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Binance CEO Counters Ethereum’s Vitalik Buterin on the Biggest Problem Facing Crypto

August 22, 2019

Binance CEO Changpeng Zhao says he disagrees with Ethereum creator Vitalik Buterin’s recent comments on blockchain scalability.

In an interview with The Star, Buterin said the speed and cost of blockchain transactions remain the biggest challenge facing blockchain technology.

“The main problem with the current blockchain is this idea that every computer has to verify every transaction. If we can move to networks where every computer on average verifies only a small portion of transactions then it can be done better.”

In response, Binance CEO Changpeng Zhao issued a tweet saying newer blockchains have already successfully pushed blockchain transaction volume and speed to acceptable levels.

“I like Vitalik and ETH, but speed and capacity was a problem a year ago, but now a largely solved problem for newer blockchains (for now). We need to increase real applications that people actually use, so that we hit the new capacity issues/limits again. Focus on applications.”

Buterin quickly countered, saying recent attempts to beef up blockchain speed are too centralized, citing EOS as an example.

“It’s not solved at all. Even the newer semi-centralized blockchains have TPS in the hundreds; AFAIK EOS has already had scalability bottleneck issues.”

Hundreds of comments poured in, sparking a rigorous technical discussion about orphan blocks, nodes, Raspberry Pi, reorgs and how to solve the holy grail of scalability without sacrificing security and decentralization.

The team at MetaHash countered that their next-generation blockchain outperforms Buterin’s assumptions.

Only hundreds? We can show you 50,000 tps minimum — MetaHash (@themetahash) August 21, 2019

To be serious, we solved the problem of speed and scalability in our own blockchain - TraceChain. We are ready to give you any proofs of it and will be happy to answer questions.https://t.co/2rweFqlivf pic.twitter.com/WN9DhBF2Dv

Supporters of GoChain, Skycoin, Elrond, EOS and HPB (High Performance Blockchain) all affirmed that solutions are available.

Blockchain tech has come a very long way in the last couple of years, from Kittens crashing the largest platform $ETH

To Unionpay smart building a DApp to handle it's big data on crypto's only hardware accelerated chain that is running at 5k TPS globally$HPB pic.twitter.com/oD9TS63Ndm

Buterin also says he’s becoming increasingly doubtful that second-layer solutions like the Lightning Network are the best solution to boost the speed and lower the cost of transactions.

https://twitter.com/VitalikButerin/status/1164086901265129478

He highlighted Bitcoin SV as a more scalable solution.

https://twitter.com/VitalikButerin/status/1164087067363762176

Binance launched its own blockchain, called Binance Chain, in April of this year. Zhao says it can handle about 2,000 transactions per second. In contrast, the Ethereum blockchain currently supports roughly 15 transactions per second. However, Binance Chain is not designed to support smart contracts, a key factor in its ability to support higher transaction volume.

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