Scaling at the blockchain level hurts …

January 29, 2021

Blockchain scaling hurts decentralization – Microsoft

In his blog, Alex Simons, Microsoft’s director of product support for the identity division, outlined his own point of view on the problem of blockchain scalability. In his opinion, second-tier solutions, such as the Lightning Network, are superior to solutions implemented within the blockchain (on-chain)..

“Although some blockchain communities increase throughput by modifying the blockchain (for example, changing block sizes), this approach generally reduces the decentralization of the network and cannot afford the throughput measured in millions of transactions per second, which the system will generate globally.” he writes. “To overcome these technological barriers, we are developing decentralized second-tier protocols that run on public blockchains and help achieve global scalability while maintaining the qualities of a world-class decentralized identity system.”.

At the same time, Microsoft promises to work on the development of solutions for scaling second-tier blockchains within its own projects, however, it is still unknown how these developments will be applicable to public blockchains of cryptocurrencies..

Scaling at the blockchain level hurts ...

“We are shocked and glad that we had the opportunity to tackle such a serious problem, but at the same time we understand that we will not be able to cope with it on our own,” writes colleague Simons Ankur Patel. “We look forward to the support and contributions of our alliance partners, members of the Decentralized Identity Foundation and the Microsoft ecosystem of developers, organizers, business partners, software and hardware creators.”.

The Lightning Network developers and community have already made significant strides this year with nearly 1,800 nodes in the new network. The second-tier solution is expected to reduce fees down to a fraction of a cent and transfer transactions almost instantly.

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