Ethereum may very well be the future of commerce; however, as sound as the technology may be, it currently suffers from one major problem: high transaction volume cannot be handled properly. Several high profile ICO’s, like Status and Bancor caused the Ethereum network to become congested and unusable, causing transactions to stall, freeze or fail altogether. The consequences of these failures have sent the price of Ethereum down sharply and prevented many investors from being able to participate in ICO’s.
Over the past several months, the intense interest in ICO’s has created a significant backlog on the Ethereum network. The current block size, mining power, gas structure, and node network can only handle so many transactions before a bottleneck is created. Simply put, there are too many cars on the road, and there are not enough roads to handle the traffic.
According to EthStats, a new block is currently mined once every 19.33 seconds. There are currently 4,049,990 total blocks and the highest number of daily transactions was recorded on June 26th at 316,788 transactions. With the Ethereum network poised for explosive growth, the current limiting factor in processing transactions and ensuring fast execution is the number of nodes themselves, and the need to prevent node overload. Simply put, when a small number of nodes is tasked with processing thousands of transactions, its impossible to keep up with demand.
A solution has been developed by a team of Ethereum enthusiasts which solves one of the principal bottlenecks of the Ethereum network: the number of nodes. By leveraging an enterprise-grade global cloud infrastructure and over 40 years of experience in operating high-speed networks and distributed systems, the founding team at QuickNode has developed a solution which minimizes the technical barrier of participating in the Ethereum ecosystem, the ability to run your own node. No software to install, no dedicated hardware, always on, always in-sync and you never have to worry about running out of disk space.
When more nodes are connected to the Ethereum network, the entire network runs faster. Running your own QuickNode gives you direct access to the blockchain, which prevents bottlenecks and speeds up transaction processing.
QuickNode is building infrastructure to support the future of Web3. Since 2017, we’ve worked with hundreds of developers and companies, helping scale dApps and providing high-performance access to 16+ blockchains. Subscribe to our newsletter for more content like this and stay in the loop with what’s happening in Web3! 😃