Create a New Coin
Many new currencies aim to supplant bitcoin altogether. That’s mostly motivation behind Nano, Litecoin and various others. If you are trying to improve crypto, your first idea is to start over. But is that the right option? It is easy to conceive a coin but getting people to switch to other alternative is hard. Network benefits exist if the currency you’re using already has users but users are unlikely to entrust their savings to a technology that is new.
Bitcoin the Lightning Network
The leading Blockchain is still only able to handle not many transactions per second. The ability to match Visa or MasterCard has become rare for the cryptocurrency developers. However, crypto developers are now exploring different solutions to the same problem. It’s not possible to catch up to Visas but here are some of the cryptocurrencies that are trying. We will give them credit for that.
Let’s define speed first.
Speed: Several proof-of-stake (PoS) cryptocurrencies boast speeds in the order of tens of thousands of transactions per second.
If you’ve heard about the lightning network, it is known as the best scaling solution to improve bitcoin speed and performance. Hundreds of stores are willingly accepting lightning networks now. Isn’t that great? If you don’t know what lightening network is, then don’t worry, we are here to explain it. Simply Lightning Network is a secondary network with no Blockchain. The network can reach millions of transactions per second. However, it can be a little impractical for anything larger than microtransactions. Users are also advised to put their serious money into it. its very complicated for the developed and also contains lightening buys. Doesn’t sound really suitable for Blockchain
After bitcoin, Ethereum has become the second largest Blockchain but it still needs some improvements. All 25,000 nodes are performing the same computations. It leads to the wasting of resources and limits Ethereum. Ethereum can distribute the math among subsets of the network, this is also known as sharding. Sharding is a system of dividing computation work into smaller pieces, each to be verified by a different set of nodes.
If you have heard of plasma, you know what we are going to talk about. Plasma is a hypothetical set of smart contracts that divide the main Blockchain into a web of child chains, each still connected with the parent. However, as you know plasma is still in the future. However, sharding has been successful already.
Bitcoin Cash: 0-conf Transactions
Bitcoin cash is quite simple and less elegant than the lightning network but that doesn’t even it works poorly. The vision is to make transactions cheap that there isn’t any problem for the Blockchain. However, the downside of the 0-conf is the trusting of the unconfirmed transaction will succeed. So it’s also a risky process. There have already been several instances of double spends. Even though it might be hard to full off the consistently but if you never try you never know. Ayyy