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Bitcoin Sharding

Scaling Bitcoin Workshops - Transcripts

Scaling Bitcoin Workshops - Transcripts

I am going to talk about blockchain sharding. This is one of the scaling solutions that I like the most. I have done the most work on it. In case you don't know who I am, I am a researcher mostly with the ethereum project. Basically the basics of sharding is that in non-sharding, every node does every validation. In a sharding solution, nodes hold a subset of the state, and a subset of the blockchain. By state we mean UTXOs. Instead of everyone redundantly doing the same work, we're going to share the load but still have an only economic assurance even though we're not going to validate every transaction. I am going to give a high-level overview. The details would take too long. We can get orders of magnitude of transactions per second if everyone isn't validating everything. We have authentication from the genesis block using proof-of-work. It's all proof-of-work from the genesis block. Same trust model. There's a clear appeal. There are challenges to sharding the blockchain. We need to assign miners to shards so that miners from one shard don't mine from another to produce invalid blocks. So we need to sample the mining power, which presents a problem. We need to split the state space into shards, we need to process transactions within shards, and then deal with attack vectors where not everyone is checking everything. Securely sampling mining power needs to happen. We can do it, but it means changing the block header. The key to doing this is non-outsourceable proof-of-work. Basically is proof-of-work where the private key from the coinbase has to be on the machine that produces the proof-of-work. You're required to sign a nonce before in the blockheader, so it wouldn't just be that the coinbase has a private key the mining pool had, you have to have the private key Continue reading >>

Scalability - Blockchain Recent Scaling Proposals : (sharding, Blocksize , Segwit, Ghost, Lightning, Multichains, Sidechains, Dags) - Bitcoin Stack Exchange

Scalability - Blockchain Recent Scaling Proposals : (sharding, Blocksize , Segwit, Ghost, Lightning, Multichains, Sidechains, Dags) - Bitcoin Stack Exchange

Blockchain Recent Scaling Proposals : (Sharding, blocksize , SegWit, GHOST, Lightning, multichains, sidechains, DAGs) Peg communicates between sidechain & BC and is the mechanism for exchange rate between assets. It is possible for assets can be imported from and to other chains. Allowed to use in side chain and transfer back and forth between chains They require mining, reward could be TX fee or coins, many possible implementations, Raiden/Lighting are just payment channels, not sidechains After successful transaction, the coin signifying transfer between chains will be destroyed. The actual coin is not actually transferred, but locked on mainchain while equiv coins created on sidechain. To go back to original coin, must place back into secondary wallet to get primary unlocked. A 2 way peg exchanges the same coin, removing the need for altcoins. Side Chains can replace altcoin necessity, also possible to remove/create at will A downside is it creates centralized access, trusted 3rd party : NOT GOOD Benefit of sidechains are they enable developers to safely develop new applications without a risk. SPV proof : A mathematical proof providing a way where you can determine that a particular transaction was in a block in the block chain without requiring the entire block chain to be downloaded. Only have net payments on chain and all incremental payments are kept in channels. Relationships are critical to LN, overhead expensive to keep setting up TX ntwrks. Trust is the only thing needed to fund transactions. Need a liquid network: Both sides offer deposit, which limits how other people can use it. Possible because not all transactions are random transactions, recurrence paying friends ie the same person. It is not feasible to connect all nodes, must have some reused paymen Continue reading >>

