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Ethereum Scaling Solutions

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 >>

Vitalik Buterin & Joseph Poon Propose New Scaling Solution For Ethereum: Plasma

Vitalik Buterin & Joseph Poon Propose New Scaling Solution For Ethereum: Plasma

We've all witnessed the recent Bitcoin fork on August 1. The whole reason for this procedure was to scale the network, which means to improve its transaction speed and efficiency. Now, Ethereum is planning to do the same and is looking into different scaling solutions. Ethereum founder Vitalik Buterin and Lightning Network co-author Joseph Poon have just released a possible solution: 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 Whitepaper]( ) Why is a Scaling necessary for Ethereum ? The ethereum network can't effectively support many users right now. It's too overcrowded. Similar to the issues that Bitcoin faced, the technology is simply not ready for the sudden high demand and the growing amount of users. The results are that transaction times are increasing and the fees for smart contracts are also rising. There have already been several other proposals to solve this problem, but Plasma has been the most popular one yet (which is probably due to the famous names involved with the project!) The solution for the scaling problem is to minimize the data on the blockchain. Right now, all transaction data is stored on the blockchain - and obviously, that's a lot to handle and is slowing down the network. That's why these scaling solutions propose technologies that reduce the amount of data directly stored on the blockchain, and instead stores them off-chain. "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 se 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 >>

Sharding/doc.md At Develop Ethereum/sharding Github

Sharding/doc.md At Develop Ethereum/sharding Github

The purpose of this document is to provide a reasonably complete specification and introduction for anyone looking to understand the details of the sharding proposal, as well as to implement it. This document as written describes only "phase 1" of quadratic sharding; phases 2, 3 and 4 are at this point out of scope, and super-quadratic sharding ("Ethereum 3.0") is also out of scope. Suppose that the variable c denotes the level of computational power available to one node. In a simple blockchain, the transaction capacity is bounded by O(c), as every node must process every transaction. The goal of quadratic sharding is to increase the capacity with a two-layer design. Stage 1 requires no hard forks; the main chain stays exactly as is. However, a contract is published to the main chain called the validator manager contract (VMC), which maintains the sharding system. There are O(c) shards (currently, 100), where each shard is like a separate "galaxy": it has its own account space, transactions need to specify which shard they are to be published inside, and communication between shards is very limited (in fact, in phase 1, it is nonexistent). The shards are run on a simple longest-chain-rule proof of stake system, where the stake is on the main chain (specifically, inside the VMC). All shards share a common validator pool; this also means that anyone who signs up with the VMC as a validator could theoretically at any time be assigned the right to create a block on any shard. Each shard has a block size/gas limit of O(c), and so the total capacity of the system is O(c^2). Most users of the sharding system will run both (i) either a full (O(c) resource requirements) or light (O(log(c)) resource requirements) node on the main chain, and (ii) a "shard client" which talks to 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 >>

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 >>

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 >>

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 >>

Ethereum Will Soon Test Sharding Tech To Fix Scaling Issues, Vitalik Buterin Hints

Ethereum Will Soon Test Sharding Tech To Fix Scaling Issues, Vitalik Buterin Hints

Ethereum will soon test sharding tech to fix scaling issues, Vitalik Buterin hints Vitalik Buterin has made it clear that designing more efficient scaling solutions is one of the biggest challenges for the Ethereum blockchain and it seems the company is gearing up take on this hurdle head-on. Buterin has indicated the company will soon begin testing its new scaling tech better known as sharding . Talking about the cryptocurrency scam epidemic on Twitter, the young co-founder strongly hinted that Ethereum is close to launching its sharding testnet. While Buterin did not offer a clear timeline, he said that Leeroy a decentralized Twitter rival will be a suitable candidate for the experiment. I hope they can participate in the sharding testnet soon when its ready, the founder responded to a comment asking about a verified Twitter on the blockchain. Buterin has since purged the tweet, but you can still see the full response here: Buterin and lead developer Nick Johnson have often stressed the central role sharding could play in Ethereums plan to move from proof-of-work to proof-of-stake system for verifying transactions on its network. During a talk in Taipei in November last year, Buterin laid out the companys intention to reach Visa levels of scalability within the next three to five years, as reported by Trustnodes. Sharding was painted as a crucial part towards accomplishing this goal. For context, Visa processes upward of 1,500 transactions per second, while Ethereum roughly handles between 10 and 30. The way Ethereum is currently setup requires that a transaction is verified by every single validator on the blockchain, which makes the network inherently more secure but also significantly slower. Sharding basically splits the network into small partitions known as sha 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 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 >>

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 >>

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 >>

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 >>

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 >>

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