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Ethereum Plasma Vs Raiden

Ethereum Will Introduce Plasma, A New Architecture To Ethereum Blockchain.

Ethereum Will Introduce Plasma, A New Architecture To Ethereum Blockchain.

in cryptocurrency 2 years ago (edited) Vitalik Buterin and Joseph Poon are going to Launched Plasma Project. There is a model called Raiden which is a lightening Network for Ethereum. The Idea behind this is to Switch from a model where all Transactions hit the shared ledgers on the Blockchain to a model where users can privately exchanges message which sign the transfer of value. Raiden is implemented as an extension to Ethereum. A Raiiden node runs alongside an Ethereum node and communicates with other Raiden nodes to facilitate transfers and with the Ethereum Blockchain to manage deposit. Raiden uses a network of p2p payment channels and deposit in Ethereum to preserve the guarantees expected from a Blockchain system. In this way you can send Million of transaction off-chain, and you need only small number of on-chain transaction to secure the settlement. So you fees are very low. Now Plasma is a series of contracts which runs on Top of a root Blockchain that is Main net Ethereum Blockchain and similar to Lightening Network, that is Blockchain under Blockchain. The root network contract process only very small amount of commitment from child Blockchain which can do a huge number of computation. The special things is that all commitment are broadcasted periodically on the root Blockchain time to time from the child. The Blockchain are hierarchically arrange in a trees. This will create a well balanced system to maximize data security and data availability and minimise cost. The mining is done only on root network and proofs flowing from the roots. Scaling is eliminated by this as everytime no need to watch the all chains, when there is a need then check the all chains and correct the system. Transactions capacity increased in huge amount with this, as channels are ne Continue reading >>

The Scalability Race Heats Up As Ethereums Raiden Enters Testing Stage

The Scalability Race Heats Up As Ethereums Raiden Enters Testing Stage

The scalability debate is all but over for most people following bitcoins August 1st chain-split hardfork, allowing the currency to follow both paths at the same time, but in different coins. The main currency, bitcoin, will follow Bitcoin Cores approach of scaling by forming a settlement system through second layer protocols, like the Lightning Network (LN). Bitcoin Cash, on other hand, is prioritizing on-chain scaling first. That has already given them plenty of capacity, some 8x more than btc, with their problem now being adoption rather than scalability. Ethereum is to follow both approaches, with equal priority, on the same chain and currency. They plan to scale on-chain to as good as unlimited capacity, something that would be the biggest breakthrough in this space. They are to also scale by utilizing LN like second layer protocols, such as Raiden or Plasma . Raiden has been in development for quite some time and was showcased at Devcon2 when Heiko Hees, its main developer, showed how it can be utilized in an internet of things context whereby through a Raiden connected smart contract electricity is charged dependent on use. That protocol has now entered live testing , the final stage before its deployed in production. Main-net release might now be as soon as next month, although it is probable theyd hold off until Devcon3 if its ready, otherwise it could be as late as January. Once the protocol is good to use, it may considerably reduce fees and transaction speeds, especially for smart contracts. Requiring no changes from the ethereum protocol itself, it will work as an extension of sorts, with smart contracts or individuals able to tap into the network if they please. The protocol is intended to complement on-chain scaling through Proof of Stake or Sharding. Bu 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 >>

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 Foundation To Promote Scalability Fixes With Financial Incentives

