Core blockchain protocol developers have to give much thought not just to the overall architecture of a network. They also give much consideration to integrations that will maximize service benefits to the end-users of the networks. One such feature is the transaction per second, which on some systems is referred to as time to finality.
On Bitcoin, its massive computational resource requirement coupled with its relatively slow one block per ten-minute generation rate has drawn a lot of criticism. These criticisms often center around its usability as a currency and its impact on the environment as a result of its electricity consumption.
Since the launch of Bitcoin, several blockchain networks utilizing less intensive consensus algorithms have been launched that not only reduced computational resource requirements but also increased transaction speeds. Blockchain analysts have highlighted in various studies how older generation blockchain networks are risking imminent failure due to the scalability problems facing them—particularly the Ethereum blockchain.
The scalability challenges facing these first generation networks has resulted in protocol developers working on new generation blockchains that offer more scalability and cost-efficiency. In this post, we highlight sub second finality, the latest feature that is designed to optimize how services are offered on blockchain networks.
What is Sub Second Finality
To truly understand what sub-second finality is we must first explore how transactions per second (TPS) is measured on major blockchain systems. Transactions models on most DLT systems include components like transaction orders, timestamps, and digital signatures.
The confirmation process requires all participating nodes to reach consensus on each transaction component. While we already know how long this can take on the Bitcoin & Ethereum networks these speed rates generally become varied the more networks we study.
On the Stellar network, for example, the median transaction time is about five seconds. While systems like the EXRT Network claims their sub-second block throughout is as high as 100,000 TPS. It is still unclear on both of these examples whether a transaction confirmation includes its digital signatures.
Sub Second Finality & BaaS
Blockchain-as-a-Service (BaaS) has within it a lot of use case potential, as we witnessed during the 2017 ICO boom. The industry was introduced to all types of innovative solutions to old and new problems and although we have seen a slowdown in the ICO segment of the blockchain industry new generation decentralized applications development hasn’t ended.
The integration of sub-second finality in new blockchain networks potentially translates to fast response and confirmation times. Some of the use cases we anticipate to see developed include payments solutions, marketplaces, decentralized exchanges & gaming solutions.