How Sharding-based Blockchains Could Handle More Transactions Than Visa

How Sharding-based Blockchains Could Handle More Transactions Than Visa

How Sharding-Based Blockchains Could Handle More Transactions Than Visa While Blockchain brings a paradigm shift to many businesses and applications, scalability still remains a problem. When it comes to facilitating transactions, advocates of Blockchain technology often point to the fact that transactions come with a built-in, fail-proof layer of security, thanks to the inherent nature of the ledger on which the transactions are recorded. Because of this, Blockchain is being heralded as the future of secure and efficient transactions, as it could eliminate the need of trust on any central party for validation and bookkeeping. While Blockchain certainly brings a paradigm shift to many businesses and applications, theres just one minor problem: scalability. This problem is nothing new. A quick Google search on the topic of Blockchain scalability produces hundreds of results from forums, websites, and blogs that all describe the same problem. While cryptocurrency is enjoying more and more mainstream adoption, it does not process transactions fast enough for it to be used on a massive, or even near massive, scale. As recently as June, Bitcoin , one of the most prominent cryptocurrencies so far, could only process a maximum of seven transactions per second (tps) under optimal conditions, with more realistic numbers looking like two to three, compared to PayPals 115 and VISAs 2,000 tps. As revolutionary as it has proven to be so far, if Blockchain technology is to re-shape our financial system at its core, it must be capable of scaling out and conducting at least as many transactions per second as networks like VISA do today. There are a number of promising projects that could help Ethereum scale to match the transaction rate of VISA , including Plasma and Raiden, but these Continue reading >>

Assembly:bitcoin - 34c3_wiki

Assembly:bitcoin - 34c3_wiki

email: [email protected] or [email protected] / jabber: [email protected] / Twitter: @emzy @rootzoll A place for all topic Bitcoin & Blockchain. We will have the Bitcoin-Sofa again for you to chill out and ask us all the questions. Bitcoin Mining At Congress , Dogecoin Altar Planned sessions will be announced daily and will be on display at the assembly. Speak to @rootzoll (dect 8674) if you like to give a talk or demo. - big Beamer as Main-Presenting Area for Sessions and Stiff - Audio-Box and Microphone- small LED-Beamer+RasberryPi for BitcoinRollercoasterGuy- small/crappy LED-Beamer + USB-Stick for Logo-Slideshow- 5-Port Switch + LAN-Cable for Table (just in case)- 2x AntMiner S5 (not for running attacks on testnet... or?)- 4x Raspberry Pi 3 Model B SBC for lightning network experiments A place for all topic Bitcoin & Blockchain. We will have the Bitcoin-Sofa again for you to chill out and ask us all the questions. We will start every day at 3pm/15Uhr at the assembly - with a satoshi square (peer2peer trade) and small demo/info sessions. Things we plan to have for you at the assembly A Dogecoin Altar (for your spiritual needs) Continue reading >>

Part One Of Ethereum's Sharding Roadmap Is Nearly Done

Part One Of Ethereum's Sharding Roadmap Is Nearly Done

Part One of Ethereum's Sharding Roadmap Is Nearly Done Jan 26, 2018 at 17:10 UTC|UpdatedJan 27, 2018 at 02:39 UTC Ethereum is getting closer to deploying new technology that would allow the network to scale, its founder said. "It seems like part one of phase one is getting something like being already done," Vitalik Buterin said in a developer meeting. The technology, known as sharding,attempts to split the ethereum blockchain's data into more manageable parts. Pointing to an initial spec posted on Github, Buterin said: "It's theoretically a good spec of what minimal sharding is going to look like." Ethereum is under pressure to keep up with the rising popularity of the platform, which has led to slower transaction times and high processing fees. The congestion has already led some token-based projects to build atop other blockchains such as Stellar . Buterin went to state that the next phase of the four-stage scaling proposal will be completed in "a month and a bit," adding that development work will likely circulate on stateless clients, a type of ethereum software that does not need to process the complete history of the platform. "Then from there we're going to try and shard it into a working test, a kind of test network," the ethereum founder said. In the meeting, Buterin also reflected on Casper, ethereum's new consensus protocol that is currently in testing. As detailed by CoinDesk , the test network has been derailed by issues with the software it deploys. However, Buterin said that in spite of hiccups, the core of the project is sound, or as he put it: "the Casper aspect of Casper... is totally successful." Still, with the code yet to be adapted for use across different ethereum software clients, he acknowledged: "That's on a bit of a back burner for now." The Continue reading >>

