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Ethereum Plasma Date

This Is How Ethereum Will Scale

This Is How Ethereum Will Scale

When it comes to Ethereum, scaling is the most important issue to take into consideration. The blockchain technology has expanded rapidly over the last two months, as you can see in the transactions chart below . On November 11, there were less than 500,000 transactions per day. But today, the network is approaching almost 1500,000 daily transactions. With the number of transactions rapidly growingthe Ethereum networks scaling is now facing the true test of whether or not it can handle rapid user-growth. Since its development, the goal of Ethereum has always been to develop a cryptocurrency with the capacity to grow into a mainstream global currency. Unlike many other blockchain technologies, the founders of Ethereum primary intentions were to create a currency that would change the worldrather than focus on profits. Thats why I was really excited to hear Ethereum founder Vitalik Buterin say it will just take a couple of years for the Blockchain to replace Visa at TechCrunch Disrupt 2017. Setting a goal like Buterins is extremely ambitiousbut is it possible? How exactly can the Ethereum Foundation scale their digital currency platform onto a level that can provide millions of transactions per second? Contrary to popular belief of blockchain, Ethereum has the potential to scale on-chainrather than exclusively off-chain. In this article, I use on-chain scaling to refer to methods that can increase blockchain network capacity. This is one of the main ways that Ethereums focus diverts from other blockchain networks. The founder of Ethereum particularly emphasizes promise behind the on-chain scaling method known as sharding. According to Vitalik , sharding can be understood as a blockchain that has different universes and each of these universes is a different account space Continue reading >>

Ethereum Blockchain's Future With Casper And Constantinople

Ethereum Blockchain's Future With Casper And Constantinople

Ethereum Blockchain's Future With Casper And Constantinople From Casper to Constantinople and from staking to sharding, Ethereums next set of upgrades are poised to change the platform like never before. As blockchain and cryptocurrency finally make their foray into wider public awareness, core comprehension of those technologies will begin to spread faster and farther and the hype surrounding them will begin to crescendo. Decentralized systems are by nature dependent upon the network they are comprised of, so when you use the technology, you become part of growing and improving that infrastructure. As Cornell University's Emin Gn Sirer told ETHNews: "What matters, first and foremost, is a healthy community ready to evolve the underlying technology according to scientific findings, and Ethereum has that going for it in spades." So what should the Ethereum ecosystem expect moving forward into 2018 and beyond? Speaking from Taipei late last November, Vitalik Buterin outlined a new development roadmap for what he calls "Ethereum 2.0." "There isn't really a precise conception of what goes into Ethereum 2.0 and what doesn't," said the blockchain's co-founder. "Ethereum isn't a product that gets released by a company ... This is more like something that's going to end up slowly evolving over time. Even still, though, there are very major changes to Ethereum's architecture that we do expect will come over the next few years." Buterin went on to explain, "There's generally three major categories of problems that I just keep talking about every year and the reason why I keep talking about them every year is because they are big problems and they are very important problems." Although there is a significant amount of work to be done by the Ethereum Foundation and the ecosystem a Continue reading >>

