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Plasma Protocol: How To Pay For 26 Million Transactions At The Cost Of One?

Plasma Protocol: How To Pay For 26 Million Transactions At The Cost Of One?

PLASMA PROTOCOL: How to pay for 26 million transactions at the cost of one? Contributed by BANKEX, an open source proof-of-asset protocol to facilitate digitization & exchange of traditional assets. Tired of Ethereum speed limit and rising transactions costs? We have a solution. Every crypto enthusiast is concerned with the scalability problem; every crypto professional has an aversion to the fact that the market might crash because of it. Vitalik Buterin is one of them, he says, 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. Experts claim that Ethereum scalability is close to its theoretical limit. However, in comparison with the classic payment systems, like VISA or MasterCard, this figure does not surprise at all. January 4th, 2018, Ethereum hit its new record high transaction value, climbing to about 1.35 million transactions. It seems ridiculous to speculate about the blockchain revolution when it takes Ethereum at least 15 seconds to process 65,000 transactions, while Visa completes the same amount only in a second. With an average cost of $3 per single transaction, it is impossible to trade on such slow and insufficient platform. Imagine if someone would offer you to complete 100,000 transactions on any blockchain platform in just one second, paying only for a deposit commission and the ETH withdrawal, with absolutely no transaction fee? Nevertheless, the BANKEX PLASMA technology is already here! By enabling the smart contracts to a large audience, Ethereum has opened up fantastic opportunities literally to every technology, business, and industry sector looking to enrich their activity. At the beginning of the cryptomania everyt 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 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 >>

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 >>

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 >>

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 >>

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 >>

Plasma: Scalable Autonomous Smart Contracts | Hacker News

Plasma: Scalable Autonomous Smart Contracts | Hacker News

Smart contracts are being suggested as the building block of "autonomous corporations" (implying "do anything!") yet nearly anything meaningful basically has to interact with the real world through agents external to the contract for most business cases. Given this severe limitation, could someone clarify what the whole shebang is supposed to be about? I actually saw Vitalik speak last week or so here in Shenzhen came away less convinced than ever of their theoretical utility for anything but a tiny fraction of users. In short, adding a decentralized network of paid/incentivized actors to any existing potential cryptographic problem space (a fair rough summary of the smart contract notion?), in particular the subset relevant for most businesses, doesn't seem to solve anything particularly well and typically decreases critical measures of engineering elegance such as simplicity, comprehensibility, predictability, etc. while increasing negative measures such as technical lock-in to piles of rapidly evolving technologies for which hiring and building is expensive and error-prone. > In short, adding a decentralized network of paid/incentivized actors to any existing potential cryptographic problem space (a fair rough summary of the smart contract notion?), in particular the subset relevant for most businesses, doesn't seem to solve anything particularly well and typically decreases critical measures of engineering elegance such as simplicity, comprehensibility, predictability, etc. while increasing negative measures such as technical lock-in to piles of rapidly evolving technologies for which hiring and building is expensive and error-prone. You could say very much the same thing about most supply-side innovations when they came out. Why buy a factory machine when your wor 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 >>

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 >>

How Big A Deal Is Plasma.io?

How Big A Deal Is Plasma.io?

With this simple tweet, Vitalik Buterin , creator of Etherium may have launched something epically and historically big. He also references his coauthor Joseph Poon the author of the Bitcoin Lightning Network white paper. 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 ones ledger entry into a child blockchain which is enforced by the parent chain, one can enable incredible scale with minimized tr Continue reading >>

What Is Plasma And How Will It Strengthen The Ethereum Blockchain?

What Is Plasma And How Will It Strengthen The Ethereum Blockchain?