Ether Rising, Up 30% In A Week

Ether Rising, Up 30% In A Week

January has been a pretty slow month for all cryptocurrencies. The majority of them have not made a recovery from the big slump two weeks ago. Bitcoin, as usual, has commanded the big selloff, but Ethereum has remained relatively resilient to downward pressures and has posted solid gains over the past couple of days. Ethereum has now garnered the attention of mainstream media, such as Forbes , which recently reported about its upward momentum. A major market correction was expected, and it has been surmised that such corrections are a naturally occurring thing for cryptocurrencies at this time of year. According to Livecoinwatch.com , which includes South Korean markets, Ethereum is up over $1,200 from a low of $930 this time last Monday. This represents a weekly rise of 30%. The same cannot be said of Bitcoin, which has conversely shown very little gain from its price this time last week. The 24 hour trade volume for ETH has been around $4.5 billion, with South Koreas Bithumb being the top exchange with over 10% of that trade in Korean won. According to NewsBTC editor Joseph Young, who was also quoted by Forbes, the rise is in line with an increase in transactions on the network: The increase in the daily transaction volume of the Ethereum network reflects the exponential growth rate of decentralized applications launched on top of the Ethereum protocol. Applications like EtherDelta, 0x, Radar Relay, and CryptoCribs have gained a significant amount of active users over the past few months. This week, $1.6 billion cryptocurrency trading platform Coinbase CEO Brian ArmstrongpraisedCryptoCribs, a decentralized Ethereum-based Airbnb-like platform with a non-ICO model. As the number of ICOs and decentralized applications grows, the demand for Ethereum will follow. It is th Continue reading >>

What Is Sharding In Blockchain | Sharding Explained In Detail

What Is Sharding In Blockchain | Sharding Explained In Detail

Home > Blockchain > What is Sharding in Blockchain | Sharding Explained in Detail What is Sharding in Blockchain | Sharding Explained in Detail Just before we dive into the nuances of Sharding & try to take the bull by the horns i.e. understand what is Sharding in blockchain, let's first try to understand the need for it. The Blockchain evangelists & enthusiasts believe that Blockchain technology has the potential to shape a world with no disparity, no centralized authorities, no unnecessary intermediaries and so on. To a great extent that does seen true, as being the Blockchain enthusiast myself, I also foresee Blockchain playing a pivotal role in the times to come. Having said that, relatively the technology still is in its infancy and requires a lot of advancements and innovations, for it to become the a power to reckon with. Some of the biggest pain points that the Blockchain technology is dealing with right now are: The Bitcoin & Ethereum Blockchains are capable of handling 3-7 & 12-30 transaction per second respectively. It doesn't take a scientist to learn that the aforementioned figures are anything but impressive, when pitted against the likes of Visas and MarterCards of the world. As we speak, the Blockchain community around the world is working tirelessly to overcome Blockchains current shortcomings. Sharding is one of those techniques that is being tried upon, in order to deal with the scaling issues that Ethereum & Bitcoins Blockchain is facing. Currently Ethereum & Bitcoin uses the Proof of Work (PoW) protocol for validating all transactions that take place on their networks. Even though PoW can be looked upon as the most secure and fool proof way of transactions validation, it has its fair share of drawbacks. In the current state of Ethereum network, its Continue reading >>

Blockchains Dont Scale. Not Today, At Least. But Thereshope.

Blockchains Dont Scale. Not Today, At Least. But Thereshope.