Why Plasma Is Relevant For Ethereum

Why Plasma Is Relevant For Ethereum

Ethereum has some serious scaling issues. Since its launch in mid-2015, the blockchain 2.0-darling has struggled to chug along; gasping for transaction breathing room with every successful initial coin offering. Lets do some quick math by comparing Ethereums current capabilities to a flagship social utility app such as Facebook. Currently, the Ethereum network currently caps out at around 13 transactions per second; ETH-based tokens such as OMG, Golem, & Civic cap out at around half of that, 7 transactions per second. An app of Facebooks size makes around ~200K API requests per second. In Ethereum world, instead of API requests, users pay ether gas to run smart contracts. This means Ethereum transaction capability needs to grow by an astounding multiple of x25,000 to handle the network traffic of a decentralized app comparable to Facebook. Running these smart contracts counts as a transaction. This gas has a maximum limit set per block in the Ethereum protocol. Simply increasing the block size to allow for a higher amount of gas wont work because it sacrifices decentralization only industry-size miners could afford to participate. In addition, whatever scaling solution we introduce must also not sacrifice a reasonable amount of security. The challenge is what Vitalik calls the scalability trilemma: building a system that fulfills decentralization, scalability, and security. Enter Plasma, Vitaliks & the Lightning Networks Justin Poons scaling solution for Ethereum. Quietly released mid-August, the Plasma whitepaper ( ) details a collection of standard smart contracts used to create a tree of side-chains aptly called Plasma chains. These Plasma blockchain trees allow for off-chain transactions; transactions that only periodically commit hashed updated balances to its adu Continue reading >>

Ethereum's Raiden Network: An Off-chain Solution To Scalable Payments | Cryptoslate

Ethereum's Raiden Network: An Off-chain Solution To Scalable Payments | Cryptoslate

Share on Facebook Share on Twitter Share on Google+ Share on LinkedIn Vitalik Buterin predicted in September 2017 that it will take a couple of years for the Ethereum Network to reach Visa-like capacity. Raiden (RDN) is one of the more notable efforts making progress towards this goal, using off-chain technologies to increase network capacity. The Raiden Network is an off-chain scaling solution, enabling near-instant, low-fee and scalable payments. The second most valuabletoken on the market is quietly building all of the infrastructure needed act as a staple for the way blockchain is used. Ethereum , a BAAS (blockchain as a service) token, has hundreds of groups and projects building their foundation on the Ethereum Network using the ERC20 token standard. Some of the largest crypto companies, such as Consensys , are investing millions into the Ethereum framework. In a rather strategic and quiet manner, Raiden then released its first Micro Raiden Bug Bounty back on November 30th of this year. While Raiden sounds great on paper, the ICO was never supposed to happen and there was never supposed to be a token attached to it. Raiden promised a very quiet ICO and little marketing so that they can get the funds needed to make the project happen. This controversy seems to have contributed to a lack of demand for RDN, but investors are still betting that the off-chain tech will be a big win for Ethereum . Raiden is very similar to the Lightning Network . It is Ethereums off chain layer that will provide instant transactions for a fraction of the price. How does it work? Watch this short video (1:42): The goal of the off-chain solution is to alleviate stress from the main chain; to keep fees for Ethereum low and transactions running smoothly. Similarly to the Lightning Network Continue reading >>

Raiden Network - Fast, Cheap, Scalable Token Transfers For Ethereum

Raiden Network - Fast, Cheap, Scalable Token Transfers For Ethereum

Raiden is an open source project that aims to scale Ethereum by using state channel technology. The Raiden Network is an off-chain transfer network for Ethereum ERC20 tokens. It provides a fast, scalable, and cheap alternative to on-chain token transfers. At the same time, the Raiden Network transfers provide users with guarantees of finality, security, and decentralization similar to those known from blockchains. Which problems does the Raiden Network solve? The Raiden Network is a technology that leverages off-chain payment channel networks to address these substantial issues on the Ethereum blockchain: Blockchains do not scale well. Current public, permissionless blockchains are unable to achieve more than a low, fixed number of transactions per second. Ethereum has been shown to reach its cap at about 10 transactions per second. Short-term scaling solutions, like raising maximum computation performed per block by a constant factor, will not be able to support continued mainstream adoption. The Raiden Network will provide a payment system based on payment channel technology that scales with the number of its users. This means that the bigger the Raiden Network becomes, the higher its maximum throughput will be, with practically no upper limit in sight. Blockchains are slow. At the moment, Ethereum mines a new block approximately every 15 to 30 seconds. To reach practical finality of a transaction, confirmation times of several minutes have to be endured. This significantly degrades user experience and hinders mainstream adoption. Raiden Network transfers are as fast as text messages. The moment you receive a signed Raiden transfer, you can be certain that you now hold the amount included in the transfer. There is no need to wait for any confirmations. Using blockcha Continue reading >>

With Development And Price, Where Does Ethereum Go Long-term?

