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Blockchains are praised everywhere as improving most of our today's tech problems. They are proposed for Recordkeeping, Title protection, Health records, etc.

Let's say hundreds of organizations start using Ethereum to build their DApps on, they all get deployed.

Won't this bloat the Ethereum blockchain to unusuable levels? Is there any sharding, compartamentalization or something on the blockchain which helps scaling here? Does every DApp run in some sort of private space? Or does it need to create private blockchains? Even private network Ids?

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    Welcome. Your question turns attention to some big headlines. I think you might get better response if you tackle these as separate questions and peruse the answers to similar questions as you formulate your questions. Mar 16, 2017 at 14:53

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If you use the main network, all dapps run on the same blockchain, and full nodes will download all data stored there.

Scalability is one of the main issues not only for Ethereum, but for blockchain in general. There are different ways to solve it (sharding, offchain transactions, etc.). Ethereum is going to solve it through sharding, but it's not yet implemented (it will probably take a few years). For a full explanation of the research that is being done in this topic, see: Sharding FAQ

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  • Thanks @AdrianClv, pretty clear answer. So let's say I'd be concerned about this and start my dapp on a different network. This implies a private blockchain. Will all nodes still see that? Or will the dapp need deployment to different nodes (which would be my assumption?) Mar 16, 2017 at 14:37
  • Each blockchain is a different network. Nodes in the main blockchain cannot see what is happening in a private blockchain and vice versa.
    – AdrianClv
    Mar 16, 2017 at 16:37

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