Sidechains - Crypto Academy / S4W8 - Homework post for pelon53
Hello fellow steemians this is my assignment post for professor @pelon53
- Explain in detail the Sidechains with the use of ZK-Rollups.
We could simply explain a side chain to be an alternative blockchain linked to another blockchain often the parent block chain or the main chain that come up with their own protocols, consensus mechanism and pattern to run their own blockchain and operate independently
The sidechain is a blockchain built-in compliance and alongside Ethereum blockchain so we could say that the sidechains are ethereum compatible blockchains which operate independently and employ's it's own consensus mechanism Like the Proof of Authority, Proof of Stake e.t.c and different byzantine fault-tolerant methods to allow much faster scalability, consensus, and good security.
Being Ethereum blockchain compatible the Eth tokens are interoperable in the Sidechain blockchain, Assets can be transacted in the sidechain much faster and for a much lower transaction fee in the sidechain than in the main chain so users tend to move asset to the sidechain and perform transactions off-chain after multiple transactions have been carried out assets can be moved cross-chain which insinuates sidechains interoperability. The interoperability of the sidechain is mainly factored by the Tokenbridge which is a bridge built on ethereum to allow the transfer of assets between multiple blockchains in the ethereum ecosystem.
Now the Zero Knowledge was a method adopted in layer 2 to improve scalability and how it works is it encompasses multiple transactions in one and are confined as one hence reducing congestion in the blockchain and allowing more room of other transaction to be carried out in the blockchain. Zero-Knowledge's sole purpose in the layer 2 sidechains is to bundle up transactions and confirm them as one.
After processing and rolling up transactions the information/transaction is sent back on-chain or to the main chain or layer one where it is confirmed and added to blocks hence validating the transactions rolled up and because most of the transactions are performed off-chain a much lesser transaction fee is being paid
An example of Zero-Knowledge is the ZK sync
ADVANTAGES OF SIDECHAINS
- Lesser transaction fee
- Faster scalability
- Frees up room in the main chain hence transactions are processed faster
- Transactions are stored on chain to ensure transparency
DISADVANTAGES
- ZK requires high computing power to operate
- Security is not as secure as mainchain
- One has to wait for transaction to be confirmed on-chain before a transactions is deemed valid
Explain the Liquid Network Sidechains?
The lightning network is a network specifically designed to handle the day-to-day microtransaction, it is built on top of the bitcoin blockchain which offers a solution to the reoccurring bitcoin scalability issue. The sole aim of creating the lightning network in 2015 was to reduce the congestion on the bitcoin blockchain by recording transactions off-chain so as to give for more transactions on the bitcoin blockchain network.
The Lightning Network is a Layer 2 solution that transacts off-chain but still maintains the bitcoin network security to enable way much faster validations and exchange of assets for a much lesser transaction fee and wait time, each transaction in the lightning networks begins and ends in the bitcoin blockchain. Transactions in the the lightning network occur via Lighting channel and is performed by lightning nodes
The lightning channel is also a component of the lightning network which is is an off-chain environment where micro-transactions are performed between users which are secured by settlement on the blockchain and also established by both parties depositing a certain amount called a funding transaction on the blockchain network. Funds exchanged in this channel are not broadcasted to the blockchain and this allows for thousands of transactions hence enables incredible scalability, when both users are done transacting they sign a closing transaction that accurately balances each user's accounts and this last transaction is mined and recorded on the blockchain.
The lightning node could be described perfectly as a component that makes up the lightning network, the lightning node is responsible for validating payment of a particular individual transaction, and that transaction only along with does linked to it, unlike the traditional node that has to go around the whole network.
ADVANTAGES OF LIGHTNING NETWORK
- In the lightning network users are kept anonymous
- Faster scalability
- Creates room in the main blockchain by allowing other users to transact off-chain
- Secure
DISADVANTAGES OF LIGHTNING NETWORK
- Closing and opening transaction have to be performed on-chain hence time wasting
- Users are kept anonymous
- One has to wait for on-chain confirmation of off-chain transactions
Describe the steps to connect the metamask wallet and the polygon network wallet?
Assuming a user already has his metamask installed on chrome and already set up
- Step one would be to go to the polygon wallet page and select the connect wallet option o the top right corner of the screen
- The previous step would take you to another page where you would be asked to select the wallet you want to use. select the metamask wallet
- If you are using the metamask chrome extension like I am, you will be prompted to confirm the connection and sign the linking. after which your metamask will be linked to the polygon platform and can be used for transactions back and forth.
- For confirmation, your address will appear on the polygon wallet page as shown pictorially below
According to the polygon scan block explorer, when will block 25,000,000 be generated? Show screenshot. Explore the 12,000,000 blocks at that time, what was the price of the matic? Show screenshot?
The polygon scan block explorer has a block countdown feature where you can input a block number and it will tell you when in exact date and time when the block will be generated. All you need do is type the block number in the search bar and it will tell you when the block will be generated
The polygon scan is at a current block number #20787881 and will validate block 25,000,000 in 107 days and 6 hours from the moment of writing this post
Explore the 12,000,000 blocks at that time, what was the price of the matic? Show screenshot?
The 12 millionth block in the polygonscan was validated on the 14th of March 2021 by this address "0x7fcd58c2d53d980b247f1612fdba93e9a76193e6" in 6 secs. The price of Matic during that time was at $0.38 / MATIC and the validator earned a reward of 0.00877199352 MATIC. the block had a Hash
0x54c6805f441801ea05620f26950ca70c401e1642ab27f76d5097f9f500689965
and a parent has
0x3592bd9a6a5ad7f855d5c1fca02c8d4ac8b5e24f99af3c6706beba0b37222ce7
CONCLUSION
The importance of sidechains on main chains cannot be river emphasized, they provide an alternative to the main chain, the side chains offer a much lesser transaction fee with much faster scalability, and they move some of their transactions off-chain helping to clear up space in the blockchain a reduce clog hence the on-chain transactions tends to be faster with the help of side chains.
cc: pelon53