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Ethereum Scaling Solutions

Omisego: Innovative Scaling Solutions For Finance On Ethereum

Omisego: Innovative Scaling Solutions For Finance On Ethereum

OmiseGO: Innovative Scaling Solutions for Finance on Ethereum "OmiseGO enables financial inclusion and interoperability through the public, decentralized OMG network." The current financial system forces merchants and businesses to rely on antiquated banking systems thatwaste valuable time processing and tack on cumbersome transaction fees. This is largely due to the nature of thesecentralized systems that require compatibility across payment networks and financial institutions. While there have been reasonable steps in the right direction via payment processors like Apple Pay and Venmo , these still leave the end customer at the mercy of a network run by a centralized entity with complete control. Through the implementation of blockchain applications, sellers are opened up to a world of near zero-fee transactions, and innovative incentive systems that further drive brand loyalty and growth. While this sounds like a no-brainer for businesses in theory, integrating a blockchain payment system is a daunting task that currently has a high barrier to adoption. Whats more, most blockchain innovations currently rely on the Ethereum blockchain, which has scaling limitations. Thats why any project that is able to create, and sell, a unique blockchain payment platform that offers ease of use and extra incentive systems at scale will be a massive creator of value. One such project is OmiseGO , which aims to solve thecoordination problem among payment processors, gateways and financial institutions. By enabling decentralized monetary exchange at high volume and low cost, OmiseGO is hoping to build a value transfer service operating across currencies and asset types, national borders and corporate ledgers. Through their white-label wallet software development kit (SDK) that will m 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 >>

Ethereum Scaling Solutions And Tradeoffs

Ethereum Scaling Solutions And Tradeoffs

Ill cover/summarize them here as well, but you should be generally aware of Transactional Sharding, State Sharding, State Channels (of which Payment Channels are a subset version of), Plasma, and Truebit. Are you a Busy Person with Many Things to Do? TL;DR: layer-2 isnt here yet, and it wont be for another 612 months. The best thing we can do right now to fix the user-experience of blockchain networks is to trust but verify optimistic state transitions. At XLNT were working on this problem with gnarly . Come contribute to the discussion in the #gnarly channel at XLNT.chat . We have the concepts of layer-1, layer-2, and layer-n scaling solutions. Layer-1 solutions are anything that is core-protocol-level scaling, like the various sharding approachesthey must be part of the consensus protocol to function correctly. Layer-2 protocols are one degree awaythey operate by leveraging a layer-1 protocol (like Ethereum) and allow users to transact in an objectively less secure environment but one that is backed by the security of the layer-1 solution. For example, if theres fraud in a state channel, a user can submit a fraud proof thats validated by the layer-1 network. Likewise in Truebit, if theres a disagreement over the off-chain-computed solution proposed by a solver, the challengers can bring the solver to court by playing a verification game on Ethereum. In the optimistic case, weve computed information using a subset of the network that can be trusted by the whole, and in the pessimistic case, weve reverted back to the security of the main layer-1 consensus and still end up with a correct answer. Layer-n solutions are an extension of those ideasas we create, for example, a Plasma chain that branches off of Ethereum, we can create more Plasma chains that treat the first P 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 Price Rises Amid Anticipation Of Major Scaling Solutions

Ethereum Price Rises Amid Anticipation Of Major Scaling Solutions

A bright future looms ahead for all cryptocurrencies in the coming years. Especially Ethereum seems to be having a pretty good day today. With the price up by over 14%, it is evident the community anticipates some big changes. With sharding and Casper on the horizon, this sentiment is more than warranted. It is still up to the developers to deliver on their initial promises. That may prove to be rather difficult, although things are progressing nicely on the testnet. The year 2017 has been pretty solid for Ethereum . More specifically the price surpassed $1,000 for the first time last year. Ensuring this momentum carries over into the future will be rather challenging. Like any other cryptocurrency in the world, Ethereum needs to keep evolving over time. New features will be introduced in the near future. Two of the biggest developments are known as sharding and Casper. More specifically, the deployment of sharding seems to be near. Splitting the Ethereum blockchain data into smaller parts will introduce some interesting changes. This new feature will roll out across four different stages. The first of these stages is almost complete, with stage two scheduled to finalize in early March 2018. Once that is completed, the team will effectively perform real-life tests of this technology. The community will keep a very close eye on these proceedings moving forward, for obvious reasons. Additionally, Ethereum developers make some good progress on Casper , To most people, this concept is known as the impending switch to proof-of-stake. It is also a brand new consensus algorithm which is currently undergoing severe stress testing. Vitalik Buterin seems quite pleased with how things are progressing in this regard. The work is far from done, though, but the initial results seem 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 >>

