Blockchain Protocol Scaling with SPECTRE

honeywithmilk(43)

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2018-02-20 04:11

Hi Steemians,

I just came back from an excellent blockchain meetup in Boston, MA. USA. It got me excited about blockchain scaling solutions. The meetup was about blockchain protocol scaling with SPECTRE presented by the Co-funder of zencash: Rob Viglione.

Here is Rob Viglinoe.

Why are we looking for a scalability solution? The following graph presented the problem well. As Bitcoin and blockchain have become mainstream. The block size and fees have increased significantly. The transaction fee on Coinbase is 0.25%. Some trades stay unfilled for months! The management fee of robot advisors like Betterment and Wealthfront charge investors 0.25% annual management fee. In the crypto world, each trade is 0.25%! Think about the cost of trading crypto for a year. 20 trades of the same assets cost about 5%!

Directed Acyclic Graph (DAG) revolutionizes the way cryptos were built and potentially can address the scalability issues. Unlike the traditional blockchain technology, DAG transactions are linked from one to another, meaning one transaction confirms the next and so on. IOTA is using the Tangle DAG. That's why I believe it has so much potential.

The following slide describes the SPECTRE BlockDAG.

Here is an example of why SPECTRE BlockDAG is more efficient than a traditional blockchain.

Of course, such a good solution still has its limitations. The key limitation is that all the DAGs solutions are still in the experimental phase. However, the Satoshi consensus has been tested by various crypto protocols and it is quite robust.