With Development And Price, Where Does Ethereum Go Long-term?

With Development and Price, Where Does Ethereum Go Long-Term? At a Blockchain conference hosted in Taipei, Ethereum Co-founder Vitalik Buterin outlined the long-term roadmap of Ethereum development. At a Blockchain conference hosted in Taipei, Ethereum Co-founder Vitalik Buterin outlined the long-term roadmap of Ethereum development. According to Buterin, most of the underlying issues of the Ethereum Blockchain network fall under the following categories: scalability, smart contract safety, consensus protocol and privacy. Several network updates including the most recent Byzantium hard fork provided solutions in the four major areas. But, as Buterin noted during an interview with South Korean mainstream media outlet Joong Ang, it may take at least two to five years to truly solve scalability within the Ethereum network. Buterin said : I would say two to five, with early prototypes in one year. The various scaling solutions, including sharding, plasma and various state channel systems such as Raiden and Perun, are already quite well thought out, and development has already started. Raiden is the earliest, and its developer preview release is out already. In regards to scalability, the Ethereum Foundation and the open-source development community of Ethereum made significant progress with the upcoming launch of the Casper testnet and the introduction of Plasma, a second-layer scaling solution developed by Buterin and Bitcoins Lightning Co-author Joseph Poon. Casper is a long-term scaling solution that employs a hybrid proof-of-work (PoW) and proof-of-stake (PoS) consensus protocol onto the Ethereum network. Currently, similar to Bitcoin, the Ethereum network solely relies on the PoW consensus protocol to maintain the network and to verify transactions. As Christian Reitw Continue reading >>

Plasma Can Save Ethereum From Cryptokitty Level Congestion

Plasma Can Save Ethereum From Cryptokitty Level Congestion

Plasma Can Save Ethereum From CryptoKitty Level Congestion Earlier this year, Ethereum co-founder Vitalik Buterin and Lightning co-author Joseph Poon announced Plasma, a second-layer scaling infrastructure for the Ethereum protocol. In a recent blog post, the development team behind Bankex, an Ethereum-based open-source digital asset exchange, noted that the implementation of Plasma could reduce the congestion of the Ethereum blockchain network which continues to increase the fees of Ether transactions. Currently, as the most popular and widely utilized decentralized application, CryptoKitties accounts for approximately 20 percent of the Ethereum networks daily transaction volume. An application like CryptoKitties which relies on digital asset trading and the seamless exchange of tokens can stress any public blockchain network because its operations lead to a myriad of transactions which are broadcast to the main blockchain. Recently, the Bankex development team revealed that it had tested the Plasma protocol on the Rinkeby test network, to evaluate its effect on expanding the networks bandwidth and transaction capacity. The test results demonstrated that Plasma is capable of increasing the transaction capacity of the Ethereum network by a massive margin. While the implementation of Plasma on the main Ethereum protocol could take months to years of development, Bankex researchers noted that the Plasma protocol could one day allow Ethereum to process 100,000 transactions per second. During the first test of the Plasma protocol, conducted December 14th on the Rinkeby test network, the transaction per second ratio is estimated to be around 5 thousand per second. This is 250 times faster than Ethereums current bandwidth. The working version of Plasma is expected to boost t Continue reading >>

