Ethereum has changed the game in the blockchain world, but it’s not without its problems. High gas fees, network congestion, and slow transaction times are some of the biggest issues.

To tackle these challenges, the idea of Parallel EVM (Ethereum Virtual Machine) has come up as a potential fix. In this blog, we’ll look into how Parallel EVM can make Ethereum more scalable, check out its current implementations, and highlight the unique approach that Meter is taking in this area.

The current scaling trend in Ethereum

Ethereum is a powerful platform for decentralized apps and smart contracts but faces major scaling problems. Its popularity has led to high gas fees, making transactions expensive and often impractical for everyday use. Network congestion further complicates things, causing delays and inefficiencies that slow down transactions and limit the platform’s capacity for high-volume applications.

To tackle these issues, Layer 2 solutions have become essential for scaling Ethereum. These operate on top of the main Ethereum network, reducing congestion by handling transactions off-chain and settling them on-chain later. Among these, rollups are particularly popular.

Optimistic Rollups assume transactions are valid, checking them only if there’s suspicion of fraud, while Zero-Knowledge (ZK) Rollups use mathematical proofs to verify transactions, boosting security and efficiency.

Sidechains like Polygon and xDai also help by providing parallel blockchain environments compatible with Ethereum. They offer faster and cheaper transactions by diverting traffic from the mainnet while maintaining a connection to Ethereum for seamless value transfer.

State channels are another solution, allowing users to conduct many transactions off-chain and only record the final state on the mainnet. This reduces the load on Ethereum, ensuring quicker and cheaper transactions, which is ideal for frequent, small-value exchanges.

In summary, these Layer 2 solutions are key to solving Ethereum’s scalability issues, making the network more efficient, accessible, and capable of handling more transactions.

Key players in the parallel EVM space

Several projects are addressing Ethereum’s scaling challenges with innovative Parallel EVM solutions. Polygon, formerly Matic Network, creates a multi-chain ecosystem of Ethereum-compatible blockchains, ensuring security while offering higher throughput and lower transaction costs. It uses sidechains and supports scaling solutions like Plasma, Optimistic Rollups, and ZK-Rollups, making it attractive for developers.

Avalanche uses its Avalanche Consensus mechanism for high-throughput, low-latency transactions, processing thousands per second with near-instant finality. Its ecosystem supports DeFi, digital collectibles, and enterprise solutions, offering flexibility with multiple virtual machines and subnets.

Binance Smart Chain (BSC) is fully compatible with Ethereum, allowing seamless application porting. It uses a modified Proof of Staked Authority (PoSA) consensus for faster block times and lower fees but faces decentralization issues due to fewer validators.

These projects—Polygon, Avalanche, and Binance Smart Chain—enhance blockchain performance and efficiency, expanding possibilities for decentralized applications and driving the blockchain ecosystem’s evolution.

Meter’s perspective and approach to Parallel EVM

Meter is a protocol in the Parallel EVM space, offering unique advantages over Polygon, Avalanche, and Binance Smart Chain (BSC). Here’s how it compares:

Transaction speed and throughput

Meter uses a hybrid consensus mechanism, allowing thousands of transactions per second with near-instant finality. This rivals Polygon, Avalanche, and BSC, but Meter’s blend of PoW and PoS ensures consistent, reliable throughput without compromising security or decentralization. BSC is fast but doesn’t match Meter’s instant finality.

Security and decentralization

Meter’s hybrid model combines PoW’s security with PoS’s efficiency, offering robust security and decentralization. Polygon and Avalanche rely on PoS, which is secure but may not match Meter’s PoW component. BSC’s smaller number of validators raises concerns about centralization and security. Meter’s protocol further enhances resilience, maintaining security even as the network scales.

Cost-effectiveness and user experience

Meter offers low transaction fees and a stable currency (MTR) pegged to 10 kWh of electricity, ensuring affordable and predictable costs. While Polygon and Avalanche have low fees, they lack a native stable currency. BSC also has low fees, but its potential centralization issues can affect user experience and network security.

Meter provides a balanced solution for Ethereum scaling with high throughput, strong security, decentralization, and cost-effectiveness. Its unique hybrid consensus mechanism and stable currency make it a competitive and innovative player in the Parallel EVM space, addressing critical challenges faced by Ethereum and its users.

The future of Ethereum scaling with Parallel EVM

The future of Ethereum scaling with Parallel EVM is promising. These solutions reduce congestion and transaction costs by processing multiple transactions simultaneously across different chains, enhancing the network’s overall efficiency and user experience.

Developers benefit from a familiar environment, allowing them to deploy smart contracts with minimal adjustments, while users enjoy improved performance and lower costs, making dApps more accessible.

Parallel EVM also improves interoperability with other blockchains, enabling seamless asset and data transfers. This enhances Ethereum-based applications’ utility and contributes to a more connected blockchain ecosystem.

Challenges remain, such as technical hurdles, security, and maintaining decentralization. Regulatory and market dynamics also play a role in adoption, requiring engagement with policymakers and adaptation to market shifts.

The outlook for Ethereum scaling with Parallel EVM is positive. These solutions are expected to improve scalability, security, and usability, attracting more applications and positioning Ethereum as a leading platform for a diverse decentralized economy.

Conclusion

Parallel EVM brings exciting advancements to Ethereum’s scalability issues, boosting transaction speed, security, and cost-effectiveness. While it’s a strong solution, it comes with complexities and needs more development and regulatory support.

Whether it will be the ultimate solution for Ethereum scaling is still up in the air, but its potential is clear. As DeFi evolves, it’s important for developers, users, and stakeholders to stay engaged and informed to help shape the future of blockchain technology.

Featured image credit: Shubham Dhage/Unsplash

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• Source: https://dataconomy.com/2024/06/10/is-parallel-evm-the-solution-for-ethereum-scaling/