It’s no secret that blockchains suffer from scalability issues. As cryptocurrencies and blockchain technologies become more widely adopted, the number of transactions requested per second is increasing dramatically causing transaction processing times to slow down.
Bitcoin has a painfully slow transaction time of between 3.3 and 7 transactions per second, while Ethereum saw a huge backlog of transactions when the Cryptokitty craze swept through it early in December 2017.
Trinity, the Lightning Network, and the Raiden Network are changing this.
Like the Lightning Network for the Bitcoin blockchain and the Raiden Network for the Ethereum blockchain, Trinity aims to address scalability issues on the NEO blockchain by employing state channel technology.
Simply put, state channel technology allows for transactions to be made off-chain via a multisignature agreement or smart contract. Multiple transactions can be made within these off-chain agreements meaning exceptionally fast processing and cheap transaction fees as opposed to each transaction being made directly on-chain.
Only when all the conditions of all the transactions have been fulfilled does the transaction chain move onto the appropriate blockchain.
By employing state channel technology on the NEO blockchain, Trinity will be able to address some of the main limitations of blockchain technology: scalability and privacy.
Using off-chain scaling technology, Trinity is to NEO what Raiden is to Ethereum – and it’s impressive!