Ethereum Foundation To Promote Scalability Fixes With Financial Incentives

In a potential platform changing announcement, Ethereum foundation leader Vitalik Buterin released the details of a new subsidy program that is meant to help fund researchers and developers to produce innovative and effective solutions to the Ethereum scaling problem . This program could lead to exciting new developments that could help defeat scaling problems before they become crippling issues. Lets take a moment to go over what scaling is, and what sort of challenge it presents to popular and active blockchain tech . Scaling refers to a blockchains ability to adapt to increasing demand for transactions and processing power. Simply put, if you think of a blockchain as a highway, scaling refers to methods that would allow for more cars to pass through and have fewer traffic jams. Bitcoin and Ethereum have both been suffering recently from problems related to traffic. Bitcoin has seen transaction fees and confirmation times get worse, and seemingly always reaching new all-time highs for fees or confirmation times . While Ethereum has not faced quite as much of a burden as bitcoin, its growing popularity and the number of platforms that operate on top of it have a lead to issues. Instead of waiting for $50 fees to appear, the Ethereum foundation wants to have solutions in place before that would happen. As explained in the announcement by Buterin, the subsidy platform will give out amounts of funding between $50,000 and $1 million to qualified organizations that will engage in the research and development of scaling solutions. Those solutions include both blockchain sharding and layer two concepts. While those amounts may seem large, Buterin noted that the goal of the subsidy program is not to dole out massive profits for participating organizations. But instead, to sim 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 >>

Ethereum + Lightning? Buterin And Poon Unveil 'plasma' Scaling Plan - Coindesk

Ethereum + Lightning? Buterin And Poon Unveil 'plasma' Scaling Plan - Coindesk

Ethereum + Lightning? Buterin and Poon Unveil 'Plasma' Scaling Plan Ethereum has a problem that's hard to ignore: it can't support many users right now. But while these limits were once a potential problem discussedbyresearchers, they're now affecting real users. The world's second-largest blockchain platform has recentlyseen a slew of capacity issues, including rising smart contract fees that occasionally bog down transaction times and interrupt newICO launches. That's not to say there haven't been high-profile projects to attempt solutions sharding, Raiden Network and Truebit have all emerged as innovative ways to ensure future decentralized applications run as easilyas the centralized ones we use today. But a new solution called Plasma , unveiled Wednesday, is quickly emerging as perhaps the project to watch. That's because its authors Vitalik Buterin and Joseph Poon have blockchain resumesthat are hard to beat. Not only is Buterin the creator of ethereum , but Poon co-authored the Lightning Network white paper, which set the roadmap for the technology widely touted asbitcoin's best shot for increasing its number of users. Together, the two are a powerhouse pair to haveworking on a scalability project. "People say you can't run everything in the world on the blockchain, but I really, really think it's possible." He believes wholeheartedly in ethereum's mission of becominga world computer that "replaces server farms," and has no doubt that its scaling hurdles will be overcome. "This decentralized application stuff has looked like hype to really technical people, because there wasn't a clear trajectory and a path showing how it's achievable," Poon said. But now, with Plasma, he believes there is. The short version of the scalability problem is this: To check ethereum' Continue reading >>

Blockchain Scaling Solutions Explained: The Lightning Network, Raiden Network, Andplasma

Blockchain Scaling Solutions Explained: The Lightning Network, Raiden Network, Andplasma

Blockchain Scaling Solutions Explained: The Lightning Network, Raiden Network, andPlasma The problem is, the current mechanism is not sufficient to maintain these levels of growth. Right now, the state of all blockchain protocols involves every node storing all states and processing all transactions. While this provides a high level of security, it also severely limits scalability. Over the years, there have been many repeated attempts to scale this mechanism so that only a small subset of nodes would be required to verify each transaction. To be a success, there must be enough nodes to verify each transaction so that security is not compromised, but few enough so that the system can process many transactions in parallel. But so far, every attempt to implement this has been unsuccessful. Despite the appeals from developers since 2011, Bitcoins block size of 1MB has never increased. This limit has created a bottleneck in Bitcoin, which has led to increased transaction fees and delayed the processing of transactions. As a result, the Bitcoin blockchain currently only supports approximately 37 transactions per second. To put this number into perspective, Visas peak is approximately 24,000 transactions per second. Developers working on Bitcoins main GitHub repository are in agreement that a block size increase is necessary in order for us to use the blockchain to its full potential. However, they have not agreed on how it should be implemented. The Lightning Network: A Solution to Bitcoins Scalability Problem? The Lightning Network is one proposed of the solutions to Bitcoins scalability problem and is currently under development. It uses an off-chain protocol and relies on SegWit. Lightning wouldnt require making updates to Bitcoins underlying software. Instead, it would Continue reading >>

