Sidechains - Crypto Academy / S4W8 - Homework post for pelon53
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Edited in Canva
Great minds, I'm here again with my homework post for @pelon53 in the week 8 of the 4th season in the Steemit Crypto Academy.
Welcome to my homework post.
1.- Explain in detail the Sidechains with the use of ZK-Rollups.
SIDECHAINS
Sudechain just as the name implies is a side or additional chain built on an existing blockchain, the sidechain directly connects with parent blockchain in a way that sidechain token value is fix to that of the parent blockchain.
Sidechians are independent chains that does not depend on the main blockchain to function. They are sole responsible for their security and a sidechain maintains its security through mining, in a case of low mining power the sidechain becomes porous and could be hacked.
Though the sidechain value is pegged to that of the parent blockchain, the peg value will be compromised in a case where the sidechain is been hacked but the damage effect will not affect the parent chain and vise versa.
The sidechian mechanism was created with the aim of allowing digital assets to be transferred and used securely from one blockchian to another
Sidechian also help in the enhancement of blockchain functional capacity by solving the scalability problems faced by many blockchains.
The process of fund transferring from a main blockchain to a sidechain is initiated when users sends their tokens to an output address and lock the token using a smart contract. The transaction is validated and confirmed then the corresponding amount of token is sent to the sidechain wallet and the user can now use the tokens to transact on the sidechain. In the case of transferring the token back to the parent blockchain from the sidechain, the token goes through the process of burning.
Sidechains with the use of ZK-Rollups
ZK-Rollups are layer 2 solutions sidechain built on Ethereum blockchain, it uses SNARKS or STARKS to produce validity proof of transactions.
The sidechain get transaction data from the blockchain and send these transaction details off-chain through smart contract. The transaction data is then verified by the network validators, a confirmed validated transaction proof is then sent back to the parent blickchain.
ZK-Rollups roll up series of transactions into one transaction and this is significant because it reduces the data size of transaction thereby solving the issue of scalability on the blockchain.
ADVANTAGES OF ZK-ROLLUPS
ZK-Rollups solves the issue of scalability on he blckckain.
ZK-Rollups is significant because it reduces the data size of transactions my rolling them up.
With the ZK-Rollups users pay considerably reduced amount for transaction fee.
ZK-Rollups is reliable because it adds only validated and confirmed transactions to the blockchain and disregards every false transaction.
DISADVANTAGES OF ZK-ROLLUPS
The generation of validity proof by ZK-Rollups is very complex.
The use of quantum computation can make the blickchain prone to hackers.
The generation of a validity proof of transactions takes time.
2.- Explain the Liquid Network side chain
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Source
The Liquid Network is a sidechain of the Bitcoin Network, it is an inter-exchange platform which is use to connect many crypto exchanges and financial companies in the network. It was launched in 2017 by Samson Mow and Joseph Weinberg.
The Liquid Network Sidechain is less of a decentralized platform because it is own and managed by entities.
The Liquid Network has its own governance token known as Liquid Bitcoin (L-BTC) and the value of this token is fixed to the value of Bitcoin meaning that 1 L-BTC is equal to 1 BTC. The Liquid Network token has its functions limited to the network alone, that is it can not be traded with or used for other purposes outside the platform.
Bitcoins are deposited into the Liquid Network Sidechain through a process known as peg-in and one L-BTC equals one BTC. However, BTC are peg-out when users wants to withdraw their BTC from the platform. The process whereby assets are peg-in and peg-out in the Liquid Network Sidechain is done by the Liquid Federation members.
Source
Features of the Liquid Network
The Liquid Network offers the following features;
Fast transaction rate: Transactions on the Liquid Network platform gets executed as fast as two minutes, meaning that Bitcoin can be easily converted to L-BTC and vise versa and this takes only but 2 minutes for the transactions to be executed.
Transactions privacy: Users transactions on the Liquid sidechain are kept away from the public, transaction details are limited to only the sender and recipient. User A can not know the amount and type of asset user B deposited or withdraw from the platform, thereby keeping users financial details away from the public.
Efficient operation: The platform enhances efficiency thereby allowing exchanges to connect without interruption.
Creation of New Assets: Any user on the Liquid Network Sidechain can introduce new asset such as stablecoins into the platform and these assets can afterwards be traded with on the platform.
3.- Describe the steps to connect the Metamask wallet and the Polygon network wallet. Show screenshots.
The steps below are taken in the connection of the Polygon network wallet with the Metamask wallet.
- The first step is to visit the Polygon wallet website and then click on Polygon wallet.
Polygon wallet
- Click on ConnectWallet.
Polygon wallet
- I selected the mobile option since I'm using a mobile device for the operation. Then click on connect.
Polygon wallet
- List of wallets to connect with will come up, select Metamask wallet then click on Just once.
Polygon wallet
- You'll be navigated to the Metamask wallet, here you'll be required to input your Metamask wallet password and login to be able to connect to the wallet.
From my Metamask wallet account
- After a successful login to the Metamask wallet, you will receive a pop up to connect the Polygon wallet with the Metamask wallet, click on connect.
From my Metamask wallet account
- The wallets has been successfully connected. To access the wallet click on the three dash lines at the top and then click on browser.
From my Metamask wallet account
From my Metamask wallet account
A screenshot showing the connected wallets
From my Metamask wallet account
4.- According to the polygonscan block explorer, when will the block 25,000,000 be generated? Show screenshot. Explore the 12,000,000 block, at that time, what was the price of the Matic? Show screenshots.
- To find out when block 25,000,000 will be generated, we visit the polygonscan website. Then input the block number 25,000,000 on the search box.
polygonscan
From the Screenshot below it can be seen that the Estimated Target Date for the generation of the block number 25,000,000 is on Tue March 1st 2022 by 21:50:09 GMT+0100 (West Africa Standard Time).
That is a total number of 124 Days, 18 Hours, 12 Mins and 30 Secs is remaining for the generation of this block.
The Current Block number is #20688325 while the Remaining Block numbers to the generation of block #25000000 is #4311675.
Polygonscan
Exploring block #12000000
Input the block number #12000000 on the search box.
polygonscan
- Informations about the block number #12000000 can be seen on the screenshot below.
Polygonscan
Block Height: 12000000
Timestamp: 227 days 17 hrs ago (Mar-14-2021 09:35:48 AM +UTC)
Transactions number: 14
Validated by: 0x7fcd58c2d53d980b247f1612fdba93e9a76193e6 in 6 secs
Block Reward: 0.00877199352 MATIC
Difficulty: 15
Total Difficulty: 99,921,518
Size: 5,826 bytes
Gas Used: 3,022,128 (15.11%)
MATIC Price: $0.38 / MATIC
Hash: 0x54c6805f441801ea05620f26950ca70c401e1642ab27f76d5097f9f500689965
Parent Hash: 0x3592bd9a6a5ad7f855d5c1fca02c8d4ac8b5e24f99af3c6706beba0b37222ce7
Conclusion
Sidechains allows the connection of exchanges on a blockchain and it also allows the transfer of asset from one blockchain to another. It increases blockchain capabilities, by offering scalability and reducing the cost of transactions.
Thank Prof. @pelon53 for the wonderful lecture, the lecture was really impactful as I've gotten to know more about Sidechains and the different features they offer.