Making Sense Of Ethereums Layer 2 Scaling Solutions: State Channels, Plasma, Andtruebit

Making Sense Of Ethereums Layer 2 Scaling Solutions: State Channels, Plasma, Andtruebit

Construction of the Tunkhannock Viaduct railway bridge in Pennsylvania ( cc ). Roman engineering principles being extended to newuses. Making Sense of Ethereums Layer 2 Scaling Solutions: State Channels, Plasma, andTruebit For ethereum 2018 is the year of infrastructure . This is the year when early adoption will test the limits of the network, renewing focus on technologies built to scale ethereum. Ethereum is still in its infancy. Today, it isnt safe or scalable . This is well understood by anyone who works closely with the technology. But over the last year, the ICO-driven hype has begun to far exaggerate the current capabilities of the network. The promise of ethereum and web3 a safe, easy to use decentralized internet, bound by a common set of economic protocols, and used by billions of people is still on the horizon, and will not be realized until critical infrastructure is built . The projects working to build this infrastructure and expand the capabilities of ethereum are commonly referred to as scaling solutions. These take many different forms, and are often compatible or complimentary with each other. In this long post I want to dive deep into one category of scaling solution: off-chain or layer 2 solutions. First, well discuss the scaling challenges of ethereum (and all public blockchains) in general. Second, well cover the different approaches to solving the scaling challenge, distinguishing between layer 1 and layer 2 solutions. Third, well delve into layer 2 solutions and explain how they work specifically, well talk about state channels , P lasma , and Truebit This article focuses on giving the reader a thorough and detailed conceptual understanding of how layer 2 solutions work. But we wont dig into code or specific implementations. Rather, we focus on Continue reading >>

Plasma Cash Vitalik Buterin Presents The Improved Ethereum Scaling Solution

Plasma Cash Vitalik Buterin Presents The Improved Ethereum Scaling Solution

Vitalik, the famous co-founder of Ethereum, has presented his new idea during a talk live streamed on YouTube : Plasma Cash, an upgraded version of the already existing Plasma. Plasma itself is an on-chain scaling solution for blockchains, which was developed by Buterin and Joseph Poon who also is the creator of Lightning Network. It is a chain-wide scaling solution which optimizes the data passed to the root blockchain whilst reducing transaction fees for smart contracts and decentralized applications. Plasma chains are not sharing transaction data with the root chain, only the hash created by the pre-collected transactions all of them are minimized to a single bit on a bitmap. In case a fraudulent block is submitted, it is refused by the blockchain and the block creator gets penalized. Therefore a huge amount of transactions can be committed on the Plasma chain while the amount of data hitting the root blockchain is fairly low. We have to add that this method only allows for quadratic scaling and that is the main problem here. It is never going to be able to support the exponential growth necessary. Another disadvantage is that every user would need to download all Plasma blocks which also requires a significant amount of resources and time. The upgraded Plasma version runs under the name Plasma Cash developed by Dona Robinson, Karl Floersch and Vitalik Buterin. This could solve the above mentioned issues, at least thats what Buterin said. The exponential scaling is going to be reached with the help of a program, which creates a new coin with a unique ID during each deposit. This coin is going to be unique and non-fungible, whilst representing the deposit amount that was made. Also the coin will be identified by its place in the chain. This results in clients not hav Continue reading >>

