[SIDECHAIN]-Steemit Crypto Academy | S4W8 | Homework Post for @pelon53
SIDECHAIN
A sidechain is a blockchain that is linked to the main blockchain in some way (in Liquid Network case to the Bitcoin blockchain and in ZK-Rollups case to Ethereum blockchain). The parent blockchain and sidechains are two-pegged. This makes it possible to interchange digital assets between the two networks in a seamless manner.
Transferring funds between two blockchains (and vice versa) is done as follows:
A user sends a specific amount of coins to an output address; the coins are locked (or frozen); the transaction is complete; and the confirmation is sent to all chains. Following a time of waiting, a user can use money on the sidechain (for security reasons).
SIDECHAINS WITH THE USE OF ZK-ROLLUPS
ZK-Rollups is an Ethereum sidechain with a layer 2 construction that aims to solve scalability issues in the blockchain.
It's a "zero knowledge proof" this is used on the Ethereum mainnet to record the authenticity of blocks. During the validation process, ZK Roll-ups decrease computing and storage resources. This is because a transaction requires no prior knowledge of the data. A single transaction can have hundreds of transfers tied to it, and the smart contract will simply verify the transaction.
The transactions and relayers are the two types of users in ZK-Rollup. The transactors are those who produce and broadcast network transfers, with the transfer data including the source and destination addresses, the transaction figure, a nonce, and the network fee.
An index version of the address would be created, reducing the amount of processing power required for the transaction. A deposit or withdrawal is made based on the transaction's value, which can be more or less than zero.
The data from the transaction will be recorded in two Merkle Trees by the smart contract formed from the transaction: the money in one and the addresses in the other.
Relayers, on the other hand, collect a higher number of transfers and roll them up into a single file. They're also in charge of creating the hash known as the SNARK proof. This SNARK proof compares and contrasts wallet values before and after transfers and notifies the mainnet in the form of a verified hash of the changes.
THE ZK-ROLLUPS USER EXPERIENCE
A lower transaction fee would be imposed to all users of decentralized applications that employ the ZK-Rollup method. A substantial amount of computational power is frequently required to generate a zero knowledge proof. In a decentralized system, users can benefit from higher transfer speeds. Due to the SNARK proof's delay, the latency of block confirmations has also increased.
THE ZK-ROLLUPS SECURITY
ZK-initial Rollup's setup is presumed to be in a trusted state, although this trust cannot be validated. At the first stage of trust, a small group of developers will become subject matter experts. By preventing decentralization and persuading developers to change code or share vulnerability information, this increases the potential of social engineering hacking attempts. We Quantum computing also poses a danger to its capacity to crack ZK-rollups since it is more likely than current cryptographic protocols to "guess" an accurate SNARK proof hash.
ADVANTAGES
•The transaction costs imposed on each user transfer will be reduced.
•ZK-Rollup has been demonstrated to be faster than plasma and Optimistic Roll-up.
•There is no demand for FG (fraud game) verification, which in the case of Optimistic Roll-up typically delays withdrawals.
•Each transaction has less data. This improves the scalability of the system.
•Blocks are computed in a manner known as the 'parallel computing model,' which promotes decentralization, with ZK-Rollup.
DISADVANTAGES
•It encourages centralization in the early stages.
•Because computing zero knowledge is difficult, data optimization is essential for efficiency.
•Due to quantum computation, there is a quantifiable level of hacking threat.
•Because the security level of ZK-Rollup is unknown, it is only an assumption.
ZKSYN
This is the first practical platform for the algorithm ZK-Rollups. It has been around since the year 2020. Despite the fact that it is young, it has already proven to be a viable answer to future blockchain issues. The ZK Rollup with zkSync has no upper limit on the amount of transactions it can securely manage on layer 2 compared to any other technique of scaling the Ethereum Blockchain. With a transaction pace of over 2000 transactions per second, all protocols or DApps may easily move their capital and migrate from L1 to L2. The project is completely open-source, and its scalability beats that of rival methods.To work, Zksyn is commonly connected to the Ethereum Metamask.
THE LIQUID NETWORK SIDECHAIN
The Liquid Network is a federated sidechain for Bitcoin that enables for the creation of digital assets and faster transactions.In 2017, Blockstream presented a powerful federation concept.
A Strong Federation is a group that acts as a mutually-incentivized protocol adapter between a "anchor chain" and one of its sidechains to ensure the forward development of a sidechain. Participants create a Byzantine-robust smart contract utilizing cryptographic techniques and secure hardware, in which each "functionary" is financially rewarded for acting in the network's best interests based on mutually agreed-upon standards.
The liquid network provides support for the liquid bitcoin (L-BTC). The value of this Liquid Bitcoin is the same as that of the original Bitcoin (BTC). Peg-in is the process of transferring coins from the Bitcoin blockchain to the Liquid Network and back.
