,000 transactions per second on average. Transactions become more expensive since nodes prefer those with higher prices, and popular cryptocurrencies raise costs on a highest-price-first-served model.

The slow speed and high cost of blockchain transactions known as blockchain’s “scalability problem” is one of the issues that hinders mass adoption of blockchain technology.

Say you want to build a blockchain startup and need far more space for instant communication and for fitting all the traffic on your platform. Or, say you want communication to be as seamless and fast as our internet is today. How do you accomplish these goals given the constraints of blockchain? Well, blockchain engineers have found five key ways to help you.

Proof of scale (PoS)

Proof of scale (PoS) is a rather opposite version to proof of work (PoW) which is Bitcoin's standard mining procedure. Proof of work is where every node in the network has to process every transaction. So, if there are a thousand nodes on the network, all of them would have to process and confirm every transaction made on that network.

This includes having no double spending, correct signatures, valid identification, and so forth. No wonder it takes so long! On the other hand, proof of scale is where only a select few of those nodes are chosen. Typically (but not necessarily) selected by your network on the quantity and age of their crypto stack.

Either you yourself can choose these “lucky” nodes or your stakeholders choose them. These nodes usually end up governing the network, so there’s the “equal voice” problem on the minus side. However, by choosing certain individuals to process communication on the plus side, transmission of smart contracts proceeds far faster and you manage communication on your platform more expeditiously.