Ethereum Scaling Solutions And Tradeoffs Xlnt - Ethereum

Ethereum Scaling Solutions And Tradeoffs Xlnt - Ethereum

Ethereum Scaling Solutions and Tradeoffs XLNT hey, I'm the guy who gave the generalized state channels presentation at ethdenver :) just some small clarifications to the article. I think you might already be aware of some of these In general, state transitions are deterministically finalized, but this finalization comes at the cost of a "challenge period" You can close out a state channel and withdraw to chain (which is what me mean by "finalize") without a challenge period if all parties agree to it. The challenge period is only necessary for unilateral finalization. Also, the state transitions within a state channel itself should finalize very quickly (once everyone has signed the new state). The primary downside of state channels is that it requires you to "open a channel" with everyone you want to do state transitional business with. You can use channels through intermediaries, just like how you can use payment channels to send payments to people you don't directly have a payment channel with. Lastly, I haven't really heard plasma trees described as layer-n, because it's hard to make that terminology consistent. You can have a plasma tree 3 layers deep and run state channels off a "layer-3" plasma chain. You can run state channels between the "layer-3" plasma chain and the root ethereum chain. etc Hey! I really enjoyed that presentation. Slightly off topic, but how can a non-programmer contribute to the research that youre doing? Id love to help and am incredibly passionate and engaged by the type of work youre doing, while having no formal background in it. Im getting a little tired of existing in the exciting space in a silo. And advice you could offer would be greatly appreciated. Thanks! I would say that depends on what skills you do have - math? design? busine Continue reading >>

Blockchain Scalability: When, Where, How?

Blockchain Scalability: When, Where, How?

Blockchain Scalability: When, Where, How? Angel Investors, Startups & Blockchain developers... Blockchain Scalability, a very real problem! Cryptocurrencies are becoming more and more mainstream. In fact, lets check out how popular bitcoin and ethereum have gotten over time. This is a graph of the number of daily bitcoin transactions tracked over the years: And here we have the number of Ethereum transactions per month over the years: Now, this may look very impressive, but here is the thing, the initial design of cryptocurrencies was not meant for widespread use and adaptation. While it was manageable when the number of transactions was less, as they have gotten more popular a host of issues have come up. The scalability problem of cryptocurrencies For bitcoin and ethereum to compete with more mainstream systems like visa and paypal, they need to seriously step up their game when it comes to transaction times. While paypal manages 193 transactions per second and visa manages 1667 transactions per second, Ethereum does only 20 transactions per second while bitcoin manages a whopping 7 transactions per second! The only way that these numbers can be improved is if they work on their scalability. If we were to categorize the main scalability problems in the cryptocurrencies, they would be: The time is taken to put a transaction in the block. The Time Taken To Put A Transaction In The Block In bitcoin and ethereum, a transaction goes through when a miner puts the transaction data in the blocks that they have mined. So suppose Alice wants to send 4 BTC to Bob, she will send this transaction data to the miners, the miner will then put it in their block and the transaction will be deemed complete. However, as bitcoin becomes more and more popular, this becomes more time-consu Continue reading >>

How Will Ethereum Scale?

How Will Ethereum Scale?

Like other public blockchains, ethereumintends to support as many users as it can. The problem is that, today, we don't really know the limits of theplatform. Because of a hard-coded limit on computation per block, the ethereum blockchain currently supports roughly 15 transactions per second compared to, say, the 45,000 processed by Visa. This limitation of ethereum and other blockchain systems has long been the subject of discussion by developers and academics. While ethereum developers might like to highlight how the flexible smart contract platform differs from bitcoin, for example, it isn't unique in regards to scalability. As disappointing as that might sound, there's hope in proposed solutions that havent made it into the official software yet. Ethereum and bitcoin use a combination of technical tricks and incentives to ensure that they accurately record who owns what without a central authority. The problem is, its tricky to preserve this balance while also growing the number of users (especially to the point where average people can use the system to purchase coffee or run applications). That's because ethereum depends on a network of 'nodes', each of which stores the entire ethereum transaction history and the current 'state'of account balances, contracts and storage. This is obviously a cumbersome task, especially since the total number of transactions is increasing approximately every 1012 seconds with each new block. The worry is that, if developers raise the size of each block to fit more transactions, the data that a node will need to store will grow larger effectively kicking people off the network. If each node grows large enough, only a few large companies will have the resources to run them. Despite the inconvenience, running a full node is the best w 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 >>

Buterin Presents Blockchain Scaling Solution That Could Make Exchanges Hack Resistant

Buterin Presents Blockchain Scaling Solution That Could Make Exchanges Hack Resistant