Blockchain Engineer. I have a passion for understanding things at a fundamental level and sharing it as clearly as possible. Blockchains dont scale. Not today, at least. But thereshope. The first Bitcoin paper was first released in 2008. My excitement about the potential of blockchain technology has been building ever since. Decentralized digital currency, once just a far-fetched goal, is finally making inroads into the mainstream. While thats exciting on its own merit, Im personally most excited about the potential for decentralized applications. Financial exchanges, prediction markets, and asset management platforms all carry enormous potential. The trustless systems supporting them are no less intriguing; identity verification systems, smart property, censorship resistant social platforms, and autonomous structures and governance models like DAOs . The most disruptive use cases probably havent even been dreamt up yet. But this dream still remains a dream for the foreseeable future while a few early enthusiasts and entrepreneurs are experimenting with building such applications, theres still a big missing piece that prevents us from seeing these applications come to fruition: scalability. Blockchains, as it stands today, are limited in their ability to scale. Thats not to say that this will be the case forever, but its definitely true today. In fact, Id argue its one of the biggest technological barriers we face with blockchain technology today. Its quickly become a very active area of research among researchers in the community and cryptocurrency in general. Currently, all blockchain consensus protocols (eg. Bitcoin, Ethereum, Ripple, Tendermint) have a challenging limitation: every fully participating node in the network must process every transaction. Recall that Continue reading >>

Why Scaling Bitcoin With Sharding Is Very Hard

Why Scaling Bitcoin With Sharding Is Very Hard

Why Scaling Bitcoin With Sharding Is Very Hard Previously published as a reply on Reddit. Why arent we as a community talking about Sharding as a scaling solution? It seems to me that sharding would be the ideal solution for scaling bitcoinup indefinitely, but all I keep hearing about is lightning and sidechains,which are sort of bolt-on afterthoughts operating a level above bitcoin. Willexisting wallets work smoothly with lightning? dunno, but I doubt it. Andanyway, they do nothing to help bitcoin itself scale up, or to reducedisk/bandwidth requirements of individual nodes. In a system where everyone mostly trusts each other, sharding works great! You just split up the blockchain the same way youd shard a database, assigning miners/validators a subset of the txid space. Transaction validation would assume that if you dont have the history for an input yourself, you assume that history is valid. In a banking-like environment where theres a way to conduct audits and punish those who lie, this could certainly be made to work. (I myself have worked on and off on a scheme to do exactly that for a few different clients: Proofchains ) But in a decentralized environment sharding is far, far, harder to accomplish Theres an old idea weve been calling fraud proofs, where you design a system where for every way validation can fail, you can create a short proof that part of the blockchain was invalid. Upon receiving that proof your node would reject the invalid part of the chain and roll back the chain. In fact, the original Satoshi whitepaper refers to fraud proofs, using the term alerts, and assumed SPV nodes would use them to get better guarantees theyre using a valid chain. (SPV as implemented by bitcoinj is sometimes referred to as non-validating SPV) The problem is, how do y Continue reading >>

Ethereum's Vitalik Buterin Deletes Tweet About Sharding, Community Buzzes

Ethereum's Vitalik Buterin Deletes Tweet About Sharding, Community Buzzes

Subscribe to the Bitsonline YouTube channel for great videos featuring industry insiders & experts With the specter of congestion on the Ethereum network growing, any updates or comments pertaining to sharding will unsurprisingly cause a stir. Thats precisely whats happened as Buterin just tweeted, and thereafter deleted, a new remark on a sharding testnet potentially being publicly available soon. In a threaded conversation about Twitter competitor leeroy.io, Buterin wrote: I hope they can participate in the sharding testnet soon when its ready; theyre one of the first apps that could easily benefit from it :) Buterin wasted little time in deleting the comment, though, for reasons not immediately clear. Presumably he retracted the statement to tamp down on any unrealistic hype around sharding, which is likely still a ways off. Conversely, it took little time for Ethereum forums like r/ethtrader to burst with users acknowledging theyd seen the tweet with their own eyes. More have heard of sharding than know what it is. Its important to note here that sharding is not some monolithic system, but rather a series of ideas that are being experimented with. As the GitHub Sharding FAQ explains, though, there is a general gist of what sharding could look like when completed: For example, a sharding scheme on Ethereum might put all addresses starting with 0x00 into one shard, all addresses starting with 0x01 into another shard, etc. In the simplest form of sharding, each shard also has its own transaction history, and the effect of transactions in some shard k are limited to the state of shard k. One simple example would be a multi-asset blockchain, where there are K shards and each shard stores the balances and processes the transactions associated with one particular asset. I Continue reading >>

