Bitcoin Cash can solve Ethereum's scalability issues, at least temporary - Vitalik Buterin

  • Vitalik Buterin proposed using other blockchains to solve scalability issues.
  • Bitcoin Cash is one of the options that might serve the need.

Bitcoin Cash blockchain can be used as a temporary solution for Etherethum's scalability issues. This idea was introduced by Ethereum's creator Vitalik Buterin on Ethereum Research.

At this stage, the network can process only 15 transactions per second. With such a small capacity, Ethereum's blockchain cannot compete with its major rival Ripple that processes about 1,500 transactions per second. 

No wonder that Ethereum community has been working on a solution that would allow improving the network's scalability. Ethereum 2.0, a major network upgrade, should help; however, the shift is expected to start no sooner than in early 2020.

To solve the issue, offered deploying other blockchains in the meantime to improve the scalability. Specifically, he mentioned Bitcoin Cash as a viable option. 

"In the shorter term, however, we can start working on these techniques immediately by using existing blockchains, particularly those that have lower transaction fees per byte than ethereum, as the data layer. Bitcoin Cash arguably fits the bill perfectly," he wrote.

He specifically mentioned high data throughput, low fees and friendly community among the features that might be beneficial to Ethereum network.

Meanwhile, ETH/USD is changing hands at $230, having recovered from the recent low of $202.80 touched on Monday. The second largest coin with the current market capitalization of $23.7 billion has gained 5% in recent 24 hours, though it is still 15% down on a week-on-week basis.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin price analysis: BTC/USD jumps on US-China trade war escalation

Bitcoin (BTC) has built up a strong upside momentum during early Asian hours on Monday. The first digital coin has recovered from $9,900 and hit $10,665 high in a matter of hours amid strong bullish sentiments and growing trading volumes.

More Bitcoin News

Cryptocurrency market update: IOTA and Ethereum Classic fly the bullish flag high

The cryptocurrency market has a blend of both red and green signals. The largest cryptocurrency Bitcoin is back above $10,100 after recovering from Saturday’s dip below $10,000. While trading at $10,160, the bulls have eyes on $10,200 in the short-term.

More Cryptocurrencies News

ETH/USD recovers from Sunday's lows, upside momentum fades away

A move above $195.80 is needed to mitigate the bearish pressure. The significant support is created by a confluence of technical indicators below $186.00.

More Ethereum News

Ripple technical analysis: XRP/USD sustained uptrend hints breakout above $0.3

Ripple price is lethargic under $0.28 short-term hurdle but $0.27 is a credible support area in the short-term. Despite the visible declines in the short timeframe charts, XRP/USD has sustained an uptrend from August lows close to $0.24.

More Ripple News


Bitcoin Weekly Forecast: Safe-haven or a high-yield asset? Bitcoin qualifies for both

The cryptocurrency market has been a mixed picture this week. Bitcoin attempted to settle above $12,000 practically every single day of the week...

Read the weekly forecast