Crypto Academy Week 15 - Homework Post for @alphafx | Scalability and Improvements Made and Still to be made
Hello professor @alphafx, first of all thanks for the class, although it seems little useful, knowing the basics in the world of cryptocurrencies is something important that we should all know, your class was only a small part of this great crypto world. I hope my task is to your liking.
• This transaction will be executed from the wallet Trust Wallet to the exchange Binance, all the screenshots shown below were taken for me.
• The first thing we do is look for the deposit address in Binance, we copy it, we go to Trust wallet and we send it, in Binance they inform us that the balance will be reflected once it reaches 15 confirmations on the network.
• I will send 0.02 BNB, at the current price of $3.64 it is a total of $ 7.27 approximately. We can see that the cost of the transfer is 0.000105 BNB an approximate of $0.03, so it is a fairly cheap transaction. This commission will be charged for the amount you will send
• As I had told you, Binance informs us that the deposit will be visible in the account when it reaches 15 confirmations, this transfer was executed at 9:37 PM and just 36 seconds the transaction had already reached 16 confirmations
• The transfer on Binance was received at 9:38:44 (21:38:44), approximately 1 minute after the 15 confirmations
• In total this transaction took a total of 1min: 43sg. A very fast and cheap transaction.
• This transfer will be sent from my wallet Trust Wallet to my wallet Tronlink, all screenshots shown below were taken by me.
• Unlike the Binance Smart Chain in the Tron network, the commission charge is not discounted from the transfer amount, the network system offers us Bandwith and Energy resources.
Bandwith: The network gives us a total of 5000 Bandwith every 24 hours, this resource is used to pay commissions when sending TRX or TRC20 Tokens.
Energy: It is used largely by contract developers and in Dapps, in this way they would pay to execute or build smart contracts.
• For this transaction we go to Trust Wallet, we copy our wallet and then we go to tron link to execute the transaction. As you can see in the following image I have a total of 5000 Bandwith.
• Once we are making the shipment we can observe the amount of commissions that they will charge us, as you can see they do not charge us TRX per transaction, but they do charge Bandwith.
• After a few seconds after the transfer was sent, I receive a deposit notification from the trust wallet and the amount sent is reflected.
• If we go to Tronscan we can see that the transfer was effective at 021-05-27 23:14:30 pm (11:14:30 pm) , the transfer took approximately 40 seconds to reach my Trust wallet.
As we could see and demonstrate, the Tron network is approximately 20 seconds faster than the Binance network, with an important difference in the method of payment of commissions.
• In 2019 Tron officially launches The Sun Network, a project that would further improve the scalability of the network, notably improving the speed and verification of transactions, currently the tron network performs 2000 TPS and added to this we get some transfers practically no commissions, which makes the network very attractive to users.
The TRON network has managed to reach a maximum of 5,281,095 transactions in a single day, if we apply mathematics and divide 5,281,095 / 86400 (number of seconds in a day), it gives us a total of 61.12 transactions per second in a just day.
• Behind the Binance Smart Chain network we have its creator, the world's number one centralized exchange Binance. Although many claim that its speed is due to the fact that its network is totally centralized, credits cannot be taken from it for that.
Binance Smart Chain has managed to record a total all-time high of 11,838,329 transactions in a single day. If we divide 11,838,329 / 86400 (number of seconds in a day), it would give us a total of 137.01, that is, binance has registered a maximum of 137.01 transactions per second in a single day.
I imagine that after seeing the graph and the results you must ask yourself, If Tron's scalability is greater than Binance's because it registers more transactions? The answer is very simple, the number of users. Binance Smart Chain has a greater number of tokens in its network and therefore a greater number of users use this network, in addition to this we have that the network belongs to the largest exchange in the world.
• The binance smart chain network has 433,421 tokens, a huge sum if we compare it with the 40,510 tokens that exist in the Tron network, which represents a total of 952% difference referring to the total number of tokens.
• One of the great differences between these two networks is the amount of technological development behind, TRON has managed to be what it is with pure technology and development, always keeping in mind the main idea of cryptocurrencies, which is to be decentralized, however, the Binance network owes its speed to centralization.
• We can see with this data that the BTC lags behind with an average of 3 to 5 transactions per second and with a sending duration of approximately 10 minutes depending on the network congestion, since there have been cases where it can last a long time. more time.
The scalability problems of BTC have been on the rise and with the rise of cryptocurrencies it does not seem to improve.
In the following image I will show you a transaction carried out on 2021-05-28 at 01:39 AM that after more than 5 minutes has not yet been confirmed, this transition had a commission of 0.00014382 BTC which is approximately $5.3
As you can see, there is a great difference in time and commissions between the binance smart chain network, the tron network and Bitcoin.
♦ Let's start with Binance, there are few things that can be done to improve its scalability because it already offers very fast times at low cost, the main problem is centralization, this gives users a lot to think about since in At any time, they can consider a transfer as invalid or they can disappear taking all the money as happened recently in Turkey when the Thodex platform unexpectedly closed its operations.
♦ The TRON network respects the decentralization of cryptocurrencies, but its scalability is very high and superior to many others. Thanks to its development, it has managed to position itself as one of the fastest networks in the crypto market. Thanks to the incorporation of Sun Network, the TRON network has unlimited scalability, in addition, the CEO of TRON, Justin SUN assured that with the launch of scaling between chains nicknamed Appollo, the tron network will obtain improved scalability and the possibility of interconnecting other blockchains. .
♦ Bitcoin, the new protocols are expected to help improve scalability, in this case I am talking about the Lightning Network
Lightning Network: is a protocol created to improve the scalability of BTC. This is possible as the Lightning Network functions as a layer on top of Bitcoin. This layer allows you to do things that you could not do and more specifically; fast transactions with low commissions.
Lightning Network works depending on various technical elements. First of all, the Lightning Network needs that the non-malleability of the currency is ensured. In this way, it would be unlikely for a third person to alter the information about transfers or cryptocurrencies during verification or generation. Thus began the development of the Lightning Network and payment channels.
Payment channels are the main foundation of the Lightning Network. A payment channel is a multi-signature transaction within the blockchain where at least one of them sends funds. In the aforementioned channel, each participating person has a private key and transactions are carried out if the two keys of the two users sign.
Scalability should never be underestimated, a few years ago bitcoin did not suffer from problems, now it is expensive and slow to operate with the cryptocurrency. Only time and hard work will determine if problems can be solved while keeping the centralization of cryptocurrencies intact.
The scalability in the blockchain of any project should always be investigated, although many times we are mistrusted by not knowing how it will develop, however the future of crypto is still uncertain and major technological developments are yet to come.
This is perfect. That's the word. Well done
There is no transaction on the BSC, note that the Binance smart chain is different from the binance exchange.
Thanks for participating
thank you Professor! my first 10! I am very happy ☺️
You earned it
Amazing