From cointelegraph by Emre Gunen

Waterfall Network, a highly scalable and decentralized layer-1 protocol powered by directed acyclic graph (DAG) technology, recently achieved nearly 13,000 TPS on its mainnet.

While blockchain is hailed for its secure, transparent and unmediated transactions, a significant challenge hinders its meaningful entry into the global economy: scalability.

Maintaining consistent transaction speed and quality, regardless of the number of users online, is essential for Web3 technologies to become a cornerstone of the global economy. Without this capability, widespread adoption remains an uphill battle.

At the heart of this challenge lies the blockchain trilemma — the inherent difficulty of achieving scalability, security and decentralization simultaneously. Since security is non-negotiable, developers are often left with no choice but to deprioritize decentralization.

Yet, in the Web3 era, decentralization is more than a technical feature; it is a fundamental principle that distinguishes Web3 from the centralized frameworks of traditional Web2.

An innovative architecture enabling the simultaneous verification and addition of multiple transactions emerges as the solution that effectively overcomes blockchain's limitations.

Instead of trying to add scalability as an afterthought, a DAG is designed from the start to be highly scalable while also being decentralized.

Potentially unlimited scalability

Waterfall Network, a layer-1 decentralized and scalable ledger, addresses the blockchain industry’s most pressing challenges of scalability, decentralization and cost-effectiveness. Compatible with the Ethereum Virtual Machine (EVM), the network allows users to run validator nodes on low-cost devices while enabling seamless migration of decentralized applications (DApps).

Waterfall recently set a new benchmark for blockchain performance, achieving 12,778 transactions per second (TPS) on its mainnet — 1,000 TPS more than its testnet record. It is a rare example of the mainnet outperforming the testnet performance.

Central to Waterfall’s scalability achievements is its unique directed acyclic graph (DAG) architecture. Unlike traditional blockchain structures, DAG enables parallel block creation and, in later phases, parallel transaction processing, allowing multiple transactions to be verified and added simultaneously. The design significantly boosts transaction throughput while offering potentially unlimited scalability and portability to DApps.

As more validators join the Waterfall, grants and rewards are distributed to researchers and developers contributing to community-driven security audits and bug bounty programs. Additionally, the DAG architecture supports running validator nodes on virtually any device, including low-cost laptops and mobile phones, further enhancing decentralization.

1.5 million validators drive decentralization

Waterfall is advancing a future where scalability and decentralization coexist seamlessly, supported by Google Cloud Web3 Starter Program. The collaboration provides developers with access to cloud resources, enabling the testing and optimization of infrastructure across platforms. Additionally, Waterfall has joined Decentralized Trust Labs as a Linux Foundation Member, further cementing its commitment to innovation and decentralization.

With its EVM compatibility, Waterfall facilitates seamless migration of applications built on Ethereum’s code and ecosystem. The network also integrates with Ethereum-supported wallets and communities, enhancing accessibility and user engagement.

Building on this foundation, Waterfall Network has achieved significant milestones. On June 19, 2024, the network announced that it became the first proof-of-stake (PoS) platform to pass tests with 1.5 million validators.

After its public launch on July 17, 2024, the platform gained rapid momentum, achieving a 339% increase in total value locked (TVL) within its first month. By Aug. 17, 2024, Waterfall reported 8,391 active validators, securing its position as the third-largest decentralized PoS network globally in terms of validators count.

Waterfall head of research Sergii Grybniak stated that they have joined the ranks of very few networks that have surpassed testnet benchmarks on the mainnet, adding:

“With the ability to run on virtually any type of node, the Waterfall Network is on track to become one of the most scalable and decentralized layer-1 networks.”

Combining Web2’s efficiency and user-centric qualities with Web3’s decentralization ethos remains a key goal for innovators like Waterfall. Achieving this synthesis will enhance scalability and unlock new levels of trust, inclusivity and innovation.