Vitalik Buterin Lays Roadmap For Ethereum Visa Levels Quadratic Sharding

Vitalik Buterin Lays Roadmap For Ethereum Visa Levels Quadratic Sharding

Vitalik Buterin Lays Roadmap for Ethereum Visa Levels Quadratic Sharding The ethereum killer is ethereum, the ethereum of China is ethereum, the ethereum of Taiwan is ethereum 2.0. That was the opening statement of Vitalik Buterin, Ethereums inventor, at BeyondBlock in Taipei where he laid out a plan to reach Visa levels scalability within the next 3-5 years. The main problems facing ethereum are privacy, safety and scalability, he said. With privacy being 3/4th solved, according to Buterin who was wearing a Byzantium t-shirt, referring to the latest ethereum hardfork. That upgrade introduced some fairly fancy new cryptographic algorithms, Buterin says, including zero-knowledge proofs and ring signatures which dont solve the privacy problem on their own but can give coders tools to build solutions. From a base layer perspective, the privacy problem is three quarters of the way to being solved, he said. The one quarter that isnt solved theres still leaks at the protocol level. If you use a mixer and pay for gas there may be privacy leaks, but most of the work from here is at layer 2 he says. Suggesting base layer privacy has been solved, at least conceptually, by zk-Snarks which give you the ability to hide a transaction from all at the same time as allowing you to choose who you wish to show that transaction. Safety, of course, isnt a problem you solve, only minimize or maximize as may be the case. But one problem that could be solved is scalability. However its a hard problem due to the trilema of decentralization, security, and scalability. Having two out of three is easy he says, providing examples of current solutions that have made that two out of three trade-off: Existing blockchains, like Ethereum and Bitcoin in their current state, sacrifice scalability, he say Continue reading >>

How Will A $100 Mln Grant Help Ethereum Scale?

How Will A $100 Mln Grant Help Ethereum Scale?

How Will a $100 Mln Grant Help Ethereum Scale? A $100 mln grant created by six large-scale Blockchain projects is expected to speed up the development of scaling solutions for the Ethereum Blockchain network. On Feb. 16, six large-scale Blockchain projects OmiseGo, Cosmos, Golem, Maker and Raiden, that have completed successful multi-million dollar initial coin offerings (ICOs) last year, along with Japanese venture capital firm Global Brain have created the Ethereum Community Fund (ECF), to fund projects and businesses within the Ethereum ecosystem. The ECF will begin with $100 mln, likely raised by the six Blockchain projects. Some members of the Ethereum Foundation including Ethereum creator Vitalik Buterin plan to advise the fund. Buterin told TechCrunch : Ethereum has grown beyond my expectations over the last few years, but the work is clearly not finished. Delivering value that matches the hype should be the mantra of 2018; efforts such as the ECF which help organize the development of the ecosystem are going to help to make that possible. Buterins personal goal of funding open-source projects In September 2017, Buterin revealed that his advisor shares from $1.8 bln project OmiseGo and $370 mln decentralized cryptocurrency exchange Kyber Network will be allocated in a private fund to finance open-source projects building innovative technologies such as scaling solutions for the Ethereum Blockchain network. Buterin emphasized that he will no longer advise any other Blockchain project apart from OmiseGo and Kyber Network and that all of the incentives he received from the two Blockchain projects will be used to improve the Ethereum protocol. At the time, Buterin said : I'm announcing that 100% of my OmiseGo + Kyber Network advisor shares will be either donated to Continue reading >>

Plasma: Scalable Autonomous Smart Contracts

Plasma: Scalable Autonomous Smart Contracts

Plasma: Scalable Autonomous Smart Contracts Abstract: Plasma is a proposed framework for incentivized and enforced execution of smart contracts which is scalable to a significant amount of state updates per second (potentially billions) enabling the blockchain to be able to represent a significant amount of decentralized financial applications worldwide. These smart contracts are incentivized to continue operation autonomously via network transaction fees, which is ultimately reliant upon the underlying blockchain (e.g. Ethereum) to enforce transactional state transitions. We propose a method for decentralized autonomous applications to scale to process not only financial activity, but also construct economic incentives for globally persistent data services, which may produce an alternative to centralized server farms. Plasma is composed of two key parts of the design: Reframing all blockchain computation into a set of MapReduce functions, and an optional method to do Proof-of-Stake token bonding on top of existing blockchains with the understanding that the Nakamoto Consensus incentives discourage block withholding. This construction is achieved by composing smart contracts on the main blockchain using fraud proofs whereby state transitions can be enforced on a parent blockchain. We compose blockchains into a tree hierarchy, and treat each as an individual branch blockchain with enforced blockchain history and MapReducable computation committed into merkle proofs. By framing one's ledger entry into a child blockchain which is enforced by the parent chain, one can enable incredible scale with minimized trust (presuming root blockchain availability and correctness). The greatest complexity around global enforcement of non-global data revolves around data availability an Continue reading >>