Blockstream unveiled the Liquid Network development in 2017. This powerful federation is in charge of sidechain development by acting as a protocol adapter between sidechains and their anchor chains. Because the sidechain is self-contained, those who engage in it are held responsible for its security.
HOW IT WORKS
Bitcoin users can transfer their bitcoins to an output address, which is a separate address from their own. The federation will lock Bitcoin at this address to prevent double spending. The user can use his L-BTC after receiving 102 confirmations on the Bitcoin network.
After two confirmations in the liquid network, a user's BTC would be ready for usage during peg-out (that is, converting or sending the L-BTC back to a BTC wallet in the parent chain), the time for this procedure is totally dependent on the network's condition.
THE FEATURES OF THE LIQUID NETWORK
1.PRIVATE TRANSACTIONS:The transactions that took place on Liquid Network can be viewed by anyone. In contrast, the project's designers provided a private transaction (PT) function.
Private transactions aim to give users additional privacy by hiding the amount of a transaction from anyone who isn't involved in transaction processing. Traders who don't want their strategies revealed can use PT, according to official Liquid documents, and the transaction amount will be hidden.
2.DIGITAL CURRENCY CREATION: Liquid Network allows anyone interested in cryptocurrency to develop their own. The platform allows users to create digital collectibles, tokenized fiat, altcoins (alternative cryptocurrencies to Bitcoin), attested assets, and reward points. A marketable financial instrument can also be represented by a security token. Liquid provides the platform and tools for creating new assets, but it is not responsible for ensuring that the assets are verified.
THE USE CASES OF THE LIQUID NETWORK
The Liquid Network has four primary uses. These are the following:
•It's used to create and distribute new digital assets. The Liquid Network allows for the creation of new assets such as stablecoins, security tokens, and collectibles.
•It's used to make Bitcoin transactions more secure. All parties involved, including third parties, are given access to transaction details. This raises the level of transparency.
•It's used to process transactions: The liquid network is notable for executing block transactions quickly. To increase speed, the block transactions per minute are fast forwarded.
•It is used to handle assets on many exchanges. Users of the Liquid network can access their portfolio via the API protocol. Several other exchanges allow them to handle their digital assets.
ADVANTAGES
1.Transaction confirmation times are lower and the number of transactions per second is higher.
2.Funds transfer across exchanges, market makers, and various wallets is almost instantaneous.
3.Liquid Network has the potential to improve efficiency.
4.Users of the Liquid Network can verify evidence of various exchange-backed asset reserves through verifiable audits.
5.Secret transactions are more private than Bitcoin transactions. Transaction analysis tools are also known to be ineffective against Liquid Network.
DISADVANTAGES
1.The possibility of a majority of Bitcoin users migrating to the sidechain poses a particular threat to miners, who profit from network fees as well.
2.The fact that the Liquid Network is a private network run by a structure that requires trust is a huge disadvantage. This model goes against the decentralization principle.
3.The sidechain will never achieve the same level of security as Bitcoin.
STEPS TO LINK POLYGON WALLET TO METAMASK WALLET
To connect the Polygon network wallet to Metamask, follow the steps below. The steps I'll discuss are for the wallet's Android version.
1.Click the link to get to the Polygon network wallet (https://wallet.polygon.technology/)
2.On first page, select the Polygon wallet
3.Click on WalletConnect if you have installed the wallet app or the click on Metamask to use the browser wallet
4.Click on the connect tab
5.Select the wallet to connect to (metamask)
6.Connect by clicking the connect button. On the following page, click sign in as well.The wallet has established a connection.
7.The wallet has connected to Metamask in order to use the polygon network. To go to the wallet, go to the Metamask interface and pick browser from the menu.
This opens the browser and displays the connected metamask. From here, the appropriate operations can be carried out.
WHEN WILL THE 25,000,000 BLOCK BE CREATED ACCORDING TO POLYGONSCAN EXPLORER
I went to https://polygonscan.com to check when the 25 million block would be generated:
The estimated time was displayed after I put 25,000,000 into the search bar.
Block 25,000,000 will be created on this date,
According to Polygonscan, the 25,000,000 block will be created on Thursday, February 24, 2022, at about 14:23:18 GMT-0800 [Pacific Standard Time]. This adds up to 119 days, 11 hours 35 minutes 23 seconds.
THE INFORMATION FOR BLOCK 12,000,000 CAN BE FOUND HERE
This block was created 228 days, 1 hour ago on March14, 2021, at 09:35:48 AM +UTC. It has 14 transactions and is 5,826 bytes in size. At the time, the matic cost is $0.38.
CONCLUSION
In the blockchain industry, sidechains are extremely useful. They provide numerous advantages, including increased transaction speed. They also come with several additional fantastic features. The existence of sidechains has improved blockchain operations in general. As a result, sidechain activities help to solve scalability issues to some extent.
#club5050 😀