Ethereum Price Analysis - Consolidation Likely In The Near Future

Ethereum Price Analysis - Consolidation Likely In The Near Future

Ethereum Price Analysis - Consolidation likely in the near future Josh Olszewicz , 20 Dec 2017 - Ethereum , Opinion , Price Analysis Ethereum (ETH) has continued to push North, having gained 77% this month alone. The market cap now stands at US$73.2 billion with US$3.4 billion in trading volume over the past 24 hours. Recent talking points include a blog post by Preethi Kasireddy, fundamental challenges with public blockchains .The post outlines several problems faced by blockchain platforms at the moment; limited scalability, limited privacy, lack of formal contract verification, storage constraints, and unsustainable consensus mechanisms- to name a few. Scaling issues on Ethereum became apparent in a post-CryptoKitties world. The Decentralized Application (Dapp) helped pushed an already busy network to its limits upon release. In the span of four days, CryptoKitty transactions went from 3% of all Ethereum transactions to 11.77%. This resulted in transaction backlogs, network delays, and higher gas fees. The backlog of transactions currently stands at over 14,000 transactions. Ethereum is capable of running 10-30 transactions per second. Vitalik Buterin, Vlad Zamfir, and other Ethereum developers are currently working on a variety of scaling solutions, the most drastic being a switch from Proof of Work (PoW), or mining, to Proof of Stake (PoS). The decision between PoW and PoS circles back to the issue with consensus mechanisms. PoW favors those who can amass the most mining technology with the cheapest electricity whereas PoS favors those who accumulated assets early in the coins life cycle.PoS coins are currently underutilized compared to PoW coins in terms of transactions per day. There has been increasing concern lately over the amount of electricity being soaked Continue reading >>

How Do Casper, Plasma And Other Ethereum Upgrades Works?

How Do Casper, Plasma And Other Ethereum Upgrades Works?

How Do Casper, Plasma and Other Ethereum Upgrades Works? Tags: Casper , Plasma , Raiden , Sharding We are living in the dial up era of Cryptocurrency. Future versions of ourselves will look back at the congested Ethereum blockchain and slow transaction times like we remember listening to a dial tone before connecting to the internet. Make no mistake, there is incredible progress being made, but Ethereum is too slow. Its estimated Visa can process 50,000 transactions a second, which dwarfs PayPals 193 TPS and SWIFTs 174. Ethereum needs to scale to compete. It currently manages about 7 15 tps. Ethereum wasnt intended to act only as a decentralized currency. The Ethereum network was designed to host daps, ICOs and ERC20 tokens. This is going to require a network that is orders of magnitude faster than it is now. Congested blockchains and slow transaction times are common across the board for POW cryptocurrencies. Litecoin and Bitcoin Cash has increased their transactions times by increasing the block sizes and Litecoin was first to market with SegWit, but all of these cryptocurrencies are being held back by an inability to scale. At Devcon 3 (an Ethereum conference) Vitalik Buterin talks about a trilemma affecting blockchains. The trilemma claims that blockchain systems can only at most have two of the following three properties: This is true for all proof of work blockchains, but what about other cryptocurrencies that have proof of stake blockchains, Directed acyclic graphs and Proof of Importance consensus algorithms. From an investors point of view, scalability isnt essential for speculative price increases and mad hyped up moon runs #lambo. At the floor of the largest dip in the market cap, so far, there are still over $80 billion dollars tied up in Ethereum and aroun Continue reading >>

Vitalik Buterin Is Against Many Open-source Ethereum Scaling Projects Conducting Icos

Vitalik Buterin Is Against Many Open-source Ethereum Scaling Projects Conducting Icos

