Sidechains - Crypto Academy / S4W8 - Homework post for pelon53
1. Explain in detail the Sidechains with the use of ZK-Rollups.
SIDECHAINS
Sidechains are methods that allow digital assets from one blockchain to be utilized safely in other blockchain before returning to original blockchain. The congestion and scalability issues are faced by most of the blockchains aside from the lake of blockchain scalability is it is noticed in the proof-of-work consensus algorithm along with other factors which include the number of activities happen in the blockchain and so the transactions speed and scalability are affected by these congestions. One of the example of blockchain which is affected with such challenge is Ethereum blockchain.
SIDECHAINS WITH THE USE OF ZK-ROLLUPS
ZK-Rollups are zero knowledge rollups which belongs to layer 2 and it is a is a sidechain of Ethereum blockchain that offers solutions for the scalability problem associated with the blockchain. With the help of ZK-Rollups, the hundreds of transactions are rolled up in a single transaction. A technique named as Zero knowledge proof. Using this, the smart contract which is assigned to this task will validate and deconstruct all the transfers in one transaction.
ZK-Rollups also has a major hand in the reduction of cost common with some applications of blockchain which often times makes the platform unviable. ZK-rollups are under development in order to takle the scalability problems related to Ethereum.
WORKING OF ZK-ROLLUPS
The ZK-Rollups works in such a way that they process the computations off-chain and then sends them to Ethereum blockchain for batch by batch validation. This makes a transaction series to be verified by one validation transaction which after confirmation, adds the off-chain transactions to the main chain. This process is done by the formation of a cryptographic proof from ZK-Rollups which can either be SNARK or it can be STARK. The batches which are coming from ZK-Rollups are updated, validated and added to the main chain of Ethereum by the use of these cryptographic proofs.
MERITS OF ZK-ROLLUPS:
ZK-Rollups are more faster than Optimistic and Plasma Rollup.
Layer 2 scalability and performance are improved with each transaction that contains less data.
The number of transactions which are needed for validation by Ethereum main chain are reduced which makes the chain quicker and cheaper.
Every transactions which makes them not susceptible to frauds are not validated.
No time delay in transferring transactions from layer 2 to layer 1.
DEMERITS OF ZK-ROLLUPS
There is a difficulty in the computation of validity proofs.
The Initial setup of the ZK-Rollups encourages a centralized system.
There is a risk of blockchain being hacked while using Quantum computing.
2. Explain the Liquid Network side chain
LIQUID NETWORK SIDECHAIN
The liquid network sidechain is type of sidechain which is based on Bitcoin and it that ensures faster and private transactions and it allows for the issuance of digital assets at the same time. It is a strong federation project which was introduced by blockstream in 2017.
With the help of liquid network, the movement of bitcoin can be done through a variable one to one peg between mainnet and side chain of the Bitcoin. The liquid network is built so that the trades of Bitcoin can be facilitated in a faster manner. The authorised member institutions manage and own the platform.
The liquid network has the facility by which the largest transfer of assets can be done and that is why it excels its competitors. The network does not need to establish any trust with the bitcoin mainnet and the parallel network is safely secured by all member who trust each other.
The liquid network works in such a way that thr users of bitcoin can send their bitcoin to the Output address and the federation will look if the bitcoin is locked in order to avoid the problem of double spending. After confirmation, the users can utilize L-btc. During peg out, the Bitcoin of user would be ready for use after two confirmations in the liquid network.
FEATURES OF LIQUID NETWORK:
Rapid transactions: The transactions are faster. The bitcoin transfers on liquid are settled in 2 minutes by which traders can move funds rapidly between exchanges and their wallets.
Private transactions: The transactions of the liquid network are private which allows the details of transaction to be shown only to the involved parties and not to the third party. It is beneficial for traders who do not like public expose.
New asset Issuance: The liquid network allows the creation of new assets like security tokens, altcoins, reward points etc.
USE CASES:
There are some of the uses of liquid network which are discussed below:
Liquid Network is used in issuing new assets such as security tokens, collectibles, altcoins etc.
It is used in processing of faster block transactions. The block transactions are fast forwarded per minute so that speed can be boosted.
In more that one exchange, liquid network is used to manage asset.
The Liquid network is also known for faster block transactions processing.
3. Describe the steps to connect the Metamask wallet and the Polygon network wallet. Show screenshots
To connect the Polygon network wallet to Metamask wallet, the steps are given below. The steps are done by using the mobile version of Metamask wallet. The same procedure is applied for pc version as well.
• Open the Polygon network wallet and on the first page of the wallet, click on the Polygon wallet named box.
• On the next page, click on the WalletConnect option.
• Select the mobile option and then click kn Connect.
• From the different wallets, select the Metamask wallet and click on Just once and your wallet will open.
• After reaching on the Metamask wallet, the pop-up appears. Click on the Connect option.
• On the next pop-up, click on Sign.
• The message of signed will appear which means the wallet has connected. Now, click on the three horizontal lines on the top left corner.
• To access the wallet, Click on Browser.
• After clicking on browser, the page will get navigates to the browser and the connected Metamask is shown.
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.
Block 25,000,000:
Now for this task, go to the website of PolygonScan. In the search bar, type 25000000 and click on search button.
The details generated of the searched block are shown below.
Block : 25000000
Target Date : Fri, Feb 25, 2022
Time : 2:21:16 GMT+0530 ( According to Indian standard Time)
Block 12,000,000:
Now, same as like above block, go to the search bar and type 12000000 and click on search.
The details of the block which are generated are shown below.
Block : 12000000
Timestamp of block: 227 days 6 hrs ago
Date : March 14, 2021
Time : 09:35:48 AM +UTC
Price of matic: $0.38
CONCLUSION
The Sidechains are the methods by which the digital asset of blockchain are utilized safely in another blockchain before returning to the original blockchain. The sidechains are much useful in blockchain industry and because of Sidechains, the blockchain problems have been improvised.
Through the lecture of professor @pelon53, I got much information about the Sidechains and this lecture has proven much knowlegeable and informative for me. I am thanking to our professor for making this insightful and wonderful lecture.
#club5050 😀