Vitalik Reveals New Idea For Plasma Scaling On Ethereum

Vitalik Reveals New Idea For Plasma Scaling On Ethereum

Vitalik Reveals New Idea for Plasma Scaling On Ethereum Mar 9, 2018 at 21:02 UTC|UpdatedMar 10, 2018 at 12:32 UTC In a surprise appearance at the ethereum community conference EthCC in Paris on Friday, ethereum founder Vitalik Buterin presented a scaling solution for Plasma, a system of smart contracts that seeks to increase the computational potential of the world's second-largest blockchain. Created by Buterin and Bitcoin Lightning Network co-creator Joseph Poon last year, the scaling solution is one of many under development that aims to boost the capacity of ethereum, specifically working by creating a layer of smart contracts that can interact with the main blockchain. But while the current iteration of the prototype requires all users to download and validate each smart contract in the Plasma system, in his new talk, Buterin described a way to limit this to a handful of data points. "The main benefit here is that basically the amount of data that clients need to process goes down by a lot," Buterin explained. Rather than having to download the entire Plasma history, users would be able to instead generate "Plasma coins" by sending a deposit to the contract. As such, instead of downloading and verifying everything, users could simply track the tokens they have created within that system. "Now users only have to verify the availability and correctness of the Plasma chain only at the specific index that they want to spend, or the specific index of any coins that they own and coins that they care about," Buterin said. Created by Buterin and developers Dan Robinson and Karl Floersch, the idea has yet to undergo testing. However, according to Buterin, this minimized system could have a number of important use cases, such as protecting cryptocurrency exchanges from larg Continue reading >>

Construction Of A Plasma Chain0x1

Construction Of A Plasma Chain0x1

Plasma is a blockchain scaling solution designed by Joseph Poon and Vitalik Buterin that uses child chains reporting to root chains (i.e. Ethereum) to increase transaction throughput without any of the safety concerns that usually come with using smaller chains. The OMG (OmiseGO) decentralized exchange was designed in anticipation of Plasma. Well utilize Plasma to support a scalable, fully on-chain exchange without sacrificing security. In this piece Im going to describe how were building Plasma. Goal: To create a blockchain that doesnt rely on itself forsafety. Weve achieved this by requiring users to exit the child chain theyre using if anything goes wrong. Heres how itll work: If an invalid transaction is included in a child chain, all users must exit the child chain within 7 days. If a user cant access a child chain, but a child chain block is submitted to its parent chain, the user must regain access to the child chain and check its validity or exit within 7 days. Withdrawals (aka exits) are processed in the order of the creation of the transaction theyre referring to. Unspent transaction output (UTXO) withdrawals referencing a transaction that was included in a parent chain at a lower block height (i.e. older transactions) have priority over transactions included in a later block. This causes exits referencing recently included invalid transactions to have a lower priority than exits referencing older valid transactions. Transactions are only valid if the owners of the inputs sign confirmations verifying that their transaction has been included in the appropriate parent chain. Client Watches Ethereum and runs the child chain, detecting fraudulent behavior as soon as possible and exiting. Child chain Watches Ethereum for deposits and performs all computations rega Continue reading >>