Vitalik Buterin is Against Many Open-Source Ethereum Scaling Projects Conducting ICOs Vitalik Buterin, the co-founder of Ethereum, recently announced that he will not be conducting an initial coin offering (ICO) for Plasma, an open-source scaling solution he has developed in collaboration with Bitcoins Lightning Network co-author Joseph Poon. Incentivization Issues for Open-Source Projects and Scaling Solutions As experts including Coinbase co-founder and former Goldman Sachs trader Fred Ehrsam have noted in the past, Ethereum still has many challenges to address and solve in regards to scalability. Ehrsam emphasized that the Ethereum network will have to improve by factor of 100 to serve decentralized applications (dapps) with millions of users. Large apps cant run solely on chain and likely never will. They need off-chain scaling solutions. While its tricky to make accurate estimates when combining scaling improvements, its conceivable we could see a 100x improvement by the end of 2018, which would allow a 110m user app. Scaling is multidimensional. Different methods address different things, wrote Ehrsam. Currently, as Ehrsam explained, many Ethereum scaling solutions and projects are addressing different issues and challenges. Plasma is one of the highly anticipated projects that is expected to scale the Ethereum network in the mid-term and improve privacy measures by using ZK-SNARKs, a cryptographic system employed by the anonymous cryptocurrency Zcash. In open-source projects, core developers tend to take pay cuts and salaries that are below industry standards for the benefit of the network, community, and industry. Ethereum and Bitcoin developers in particular are allocating the majority of their resources, intellectual capacity, and creative energy in improving Continue reading >>

Plasma In 10 Minutes Chain.cloud Company Blog Medium

Plasma In 10 Minutes Chain.cloud Company Blog Medium

Today Vitalik Buterin and Joseph Poon released a working draft of Plasma project . Let me explain how it should work. I hope it will save you a little time. There is a Lightning Network implementation (still not production ready) for Ethereum that is called Raiden . The basic idea is to switch from a model where all transactions hit the shared ledger on the blockchain (which is the bottleneck) to a model where users can privately exchange messages which sign the transfer of value. Raiden uses a network of p2p payment channels and deposits in Ethereum to preserve the guarantees expected from a blockchain system. Raiden is implemented as an extension to Ethereum. A Raiden node runs alongside an Ethereum node and communicates with other Raiden nodes to facilitate transfers and with the Ethereum blockchain to manage deposits. Even if you send millions of transactions off-chain, your gas fees are still very low, because only a small number of on-chain transactions is needed to secure the settlement (say, you send tx to the chain once in 24h). Transactional capacity is increased dramatically as channels are net-settled on the blockchain. Payments can be routed across a network of these channels. But Lightning Network approach is not limited to payments only. It can be used to scale smart contracts state changes too. So this is what Plasma is all about Welcome the new layer to the Ethereum architecture: Similar to the Lightning Network, Plasma is a series of contracts which runs on top of a root blockchain (i.e. the Mainnet Ethereum blockchain). The root network contract processes only tiny amount of commitments from child blockchains that are able to do an incredibly large amount of computations in most cases. Commitments are broadcasted periodically to the root blockchain f Continue reading >>

Vitalik Buterin And Joseph Poon On Ethereum Scalability Issues, Plasma And Cosmos

Vitalik Buterin And Joseph Poon On Ethereum Scalability Issues, Plasma And Cosmos

