Teranode will be a “monumental” improvement that fully demonstrates Bitcoin’s scalability. Scalable on-chain without speed and cost bottlenecks. CoinGeek’s Becky Liggero spoke with Siggi Óskarsson, Teranode Director of the BSV Association, at the recent AWS Summit in Zurich to find out what’s so special and what role large-scale data services like AWS play in all of this.
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Scheduled for launch in late 2024 and early 2025, Teranode has been able to process over a million on-chain transactions per second through testing. This is already far superior to other blockchain networks, but this is just the beginning. Teranode is expected to be able to handle several times that number in the future.
Satoshi’s original vision and rules for Bitcoin
“We are expanding this work and proving what Satoshi has been talking about for years. I think in 2010 and 2011 he was talking about how Bitcoin would scale in data centers and be run by experts. This is what we are working on and I think we have now proven with a proof of concept that it is possible,” explains Óskarsson.
It is a fundamental rewrite of the Bitcoin node software, but follows the original protocol rules for transactions set by Satoshi Nakamoto in the version first released in January 2009. Óskarsson says his team is taking the original Node implementation, splitting it into microservices, and extending it. Separate all components separately.
Liggero points out that there are thousands of different blockchains today. Why is BSV so special?
“A lot of blockchain stuff is based on assumptions,” says Óskarsson. “So when you work based on those assumptions, you come to some conclusions and you get stuck. And we had to break some of those assumptions, and it took a long time and a lot of discussion about how we could actually do that. “But we broke that assumption and it allowed us to think about the problem differently and scale up.”
The rest of the industry still holds onto many of these assumptions, he added. One of the biggest is the concept of “decentralization.” The word means different things to different people who have different expectations of it.
Decentralization means interaction between users.
Óskarsson emphasizes that there is no intermediary or trusted third party involved between the two parties to the transaction. In this sense, decentralization is one of the “three pillars” of blockchain, the other two being security and scalability. They are all interrelated.
But if you take “decentralization” to mean that everyone has to run a processing node in their own home, it won’t scale. A network based on home users and PCs cannot handle a million transactions per second. Because users must interact with each other peer-to-peer, the underlying infrastructure to actually check timestamps and secure the network may be located in the data center, while the entire network is distributed.
This is where AWS comes into the frame. Rather than experimenting on a purpose-built network of thousands of CPUs, AWS data centers allowed the Teranode team to experiment with different server types, bandwidth levels, and hardware configurations.
Otherwise, building and improving Teranode in a timely manner would have been nearly impossible, says Óskarsson. “AWS helped us get this done very quickly. “It was really great,” he adds.
You can watch the full interview here, as well as hundreds of other informative videos about Bitcoin and blockchain on the CoinGeek YouTube channel.
View: Teranode is the future of the Bitcoin network
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