Cointelegraph follows the development of a completely new blockchain, from inception to the mainnet, and beyond, through its series, Inside the Blockchain Developer’s Mind, written Andrew Levine, Koinos Group.
Scalability is a hot topic in blockchain. However, few people understand what that term means. Koinos Group refers to scaling as scaling to the masses. A blockchain that is accessible to everyone. This means that the blockchain network must be capable of supporting such a load. Scalability is often used to refer to this.
Experience is key
They don’t talk much about the obvious implication that users must enjoy a positive user experience. Because there is no demand to provide bad user experiences or the necessary network resources to deliver them, terrible user experiences can be infinitely scaled.
Related: Searching deep for Bitcoin Scalability Through Layer Two Protocols
This can be seen in the fact that most projects don’t talk about scaling. Instead, they focus on technical implementations such as proof-of-history or layer 2. These are the solutions Ethereum uses to solve its scaling problems.
These projects are trying to address Ethereum’s scaling limitations by integrating scaling solutions earlier, but they fail to realize that these solutions only make sense within Ethereum’s context as the first general-purpose Blockchain and the one with the highest developer adoption.
Ethereum: The first to move
Ethereum gave developers the opportunity to create applications on a shared platform blockchain using a programming language that was very similar to those they used to build applications. It was called a Turing complete language. Building decentralized applications on Ethereum was an incredible leap in speed and ease compared to other blockchains. This unparalleled user experience has allowed Ethereum to grow at a rapid pace. The demand for Ethereum’s resources has outpaced supply. This has resulted in an increase of gas demand and a corresponding price rise, making Ether (ETH), holders extremely happy.
Stakeholders and developers of Ethereum do not want fees to be eliminated or reduced. This would be similar to oil producers trying to lower the price of oil. They don’t care about improving the user experience if there is excess demand for their network resources. Instead, they care more about increasing supply (scaling), while maintaining the current user experience.
Related: Ethereum fees are skyrocketing — But traders still have options
That is Ethereum! Ethereum is the 900-pound gorilla of general purpose blockchains. It has incredible developer adoption, first mover advantage and unfathomable capital investments. It’s a great platform, and the plans for scaling it make perfect sense for Ethereum. They are not applicable to platforms with no usage or developer adoption.
We see many projects trying to convince users to use Ethereum for growth.
Analogy as a method of reasoning
This is analogous reasoning, not first principles reasoning. Instead of looking at what others are doing, you make decisions that focus on your problem and the best path to solving it. Sharding is the best way to scale Ethereum, and this is an example of reasoning by analogy.
Koinos Group approaches this problem using first principles. Scaling to the masses does not mean integrating some magic technology that supports everyone overnight. Technology platforms never go from zero users to mass adoption in a matter of hours. Exponential growth is the only way a platform or product can reach mainstream adoption. I will repeat it. Each product or platform is adopted by mass via exponential growth.
This means that your platform or app stack can support any number of transactions or users, no matter how many. This is basically irrelevant.
It doesn’t matter how expensive your product is, what matters is that it has a unique value proposition that early adopters will love. Koinos lets people use decentralized apps for free by simply holding liquid KOIN tokens within their wallets. Because every liquid KOIN token has mana, they don’t need to purchase an account or stake their tokens. The tokens that contain mana from an account are automatically locked until they run out, which creates an opportunity cost rather than an explicit fee.
Video game experience
This makes the blockchain more enjoyable than the average UX. Although this creates a completely different user experience and is more enjoyable, it’s unlikely that everyone will want to use Koinos from Day 1. Ethereum’s fee-based model is still the dominant paradigm, which is only validated by its many imitators/competitors. It has a large number of token holders, developers, and institutional investors who support it (and, by extension, its fee based model).
Related: In the mind of blockchain developers: Building a social DApp that is free to use
A small but hopefully not too large number of early adopters will start using Koinos on Day 1. These people need to have a pleasant experience on the mainnet. But that is all. As these people discover the benefits of the blockchain, they will spread the word and increase usage.
Once Koinos usage reaches a certain level, it will become so popular that the user’s tokens get locked in large numbers. This could lead to a new user experience that is not as good as the original. This is how Koinos looks when it hits its scaling limitations. Keep in mind that the user will not lose those tokens forever (a fee), but they will only be sacrificing an opportunity cost which results in an infinitely better user-experience.
Upgradeability is the ultimate scaling solution
Koinos must be designed so that the right scaling technologies are integrated as the adoption grows. Koinos has not been optimized for any specific scaling solution. However, it is designed for upgradeability, which makes it easy to add new technologies once they have been battle-tested. All of the projects that have been experimenting with scaling technology prematurely become fertile testing ground for Koinos.
Scaling isn’t an end goal. It’s a process that happens throughout the life of a platform, provided it is upgradeable. You must choose the “right” scaling solution on Day One if the platform is not sufficiently upgradeable. This is more a result of poor upgradeability (and poor engineering) than anything.
Upgradeability is my favorite scaling option.
This article is not intended to provide investment advice. Every trade and investment involves risk. Readers should do their research before making any decision.
These views, thoughts, and opinions are solely the author’s and do not necessarily reflect the views or opinions of Cointelegraph.
Andrew Levine is CEO of Koinos Group. This group consists of industry veterans who are committed to decentralization using accessible blockchain technology. Koinos is their foundational product, which is a free and infinitely extensible blockchain that supports universal language support.
Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.