While there have been great advancements in the cryptocurrency sector over the past year and a half, there is still a lot of work to do. While the likes of Bitcoin and Ethereum have many positive qualities, there are some significant problems that need to be resolved. The main issue that they both struggle with is scalability issues.
Now it seems that the Ethereum developers are confident that they have found a solution that will help massively with this scalability problem. A type of cryptography first seen with zcash could be the answer according to one of the Ethereum founders, Vitalik Buterin.
It is called zk-SNARKs and that its use could lead to significant increases in the capabilities of the Ethereum network, with as many as 500 transactions each second being possible without having to use any layer-2 scaling solutions like Raiden or Plasma.
These zk-SNARKs make large amounts of info compressed and be considered to be succinct proofs which are always going to be of an identical size no matter how many inputs are present.
It seems that this would be a timely solution as there has been a lot of increasing presser on the researchers and developers at Ethereum to try and solve the capacity transaction issue that has been plaguing the platform for some time now. This new solution could help ease a fair amount of pressure on the team as they try to develop a solution that is more long-lasting.
Buterin is estimating that when this is implemented into their setup, there could be as many as x24 gains for Ethereum transactions, with x50 for all ERC-20 transfers.
If this fails to work as planned, there could be even more pressure on the network. It has been a turbulent time for the value of Ethereum in recent months and it could really do with something to show supporters that they are still here and will be around for a long time yet.