What Is Sharding? The Merkle

What Is Sharding? The Merkle

There are quite a few interesting aspects of the Ethereum ecosystem most people are still confused about. The Ethereum developers have been talking about sharding for quite some time now, yet few people even knowwhat this means. Now is a good time to look into this matter and try to make sense of the concept of sharding. It is quite an interesting way to go about validation portions of the Ethereum blockchain, to say the least. Sharding Will Change The Way The Blockchain is Validated Before we can explain what sharding is, one needs to know how the Ethereum blockchain is validated right now. In the current form, all nodes on the network store and process all transactions taking place on the network. This is quite a labor-intensive way of going about things, even though it adds additional security to the ecosystem as well. In terms of scaling, this way of validating the Ethereum blockchain leaves much to be desired, though. To combat this problem, the developers have come up with a way to alleviate these problems through an alternative form of validation. Referred to as sharding, a small subset of network nodes will validate every single transaction. This means the Ethereum blockchain will remain secure as it has always been, yet it will allowfor better scaling. There are quite a few different sharding proposals as well, although it is difficult to find one that checks all of the right boxes. To be more specific, sharding as part of the Ethereum ecosystem is designed to process thousands of transactions every second without forcing all nodes to store terabytes of state data. Achieving this goal is not easy by any means. After all, the developers want to make sure people can use both cheap and expensive hardware to validate transactions as node operators. By introducing Continue reading >>

Sharding Faq Ethereum/wiki Wiki Github

Sharding Faq Ethereum/wiki Wiki Github

Currently, in all blockchain protocols each node stores all states (account balances, contract code and storage, etc.) and processes all transactions. This provides a large amount of security, but greatly limits scalability: a blockchain cannot process more transactions than a single node can. In large part because of this, Bitcoin is limited to ~3-7 transactions per second, Ethereum to 7-15, etc. However, this poses a question: are there ways to create a new mechanism, where only small subset of nodes verifies each transaction? As long as there are sufficiently many nodes verifying each transaction that the system is still highly secure, but sufficiently few that the system can process many transactions in parallel, could we not use such a technique to greatly increase a blockchain's throughput? What are some trivial but flawed ways of solving the problem? There are three main categories of easy solutions. The first is to simply give up on scaling individual blockchains, and instead assume that users will be using many different altcoins. This greatly increases throughput, but comes at a cost of security: an N-factor increase in throughput using this method necessarily comes with an N-factor decrease in security. Hence, it is arguably non-viable for more than small values of N. The second is to simply increase the block size limit. This can work and in some situations may well be the correct prescription, as block sizes may well be constrained more by politics than by realistic technical considerations. But regardless of ones beliefs about any individual case such an approach inevitably has its limits: if one goes too far, then nodes running on consumer hardware will drop out, the network will start to rely exclusively on a very small number of supercomputers running Continue reading >>

Ethereum Jumps On Rumors Of Sharding Testnet Launching Soon

Ethereum Jumps On Rumors Of Sharding Testnet Launching Soon

Ethereum Jumps on Rumors of Sharding Testnet Launching Soon Ethereans are full of rumors today regarding a deleted tweet by Vitalik Buterin which seemed to imply a sharding testnet might be launching soon. Weve asked Buterin whether theres any update on sharding and whether a testnet launch is to be expected. Well update if a response is received. For now have a look at the tweet: Theres quite a few ways to interpret that tweet, but the main way it is being interpreted is a suggestion that sharding development has reached a stage where a testnet could be expected soon, or soon-ish. We find that somewhat difficult to believe because the specification reached the good-enough stage only last month. But they do appear to be moving faster than expected and Buterin said at the time:On the Sharding side, quite a lot of work has started. Moreover, in a research update Nate Rush does appear to portray a picture of hands on code testing of sharding part one, but the problem he faced and seemingly resolved shows it is all still at a very early stage. He had apparently found a bug in regards to fork rules with the code not doing what it should be doing. Then, he apparently found a solution to it too. So consensus rules, which is the core part of sharding, have not yet been fully honed down. On the other hand, it does seem that sharding is no longer just words and design architecture, but has now taken a code shape of sorts. A testnet, therefore, might perhaps not be that far away, but if this all reaches a stage where it can be implemented this year, that would be a surprise, at least to us. We expected proof of concepts next year. That estimate, of course, has to be revised, but we still dont expect implementation before 2019, yet it does seem Buterin and some of the eth team has Continue reading >>

