MultiversX’s Sovereign Chains can enhance layer-2 blockchain transaction speeds by up to 100 times.
The MultiversX smart contract platform has the potential to increase the transaction throughput of extant layer-2 (L2) blockchain networks by up to 100 times.
The recent introduction of Sovereign Chains by MultiversX, a blockchain-as-a-service solution, enables a substantial scalability increase. This solution enables existing L2s to inherit the scalability of MultiversX.
According to Beniamin Mincu, CEO and co-founder of MultiversX, existing L2 networks can increase their transactions per second (TPS) and smart contract TPS by up to 100-fold by utilizing Sovereign Chains.
“Sovereign Chains have countless innovations and hardcore engineering behind them to reach such speeds with relatively inexpensive machines – 20 validator nodes running on 16 cores (~4.7GHz), 64GB RAM, 1TB NVME SSD (but we only used 10 cores for processing).”
Scalability and high transaction throughput are indispensable for the successful implementation of blockchain technology in practical applications, including micropayments, which necessitate a network to resolve thousands of transactions in a timely and cost-effective manner.
The network attained a throughput of 77,000 TPS during the inaugural demonstration of the public Sovereign Chain. This performance is nearly 77 times faster than the utmost real-world throughput of Solana, the industry leader, which is 1,053 TPS.
According to Mincu, the MultiversX team is currently concentrating on achieving the 100,000 TPS threshold.
“The demo for the first public Sovereign Chain reached a peak of 77,000 TPS and there is ongoing work to increase this to over 100K… It boils down to optimizations at every step, from consensus to networking to the whole journey of transaction processing.”
Nevertheless, the achievement of comparable throughput in real-world scenarios is a difficult task, as demonstrated by Solana, which was only able to achieve 1.6% of its maximal theoretical throughput of 65,000 TPS, as reported by CoinGecko.
In addition to enhancing throughput, Sovereign Chains can also enhance the interoperability of L2s that are constructed on top of Bitcoin, Ethereum, and Solana.
Mincu posits that this form of native interoperability, which is supported by chain abstraction, has the potential to unlock the full potential of decentralized blockchain networks:
Decentralized finance (DeFI) protocols are becoming increasingly challenging to work with due to the fragmentation of the current blockchain ecosystem. To interact with other blockchains, users must span assets across cross-chain bridges.
