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Merge branch 'master' into jeebster/5450-staking-errors-refactor
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mergify[bot] authored May 19, 2021
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Expand Up @@ -58,7 +58,7 @@ The list above contains a few examples that show how much flexibility applicatio

Decentralised applications built with Smart Contracts are inherently capped in performance by the underlying environment. For a decentralised application to optimise performance, it needs to be built as an application-specific blockchains. Next are some of the benefits an application-specific blockchain brings in terms of performance:

- Developers of application-specific blockchains can choose to operate with a novel consensus engine such as Tendermint BFT. Compared to Proof-of-Work (used by most virtual-machine blockchains today), it offers significant gains in throuhgput.
- Developers of application-specific blockchains can choose to operate with a novel consensus engine such as Tendermint BFT. Compared to Proof-of-Work (used by most virtual-machine blockchains today), it offers significant gains in throughput.
- An application-specific blockchain only operates a single application, so that the application does not compete with others for computation and storage. This is the opposite of most non-sharded virtual-machine blockchains today, where smart contracts all compete for computation and storage.
- Even if a virtual-machine blockchain offered application-based sharding coupled with an efficient consensus algorithm, performance would still be limited by the virtual-machine itself. The real throughput bottleneck is the state-machine, and requiring transactions to be interpreted by a virtual-machine significantly increases the computational complexity of processing them.

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