ETH creator Vitalik Buterin says that ethereum will soon reach 1 million transactions per second. He was speaking in a recent OmiseGO AMA session. He said that with the help of second layer solutions like Sharding and Plasma, the ethereum network will be able to process 1 million transactions per second.
Before this, at various conferences Vitalik had always emphasized that scalability has always been a complicated issue and ethereum is struggling to deal with scalability issues.
The reason I think layer 1 and layer 2 [networks] are complementary is because ultimately, if you look at the math, the scalability gains from the layer 1 improvements and layer 2 improvements do ultimately multiply with each other. If you have a Sharding solution, the Sharding solution itself might increase the scalability of Ethereum by a factor of 100, or eventually even more. But then, if you do Plasma on top of the scalability solution, then what that means is, you’re not just doing 100 times of the amount of activity but you are doing 100 times the amount of entrances, the amount of exits, and despite resolutions, said Buterin.
Ethereum is doing five per second and if it goes above six, then it is also at peak capacity. Buterin expressed that second-layer scaling solutions that are right now being tried on the Ethereum testnet could empower the Ethereum blockchain system to support large scale decentralized applications with huge clients by adopting a creative strategy in enhancing the blockchain.
He further said that
“If you do plasma on top of a scalability solution, then what that means is that you’re not doing 100 times the amount of activity but you are doing 100 times the amount of entrances, 100 times the amount of exits, 100 times the amount of the speed resolutions, and all of that also improves the number of users the system can handle, the number of disputes the system can handle, and ultimately the maximum safe capacity that the layer two system can handle by a factor of 100 as well. So if we get 100x from sharding and 100x from plasma, those two together basically give you a 10,000x scalability gain, which basically does mean that blockchains will be powerful enough to handle most applications people are trying to do with them.
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