Sidechains - Crypto Academy / S4W8 - Homework post for pelon53.

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welcome to my blog friends! it's my delight to participate in this homework task. Hello @pelon53 thanks for the lectures, I've read and I well understood it that is why I'm going to attempt all the questions.

Saturation is the major problem faced by many independent blockchain, but thanks to the side chains or an alternatives blockchain which help in solving these problems by connecting its own blockchain with that of an existing blockchain in order for funds and assets to be circulated between the two network freely.
The most influential blockchain projects Ever trusted is non arguably than Ethereum, well this is because of its Defi nature couple with the fact that majority crypto token today begins their life on ethereum. For sure Ethereum has been able to Showcase its blockchain scalability through its ability to run (dapps) powered by smart contracts, but it is challenging for Ethereum to preserve its unique decentralized nature this is where sidechains comes in and accomplishing that purpose.

There are many types of layer 2 solution, this includes; Sidechains, Plasma, and Roll-ups, Roll-ups comes in two flavors - The optimistic roll-up and the ZK- Roll-ups and what different this 2 is their method of verification but for this task I will be discussing extensively on ZK roll-ups.

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WHAT IS ZK-ROLLUPS?
While optimistic roll-ups is acting in good faith believing that everyone act right, ZK-Rollups meaning Zero-knowledge rollup seek to be sure that a particular transaction actually take place. In each of the transactions ZK-Rollups generates cryptography proofs which has its own validity proof summited to the main blockchain. This validity proof serve as a proxy for their respective or corresponding bundle.

• This method result in significant reduction of data size which inturn lowers the cost of gas and time for validating a block.
• It's helps in proving the legitimacy of transaction data thus making withdrawal time fast.
• Though ZK-Rollup cannot carry out certain applications purpose its great for exchanges and other apps that need simple payment.
• it is secure and decentralized not vulnerable to economic attack like the optimistic-rollup

Some drawbacks of ZK roll-up includes:

• complexity of generating validity proof and time-consuming process.
• in ability to execute smart contract and inability to carry out certain applications purpose.
  

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It's a Zero knowledge rollup that allows payment and transaction of tokens on top of Ethereum public blockchain. Its uses the Ethereum blockchain to store data instead of computation. By utilising zero proof, transactions are easily verified on-chain proof. their off-chains computation have already been carried out. Since this data and that of Zk-proof are available on-chain hermez depends on the same security assumptions as Ethereum.

Proof of donations is a mechanism Hermes network is using. The most important among what he does is how it chooses who the next batch creator should be, it makes an auction for everyone who intending of becoming a Batch creator in the Hermes Ecosystem to bid the number of tokens they are willing to donate in order to become Batch creator. Those who donated the highest amount of tokens becomes the winner and they are given the right to create the next batch.

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It is a layer 2 scalability engine. It brings scalability and privacy to a blockchain closer to us. It was deployed since June 2020 on Mainnet it supported the wide range of use cases like the pepertual trading, spot trading, and NFT trading and minting.
It ensures computational integrity, reasons why several applications rely on Starkex. Starkex can be deployed either in ZK- roll up mode(data-on-chain or on validium mode(verifying data-availability with sidechain)

Wallet Integration: starkex support wallet; this makes it a success! It support ledger like Nano X and S,. Wallet connect and ethereum. It offers metamask integration.

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It allows for low-cost of trading payment and high-through put on ethereum. Loopring is secure, it's a non custodial exchange and payment protocol. In this ecosystem you don't need to trust anyone because the rollovers ensures assets are under your control 100% ethereum level security is guaranteed.

BENEFITS:
low cost: it performs most of the operation including transfer settlement and trade off ethereum network, this makes consumption costs to be reduced drastically.

The liquid network is one of the sidechain based network that enables faster and more confidential bitcoin transactions.

It is a bitcoin sidechain it allows bitcoin to be moved between main chain and the liquid side chain through a verifiable 1-to-1 peg.

The primary purpose of liquid network is to improve the efficiency of the cryptocurrency trading market.

USES IF LIQUID:

• It is used for issuance of new asset, with it anyone can issue asset on liquid including security tokens, stablecoins and digital collectibles it enjoys the same confidentiality speed as liquid Bitcoin.
• It improve the confidentiality of Bitcoin transactions.
• It speed up faster bitcoin transaction.

EXAMPLE OF WAYS PEOPLE USE LIQUID INCLUDES:

• It minimize settlement risk.
• gaining asset tokenization.
• stablecoin issuance
• reducing front-run risks for large trade.

WHAT ARE LIQUID ASSETS?
Are issued asset offered independently on liquid. Liquid enables issuance of multiple asset on the same block chain. Issued assets can be used for various purposes including digital collectibles, reward points, security tokens, stablecoins, vouchers etc.

HOW DOES LIQUID WORKS?
It run by the liquid federation and this consist of group of leading exchanges, wallet providers, trading desks, payment processing services and other financial institutions no one has control over the network it's decentralized.
Anyone can run a liquid mode and verify the state of the network signing transactions generating blocks and securing a bitcoin by the Network.

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• To do this one must first of all download Metamask using play store. I used mobile phone so I downloaded Metamask for Android.

• then I set up my wallet, copying my retrieving keys and keep it safe.

• next is to Link my metamask wallet with polygon network

My phone app home screen

• I clicked on metamask app, when the app opens I click the lines by the upper left hand side 👇

• then I click on settings

• click on network

• net I clicked on add since polygon network is not there

• To get polygon rpc url, go back to your metamask account home screen and click on browser
• searching for polygon network

• scroll down when a page opens, search for how to add polygon to metamask

• Scroll down and copy the info there
  

• go back and paste it to add polygon network to metamask

• Hurray, I've successfully added it!!!

I search for polyscan block explorer on my Google browser
I then get all the details I needed for 25000000
By clicking on the search button then I input the amount of block as seen below 👇

• this what I got 👇

Block 25m will be created in the next 107days to come. You can see time is there, the current block and the remaining block.

FOR BLOCK 12000000
I did the same thing input the block number 12m as seen below 👇

• this is the result I got 👇

• the block was created 230days ago

_ the difficulty encountered shown

• THE PRICE OF MATIC THEN WAS 0.38
  All the pictures for question 4 are taken from

Conclusion:

ZK-rollups is relieving the ethereum block chain workload. It increases Ethereum more scalability and fast transaction confidentiality etc. The good side of it is while the liquid network on the other hand is being use in the Bitcoin block chain, this help in increasing it's efficiency in terms of speed, scalability security and privacy etc. The bad side of it is that it's federated block chain Making it a centralized platform.
I have connected metamask wallet to polygon as you have seen above, I have checked and found out polygon scan block explorer at different level and times 25m and 12m.
Thanks so much for thinking lectures, it's an opportunity for me to learn