What Are Ethereum Nodes And Sharding?

What Are Ethereum Nodes And Sharding?

Angel Investors, Startups & Blockchain developers... In this guide, you will learnWhat are Ethereum Nodes And Sharding? If you have been active in one form or another in cryptocurrency for the last 1 year then you would know that there has been one issue which has plagued both bitcoin and Ethereum: Scalability. Bitcoin has somewhat addressed this issue by activating Segwit and by hard forking into Bitcoin Cash . Ethereum, however, is trying to solve this issue in a different way. One of the many protocols that they are looking to activate, as they go into the next phase of their growth, is sharding. Before we understand what that means, we need to have a thorough understanding of networks and nodes. What are nodes, networks, and parameters? Lets understand what the concept means by using simple day-to-day activities. (Before we begin, credit to 3dBuzz for the wonderful explanation.) This box takes in inputs, performs some sort of operations on them, and then gives an output. This box is a node. Keep in mind, nodes are not exactly boxes, we are just using a hypothetical case here. A network is a collection of these nodes which are interlinked to one another. Parameters are the rules that the nodes are bound by. That, in essence, is what nodes and networks are. Now lets check out some simple day-to-day activities explained via nodes and networks. Lets see how a simple paper shredder works. You are using three nodes: The paper the shredder and the.well shredded stuff. These three nodes make up the Shredding network. Lets have some more fun with this. Till now, we have assumed that nodes take in only one input. What if they take more than that? Lets take the example of a toaster. A toaster takes in two inputs: Remember one thing, a toaster cant work if even one of its inpu Continue reading >>

Im Not Worried About Bitcoin Scalability, But I Am Losing Sleep Overethereum

Im Not Worried About Bitcoin Scalability, But I Am Losing Sleep Overethereum

Economist & investor, Editor in Chief at Adamant Research Im not worried about Bitcoin scalability, but I am losing sleep overEthereum With the recent surge in the Ethereum price (ETH reaching 30% of Bitcoins market cap at nearly $5 billion), I find myself reassessing a number of my conclusions, to the point where Im wondering whether it could overtake Bitcoin as the dominant cryptocurrency at some point in the future. Because of various network effects, I hold a cryptocurrency maximalist position, believing that one protocol will eventually win +80% of the market. With that as a given, I currently have a binary view on the ecosystem: either Bitcoin will win, or Ethereum. Here are my assumptions about the Ethereum (ETH) blockchain, compared to Bitcoins: Turing vulnerable, i.e. has a much larger attack surface On track towards a more centralized future Its proposed proof-of-stake mining algorithm wont be more efficient than proof-of-work Will suffer more blockchain bloat than Bitcoin, leading to more risky design paths such as sharding. Based on these assumptions, I had until recently projected a path forward where Bitcoin continues to dominate the cryptocurrency market. However, the following observations give mepause: Ethereum Enterprise Alliance is making a good impression, lending the Ethereum project credibility in the highest levels of finance. Bitcoin faces a scaling bottleneck with no clear short term solution Ethereums current on-chain tx fees are much lower than Bitcoins Its great flexibility makes it attractive to developers Several projects are making the transition to the Ethereum platform, or are creating applications for it: Brave , Storj , Shapeshift . The NY Department of Financial Services (DFS) has given Coinbase official authorization to offer ETH to Continue reading >>

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