What is Plasma and How Will It Strengthen the Ethereum Blockchain? By Joe Liebkind | August 16, 2017 10:22 AM EDT Hydropower: The Key to Bitcoin Mining in the Future? Ethereum co-founder VitalikButerin recently announced Plasma , a scaling infrastructure that will help the Ethereumblockchain handle much larger data sets than is currently possible. For this and other reasons, future cryptocurrency historians will reflect on the second half of 2017 and understand how important this period was for pushing the technology forward. So what problems does Plasma address? Cryptocurrencys future real-world application and feasibility rely on the technologys scalability. While anyone can connect with Bitcoin and begin a transaction, it may take up to several hours for the network to verify and send the coin. This is not a problem with the current uses cryptocurrencies have, but competing with major payment processors is still impractical. Major competitor VISAs credit card processing network can handle 2,000 transactions per second. This delayed transaction time became a sticking point earlier in 2017. Several influential miners and coin-holders gathered to debate a blockchain edit called SEGWIT short for Segregated Witness. The group successfully voted to alter the blockchain with no major chaos or third-party manipulation. The result is a faster Bitcoin, although it still lags compared to other transaction solutions without a clear fix in sight. As a result, other solutions are widening the gap between themselves and the major cryptocurrency, much like Ethereum did with its most recent announcement. Ethereum is an entirely different creature than Bitcoin. It uses similar technology but the coins real value is not its currency strength, but its status as an application platform. Continue reading >>

Plasma Guide: Scalable Autonomous Smart Contracts For Ethereum?

Plasma Guide: Scalable Autonomous Smart Contracts For Ethereum?

The blockchain community is currently discussing different strategies on how to achieve scalability on the blockchain. Plasma is a framework for incentivized and enforced the execution of smart contracts on Ethereum . Plasma, at this point is a proposed framework by Joseph Poon and Vitalik Buterin and was published as a paper in September 2017. At the current moment, the team is about to start development. Plasma is a way to achieve scalable computation on the blockchain autonomously. It makes it possible for the contract creator to persistently use the blockchain without active state transition management. Furthermore, the scalability will also be achieved by decreasing funds that are represented in the spend on a contract to one bit in a bitmap. This will be combined with a MapReduce framework (a model for processing and generating big data sets with a parallel, distributed algorithm on a cluster). Plasma runs on top of an existing blockchain so that no one needs to create transactions on the underlying chain for every state update. The system is constructed to be blockchains on the blockchain. So the state of the child blockchains is committed to the root chain, for example, Ethereum. With Plasma you will set your own rules and set of consensus for your blocks, it doesnt require consensus changes to Ethereum, only rules on how to agree on the current state with the existing pool funds and contract rules. Plasma doesnt require Proof-of-Stake but Proof-of-Ffraud. So if any of your chains is submitted, anyone can see and can be able to disagree if there is an invalid block. Using a nested tree of blockchains that can to the computation. The result that Plasma wants to achieve is that one blockchain can encompass all worldwide computation and reframe them into a set of Continue reading >>

Bankex Solution

Bankex Solution

BANKEX developed Plasma protocol implementation BANKEX has released a proof-of-concept of the Plasma Protocol ETH Exchange network - a Plasma Protocol compatible private blockchain aimed to make ETH send/receive transactions cheaper and faster. No smart contracts or multisignature transactions are allowed on this private blockchain yet. Using different structures of blocks, transactions and consensus algorithm, it can reduce the cost of transactions as well as make them faster, simultaneously having a master contract on the main Ethereum network that can enforce proposed transaction rules on private network. Currently, Ethereum is able to conduct roughly 20 transactions per second. Further, with the current growth rate of Ethereum, the cost of transactions will continue to increase. BANKEX technical team developed the world first private blockchain that supports Plasma Protocol for public audit. And BANKEX immediately got feedback from the community. We are thankful for the support and review! We'll do our best to develop Plasma on Ethereum. Plasma implementations are already happening: @BankExProtocol Plasma concept is simultaneously a protocol for building blockchains that can are supervised by some upper blockchain (in our case - BANKEX Plasma PoC is supervised by the main Ethereum network) and a possible solution to scalability problem. Here at BANKEX we believe that efficiency can be improved by offloading some transactions from Ethereum blockchain to Plasma chains, especially if proper incentives are given to Plasma operators (such incentive can we even in a form of completing with other operators for obtaining end-users). Another advantage is the flexibility of Plasma chain implementation as long as it can be effectively cross-checked by contract on a parent cha 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 >>

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