Sidechains - Crypto Academy / S4W8 - Homework post for pelon53

QUESTION 1:

ANSWER 1:

Zk-rollups are created for second layer construction of ethereum blockchain, it helps in better scalability by bulk transfer of transactions rolled into a single transaction. Here plasma creates one transaction per transfer, zk-rollups bulk up many transactions into a single transaction. The Blockchain's smart contract expand transactions and verify all the transactions which are bulked up under a single transaction.

To record the validity of the block over the blockchain a zero knowledge proof approach is used. Zk helps in saving both storage resource and computation power by reducing the amount of data kept under a transaction.

Let's see advantages and disadvantages of zk-rollups.

Advantages :

• Less fess per user transfer.
• Faster than the optimistic rollup and plasma.
• Blocks are processed in a parallel computing space which encourages Decentralisation.
• Data under a transaction is reduced which increases scalability.

Disadvantages :

• The data is needed to be optimised to use the benefits of zero knowledge.
• The zk-rollup's security scheme assume a level of unverifiable trust.
• Quantum computing may lead to hacking of the blockchain.

The users using the DApps running with zk-rollups suffers less transaction fees. It requires very much computational power to create a zk proof.

Example of ZK-Rollup:

zkSync is a Zk-rollup currently running over the Ethererum mainnet.

The first ever practical application of ZK-Rollup is the zkSync it's up since june 2020, This project is completely open source and it provides significantly better performance, Dapps can shift their capital from layer 1 to layer 2 quickly and can carry the benefits of 2000+ TPS.

Let's open our ZkSync wallet and connect it with our existing metaMask wallet.

• Step 1: Go to the ZkSync wallet main website and click open wallet.

• Step 2: Now select the Meta Mask wallet and enter the password for your metamask wallet.

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• Step 3: Now our ZkSync wallet is connected to Meta mask wallet and we can quickly add our funds from Layer 1 to Layer 2 wallet.

QUESTION 2:

ANSWER 2:

The liquid network was created over the blockchain network in the year 2017 by the founder of blockstream platform "Adam Back", This implementation of liquid network unlocks higher speed in the transactions, enhances security and also provide privacy, It is the first sidechain of bitcoin blockchain.

It offers faster speed, It completes the transaction successfully within 2 minutes otherwise Conventional bitcoin blockchain network completes it in 10 minutes, It also added support for integrating different tokens, Here we also get the liquid bitcoin token(LBTC) whose price is same as the original bitcoin token, It means in replacement of original token there is a Liquid Bitcoin which doesn't affect the price of bitcoin, To exchange BTC to LBTC we need to follow a procedure called pegging In(peg-in) of cryptocurrency, this process requires 102 times confirmation and verification by the miner in the BTC network, To exchange LBTC to BTC we need to follow a procedure called pegging out(peg-out) and this process is quite slow and it takes around 17 minutes.

^BlockStream

Features of Liquid :

• Make transaction faster.
• Improved confidentiality.
• Improved security.
• User can get various assets in liquid form in the liquid side chains and can trade them in exchange of other liquid token quickly.
• Provides privacy.

Supported Assets over Liquid Network :

QUESTION 3:

ANSWER 3:

Let's see the steps of connecting the meta mask wallet to the polygon network wallet:

• Step 1: Go to the Polygon Network website and click the polygon wallet.

• Step 2: Now on the next page select meta mask wallet because we want to use our asset from meta mask wallet to polygon wallet.

• Step 3: Now your metamask browser extension will pop up and ask weather you want to connect your wallet to the polygon site, So, here we will click on connect button.

• Step 4: Now meta mask will ask for the signature and we need to click the sign button.

• Step 5: Now our meta mask wallet is connected to polygon wallet and we can use our asset from meta mask wallet to polygon network is build over ethereum ecosystem and meta mask wallet is also ERC20 wallet.

QUESTION 4:

ANSWER 4:

To gather these information I go to polygon network explorer called PolygonScan and searched for the blocks height using the highlighted search bar provided over the blockchain explorer.

According to polygonscan the block 25000000 will get generated after a estimate time of 109 days 04 hours 58 minutes 36 seconds and the remaining blocks until block 25000000 will get generated is 4288883 and current block height is 20711117.

According to polygonscan the price of MATIC was $0.38 when the block 12000000 was generated.

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Zk rollups are created for second layer for ethereum blockchain which improves scalability by rolling up many transaction into a singlr transaction will lesser amount of data under each transaction which is faster and charge less fees also it's processing is done parallel to the main chain which reduces the load over mainchain.

Liquid network is the first sidechain of bitcoin network, It offers faster transactions which takes around 2 minutes and we can use different assets over their and can be exchanged via the L-BTC token whose's price is in the ratio of 1:1 to the BTC token, converting of BTC to L-BTC is called peg-in and converting of L-BTC to BTC is called peg-out.