Sidechains - Crypto Academy / S4W8 - Homework post for pelon53.
designed by me from photoshop
1.- Explain in detail the Sidechains with the use of ZK-Rollups.
Before I go into detail of sidechains using ZK-Rollup, I would first of all try to define and explain what a side chain is in simple terms.
One of the biggest problems of Blockchains was the problem of scalability, this issue has hindered the efficiency of the blockchain in so many ways. so this side chains were built to increase the efficiency of existing blockchains. it is connected to the existing block chain with a two(2) way peg making the whole process very reversible
there are many advantages of a side chain but I will be listing out a few
SOFTWARES TESTING
One of the paramount importance of the side chain is to test new and probably unsettled softwares so if per-adventure the software is harmful, it wouldn't affect the existing blockchain.
SOLVE SCALABILITY ISSUES
As I mentioned earlier, the side chains are used to solve scalability issues since transactions can be carried out on the side chains making the blockchains faster.
FUNCTION WITH Dapps
peradventure, if a developer is not satisfied or does not feel comfortable on the cosat of transaction, they can move their Dapps on the sidechains.
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Still on the breakdown process, a Roll up gives a 2-layer promising solution that computes data outside the chain and saves data on the chain which is done with the help of smart chain contracts that roll up the datas and send it off-chain for computing.
so therefore, a ZK(Zero Knowledge)-roll up in simple terms is a validator that uses cyptographic evidence to show the validity of every transaction which each transaction having it's own validity evidence. it works with an approach called the zero knowledge proof there by minimizing data size and causing a reduction in the price of gas fee. a good example will be the representation of accounts by indexes instead of addresses this helps greatly in the reduction of transaction size.
The zk-roll up consists of two major players
- Transactors
- relayers
The transactors are in charge of creating the transfer and then sharing it to the network. The relayers collect the transfers and make the roll-up and also generate the cryptography proof called the SNARK
The zk-roll up uses a cryptography proof called SNARK(succinct non-interactive argument of knowledge) to roll up a lot of transfer off-chain which is posted on the layer 1.
the zk-roll up maintains the state of all the transfers on layer 2 using the smart contract and this section now can only be altered or updated using a validity proof. that is to say all the zk-roll up needs is the validity proof instead of all transaction data which makes the block quicker and faster to validate. keeping no time wasted when moving from layer 2 to layer 1
as mentioned above, the account representation with an index instead of an address is a great aid to reduce the transaction from about 32byte to 4 byte.
Advantages of zk-roll up
- first it is decentralized and we alreasy know the benefits of a decentralized system
- it is very secured
- Faster time validation
- cheaper gas fees
Disadvantages of zk-roll up
- very complex to compute
- not so nice for a general purpose use
2.- Explain the Liquid Network side chain
The liquid network side chain is a side chain of bitcoin which is denoted by L-BTC the Liquid network was created and developed by the BLOCKSTREAM with the aim of moving bitcoin faster and quicker around the blockchain
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Feature of the Liquid network
there are a few key features that the liquid network is known for and I will be listing them out
Confidential Transactions:
By default, the assets are hidden by the liquid network side chain making their datas confidential and far away from third parties
Secured Trading
The liquid network also provides a great and secured trading platform using the liquid swap tools to trade on assets on the open source
Rapid Transfer
Compared to the bitcoin mainchain, the transfers on the liquid network are done within a maximum of 2minutes and investors can go about their duties without waiting for heart breaking transactions
Issue new assets
securities, token, and even stable coins can be issued on the liquid network and traded without restrictions on the network.
The Liquid Network is a bitcoin sidechain as I explained earlier and it works with a 1:1 pegged token which is the L-BTC which helps in the transaction of coins faster than normal Bitcoin space and this is overseen by a federation of selected nodes
The nodes are organised by a huge OTC crypto exchanges. the federation has about 57 members and each transaction must be signed by atleast 11-15 representatives of the members. when the peg out is initiated, the representatives willconfirm that the address is a legitimate address and also confirm that the L-BTC has been burned then sign the transaction.
It is done by a pegged in process, when bitcoin is deposited into the multi-sig wallet handled and controlled by the federation, the bitcoin is moved to the side change using a liquid node and this can be done by anyone. As soon as it is confirmed an equivalent L-BTC will be given to the user.
But it is important to not that it is very unwise to convert your BTC to L-BTC if you do not have a means to peg out or convert back to BTC as a peg out operation can only be done by a liquid member. in other to transfer back to the main chain, the Liquid federation will burn the L-BTC that is in their possesion and an equivalent BTC will be deposited on the main chain which is the peg out
3.- Describe the steps to connect the Metamask wallet and the Polygon network wallet. Show screenshots.
connecting the metamask wallet and the polygon network wallet is quite simple if you follow this rules
- download the metamask extention if you do not have it, here is the link mine is already added that is why you can see it this way
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- open the metamask extension, and click on the drop down menu
- click on custom Rpc
- The page below will be displaced so you can input the polygon network desired
- Input the details below to activate the polygon network and click on save
- below is the image of the activated polygon network
If you have gotten to that point, you have done a great job, but we aren't done yet. we will be going over to the polygon wallet to complete the activation
go the link click on use polygon as you can see below
after clicking on the use polygon, click on the polygon wallet then the next step is to click on the connect wallet navigation as we can see in the image below
there are some wallet options but for the purpose of this assignment, we will be using METAMASK WALLET
You will be required to make a confirmation of the network, if you look at the image below you will see that it is awaiting confirmation
after selecting the network you will be required to connect to the polygon wallet
we are almost done as the last stage required is the signing stage which we can see below
- below is the verification of the connection made between the metamask wallet and the polygon wallet
4.- According to the polygonscan block explorer, when will the block 25,000,000 be generated? Show screenshot. Explore the 12,000,000 block, at that time what was the price of the Matic? Show screenshots.
According to the polygonscan block explorer, when will the block 25,000,000 be generated?
There are two ways that the block 25,000,000 time of generation can be determined. which are from the websitehttps://polygonscan.com/ or mathematically and I will be showing the two approach here
- lets start by going to the website https://polygonscan.com/
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- click on the search block and input the number 25000000 as you can see below
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- the result of the futuristic block will be displayed with a future assumed date that could change with respect to average block time
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Using the mathematical approach
Inorder to achieve an estimate of the result above we have to determine the average block time for the processing of one block. we will be using an average block time of 2.4secs as at the time of this assignment
2.4secs = 1 block
60secs(1min) = 25 blocks
1 hour = 25 x 60 = 1500 blocks
24hours(1 day) = 1500 x 24 = 36000 blocks
at the time of assignment
Block in view = 25000000
current block = 20603450
remaining block= Block in view - current block
remaining block = 4396550
number of days remaining to reach 25000000 = 4396550/ 36000 = 122.126
converting 0.126 into hours = 0.126 x 24 = 3.024 hours
so therefore, using the mathematical approach we got 122days 3hours
Explore the 12,000,000 block, at that time what was the price of the Matic?
following the same process used above, search the 12000000 on the search engine and the block details will be displayed as we can see below
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the price of Matic as at that time was $0.38/matic
CONCLUSION
Honestly for me it was an interesting experience carring out this homework post, learning about the side chains, the zk-roll ups, the Liquid network, learning how to connect the meta mask wallet with the polygon wallet and the exploration of the polyscan website. I really did learn so much and I hope those who go through my post, will also learn alot. thank you so much for reading through
best regard
@pelon53
You've got a free upvote from witness fuli.
Peace & Love!