Sharding, Raiden, Plasma: The Scaling Solutions That Will Unchainethereum

Sharding, Raiden, Plasma: The Scaling Solutions That Will Unchainethereum

Sharding, Raiden, Plasma: The Scaling Solutions that Will UnchainEthereum And how REX is positioned to grow with the blockchain of tomorrow Cryptocurrency heavyweights such as Bitcoin and Ethereum are beginning to garner the attention of mainstream media in thanks largely to their monstrous rise in value over the past year. This coverage has piqued the interest of people all over the world who are eager learn more about the underlying technology and how to get involved. However, it also raises concerns of scalability growing the capacity of blockchain networks to handle the massive influx of traffic that comes alongside mainstream adoption one of the biggest challenges facing blockchain technology today. In our previous blog post , we discussed how the current throughputs of Bitcoin and Ethereum are limited, which results in a backlog of unconfirmed transactions when their networks are at full capacity. This issue was laid front and center just this week, and provides a perfect example of the challenges facing the extreme growth of blockchain technology CryptoKitties, a recently launched dApp upon which users trade virtual kittens, went viral and tested the networks capacity, providing essential scaling data and a valuable case study for Ethereums viability in asset management, and for the Ethereum blockchains current transactional capabilities. In the span of four days,CryptoKitties went from accounting for 3% of all Ethereum transactions to 11.77%. This resulted in transaction backlogs, network delays and higher gas fees. Real estate, a 217 trillion dollar global asset class, will be among the largest industries to benefit from the blockchain. However, blockchain technology will struggle to reach its full potential if it fails to overcome this obstacle and facilitate Continue reading >>

Vitalik Buterin And Omisego

Vitalik Buterin And Omisego

OmiseGo is Vitalik Buterins favourite token model Vitalik recently posted on his twitter account three main reasons why OmiseGo , right now, is his favourite token model. OmiseGo is not a medium-of-exchange token; it has a clear valuation model (expected discounted future transaction fees minus node operation cost); and it requires running node to get returns, not passive income (so more legally defensible). After this twitter post the prices went up by almost 100%. Latest news from the OmiseGo team speaks about development progress on one of the basic OmiseGo tools. OmiseGo SDK, a code framework on which developers can build their own wallet applications that will interact with the OmiseGo Blockchain. OmiseGo SDK has officially moved from alfa into closed beta and is now in the hands of one of the strategic partners, a huge multinational company that will help develop one of the first live use cases. It is not a secret that OmiseGo cooperates with the Ethereum team. What does this cooperation bring to Ethereum? OmiseGo is Ethereum-based financial technology OmiseGO is building its own blockchain, but not every operation will happen on it. Though basic decisional operations happen on the OmiseGo blockchain, the final delivery happens on the Ethereum blockchain. OMG is an ERC20 token. The main advisors for OmiseGo are Vitalik Buterin, founder of Ethereum, and Joseph Poon, Lightning Network co-author. This partnership promises the newest technical solutions implemented in OmiseGo systems. One of the biggest announcements, which is impatiently expected, is the implementation of plasma technology. Blockchain technology has many positive aspects compared to the traditional centralized database model, but the problem that needs to be solved is scalability. It means not too m Continue reading >>

Omisego Is The First Plasma.io Project!

Omisego Is The First Plasma.io Project!

More great news for OMG it was only 3 days ago I wrote about why I invested in them. The significance of this news is that plasma quoted from there site "Plasma is a proposed framework for incentivized and enforced execution of smart contracts which is scalable to a significant amount of state updates per second (potentially billions) enabling the blockchain to be able to represent a significant amount of decentralized financial applications worldwide. These smart contracts are incentivized to continue operation autonomously via network transaction fees, which is ultimately reliant upon the underlying blockchain (e.g. Ethereum) to enforce transactional state transitions." When OMG gets its own separate blockchain that runs Proof-of-Stake, you will be able to stake your coins to help secure the blockchain and this will earn you some % of your tokens over a period of time. Since the OmiseGo blockchain will be closely integrated into Ethereum mainnet, this will greatly benefit there project. Continue reading >>

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