The Ethereum blockchain has started to show signs of network congestion issues. There are hundreds of ICOs planning to run smart contract code on the Ethereum Virtual Machine – so until the ETH blockchain is ready-to-scale at a healthy multitude of where it’s at now – most of those projects will have to jump ship to a less congested Solidity-coded blockchain like Expanse, UBIQ
The influx of new ICOs and wide-eyed users have recently started to push the ETH blockchain to the limits in what it is currently capable of.
In previous months we’ve been hearing a lot about Bitcoins congestion and rising fees. Bitcoin may be evolving far slower than other blockchains and as it’s such a treasured store of value in terms of both; physical and ideological. This slow, careful evolution probably isn’t a bad thing – I’m sure you’ve heard of the Ethereum hard fork and the centralized rewriting of the blockchain due to a bug in the smart contract.
Alternative Ethereum-forked blockchains such as ETC, UBIQ and EXPANSE will be looking to step up to take some of the Dapp & ICO load off Ethereum’s chain.
Etherscan shows that more than 300,000 transactions were broadcast to the blockchain on the 20th of June, the highest single-day amount ever observed on the two-year-old blockchain.
The rise in popularity has led to increased block sizes reaching new records. ETH transaction fees have also risen sharply.
The combination of these factors, seem to be causing delays and withdrawal service disruptions at a bunch of exchanges and services providing ETH.
The latest hugely popular ICO – Status – is partially being blamed for the increased transactions and rising gas prices.
One thing is for sure, we’ll be hearing more about Ethereum’s potential scalability solutions going forward.