Buterin Presents Blockchain Scaling Solution That Could Make Exchanges Hack Resistant Vitalik Buterin has revealed a new Blockchain scaling solution, Plasma Cash, at the Ethereum Community Conference in Paris. Vitalik Buterin , co-founder of Ethereum , presented a Blockchain scaling solution called Plasma Cash, an even more scalable version of an existing solution called Plasma , during a talk live streamed on YouTube at the Ethereum Community Conference in Paris on Friday, March 9. Plasma Cash was developed by Buterin and developers Dan Robinson and Karl Floersch. Plasma itself is an on-chain scaling solution for Blockchains, introduced by Buterin and Lightning Network creator Joseph Poon in August 2017. Plasma works by optimizing data that is passed onto the root Blockchain, reducing the transaction fees for smart contracts and decentralized applications (DApps). The problems with the scalability of Plasma, according to Buterin, is that every user must download and authenticate each Plasma block, which prevents exponential scaling. To explain the Plasma Cash model, Buterin gives the example that if a user deposits some amount of ether to a crypto exchange or any third party service, a Plasma coin would be created with the same value of ether and a unique ID that cannot be merged or split. In contrast with Plasma, Plasma Cash would only require users to pay attention to the blocks that contain coins they want to keep track of: A user actually only needs to verify the availability and correctness of the Plasma chain only [] at the specific index of the coin, of any coins that they own and any coins that they care about. As for the current practical applications of Plasma Cash, Buterin sees a possibility for crypto exchanges to take advantage of the technology to make t Continue reading >>

Loom Network Launches Ethereum Scaling Solution

Loom Network Launches Ethereum Scaling Solution

Loom Network Launches Ethereum Scaling Solution Anyone who has been following along with Ethereums ongoing scalability issues has probably heard about Plasma and Casper, two upgrades designed to expand Ethereums ability to process transactions and host dapps. Those solutions are still months or possibly years from deployment. This week, however, Loom Network deployed their own scaling solution for dapps to production, along with a test site DelegateCall . DelegateCall is a competitor to Stack Overflow, built as a blockchain-based dapp . Its live now and you can check out its functionality. According to Loom, its backend is completely decentralized but it can scale the same as a commercial application like Stack Overflow. When users answer questions, they receive ERC20 tokens instead of karma for the upvotes their projects receive. Loom Networks scaling solution relies on creating side chains that are bonded to and Ethereum smart contract via a relay. Each dapp gets its own chain, allowing the dapp to scale while still being tied to the security of the Ethereum mining network. These side chains have their own DPoS consensus , and they support custom transaction types like creating accounts, posting messages, and voting. In the future, Loom Network aims to support hundreds or thousands of different dapps, each running their own sidechains. In addition to DelegateCall, theyre currently building mobile games to demonstrate the capabilities of their scalable DAppChains. Theyve already released one web-based game (not a DAppChain-based game), CryptoZombies , that teaches you how to code in Solidity. For blockchain-based applications and organizations to catch on, we need next generation scaling solutions that can support enterprise applications. Whats so exciting about Loom Continue reading >>

Ethereum Scaling Solution, Plasma, Could Facilitate Billions Of Transactions Per Second

Ethereum Scaling Solution, Plasma, Could Facilitate Billions Of Transactions Per Second

Ethereum scaling solution, Plasma, could facilitate billions of transactions per second Christine Chiang , 18 Aug 2017 - Development , Ethereum , Plasma The architect known for conceptualizing the Lightning Network, an off-chain scaling solution for Bitcoin, has done it again. On August 8, Joseph Poon, and Ethereums Vitalik Buterin, published a white paper titled Plasma: Scalable Autonomous Smart Contracts . Poon first conceived the high-level construction for Plasma in mid-2014, before the Lightning Network paper was published, before Frontier was released on Ethereum, and when scaling on Bitcoin Talk was just a theoretical slow moving disaster. However, since the Initial Coin Offering phenomenon culminated into a mad dash for cheap funding, which then proceeded to clog the Ethereum network, it became apparent that this Turing complete virtual machine is massively unscalable . In its current form, every single smart contract and transaction executed on the network must be processed globally. This Turing complete design makes syncing the Ethereum blockchain crushingly slow. The issue of scaling has since been prioritized at the Ethereum Foundation. The Plasma paper details a framework that tackles the problem of throughput. Plasma is structured in a way that allows the technology to perform potentially billions of computations per second. Instead of a decentralized application, or dApp, running as a smart contract on the consensus layer itself, the Plasma design reimagines dApps running as their own blockchains. These smart contracts are incentivized to continue operation autonomously via network transaction fees, explains the paper, Which is ultimately reliant upon the underlying blockchain (e.g. Ethereum). The design results in decentralized application blockchains ( Continue reading >>

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