Justin Bons, the founder and CIO of Cyber Capital, has shared insights into some scaling solutions that could change the market outlook of Bitcoin (BTC) and Ethereum (ETH) respectively. Bons believes that these solutions are the future of digital assets, despite Bitcoin and Ethereum's reluctance to adopt them.

Parallelization

This technology makes it possible for all computer cores/threads to be used in parallel, ensuring that processing power that would otherwise be wasted is utilized. Bons thinks that all chains should implement this solution, as the trade-offs are negligible. Protocols like Solana, Aptos, SUI, and SEI are currently utilizing this parallelization scaling solution.

Sharding

Sharding involves the separation of large databases into smaller, faster, and more easily managed parts. Bons says that sharding takes the principle of concurrency a step further by splitting the workload between multiple distinct machines or parties, amounting to true scaling. The primary trade-off is that cross-shard messaging sacrifices some speed due to the added confirmation time.

Direct Acyclic Graph (DAG)

DAGs involve a tree-like structure with multiple branches, boasting "infinite" scalability and speed. However, the trade-off is the inability to track a single composable state. Avalanche's X-chain, Fantom (FTM), Kaspa (KAS), and NANO are some of the prominent examples of projects that already utilize this solution.

Zero Knowledge (ZK)

This approach uses cutting-edge cryptography to grow efficiency by only putting the proofs into the chain rather than the entire data. Bons says this breakthrough has massive potential to revolutionize the blockchain scaling field, while also solving the blockchain scaling trilemma. Polygon zkEVM stands out as a prominent example of a Layer-2 scaling solution that has implemented this solution.

Modular

Modular scaling is often viewed as heterogeneous sharding, as it splits the workload between multiple chains, each with its own rules. Bons highlighted that Ethereum Layer-2 scaling solutions do not sufficiently fall into this category, as they lack a common interoperability protocol.

Bons is confident that if implemented, these scaling solutions will contribute significantly to enhancing Bitcoin and Ethereum's efficiency and market outlook.