Vitalik Buterin and Joseph Poon on Ethereum Scalability Issues, Plasma and Cosmos Scalability is preventing the commercialization of blockchain Decentralized blockchain networks are significantly harder to scale than centralized platforms or follow us on Facebook , LinkedIn , Twitter and Telegram At the 3rd Annual Global Blockchain Summit hosted by Wanxiang Group, Ethereum co-founder Vitalik Buterin, Bitcoins Lightning co-author Joseph Poon, and Cosmos blockchain project founder Jae Kwon took part in a panel discussion. They discussed the scalability issues of Ethereum, solutions that could scale the Ethereum network in the upcoming years, and the creation of enterprise-grade blockchain networks with flexibility. The Ethereum Foundation and its development communities, alongside independent organizations, are actively developing scalability solutions that could improve the flexibility of the Ethereum network. Experts, including Buterin, agree that scalability issues are preventing the commercialization of blockchain . They contend that the implementation of unique on-chain and off-chan scaling solutions, could afford Ethereum the scalability to support millions of active users while maintaining decentralization. I do think that scalability is one of the key problems that is standing between the blockchain technology hype, which we already have, and the blockchain technology mass production. Buterin emphasized that leading public blockchain networks like bitcoin and Ethereum can settle about six transactions per second at maximum capacity. However, as he explained, Ethereum needs to be able to settle thousands of transactions per second to support real mainstream applications. I do think that scalability is one of the key problems that is standing between the blockchain Continue reading >>

Ethereum's Highly Anticipated Scaling Solution Raiden Network Is Active On Testnet Coinspeaker

Ethereum's Highly Anticipated Scaling Solution Raiden Network Is Active On Testnet Coinspeaker

A testnet for the Raiden Network , a proposed solution to the Ethereum scalability issues, was launched on Wednesday, September 6th, 2017. Scalability is one of the main issues faced by the blockchain networks. The current blockchain model makes it unable to use the system as a global network for instant payments. As the number of ethereum users continues to grow, the network needs more capacity to handle and validate all transactions. With the rising amount of users, the volume of transactions is surging at a very high rate. This, in turn, slows down the networks performance. Furthermore, the rise in the number of token sales launched on Ethereum brings huge amount of traffic to the network. The Raiden Network, which is similar to the bitcoin lightning network, is set to improve the Ethereum blockchain by addressing the exisitng issues. The main idea behind the project is that there is no need for global consensus to confirm transaction between participants. To increase ethereum scalability, the Raiden Network leverages off-chain state networks. Instead of sending all transactions to the blockchain, the technology allows users to privately exchange messages via peer-to-peer network. This means that only the final transactions are processed by the blockchain. Vitalik Buterin, the founder of Ethereum, commented: State channels are an important technology that has the potential to greatly improve the scalability and privacy of many categories of blockchain applications; in conjunction with sharding and other privacy-preserving cryptographic technologies, they are an important ingredient in helping decentralized systems to achieve the properties that mainstream individual and institutional users expect and deserve. In addition to higher speed of transactions, the new tech Continue reading >>

Plasma Vs Raiden Vs Sharding : Raidennetwork

Plasma Vs Raiden Vs Sharding : Raidennetwork

Hi guys, i am new to crypto (6/7 months now) and try to find the best crypto by DMOR. English isn't my main language so sometimes even reading whitepapers and some updates are though. still i like investing my time into reading and learning and will continue to do so. But a little help would be appreciated =D Plasma = Child chains on the Ethereum blockchain (main chain), with there own validators. For example a company could create a plasma child chain on top of the main chain with the agreements (or rules) through a smart contract on the main chain. These child chain help scale Ethereum since there are more chains witch can handle 15 tx/s (eth tx/s). The problem is that the tx in the child chain aren't validated by a miner, which means no one will validate the transaction because there is no reward (like on the main chain). to solve this problem there are penalties for breaking consensus written in the smart contract. anyone who participates could verify the tx with the main chain to control if there is proper consensus or fraud. If there is a form a fraud, this could lead to baby chain to collapse . If the chain collapses the smart contracts won't get executed (probably not that of a big deal). But if the payments also find place in the plasma child chains the funds will be lost ( in crypto thats forever, right ?). -So Plasma is a scaling solution for data and many to one contracts. like paying the electricity bills (same price for a lot of people so a plasma child chain for all the people who agreed to the same terms. But has the risk of collapsing and possible lost in funds.- Raiden network = A off-chain scaling solution by opening payment channels. These payment channels are linked to smart contracts between one vs one or many vs one. for example : if a electricit Continue reading >>

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