Blockchains’s rise over the last three years has been huge. A whole new industry of software developers, innovators, and entrepreneurs are building products on Blockchain. Despite its success, it is still a growing technology. But to keep growing the new blockchain developments need to address a lot of key issues.
It is a combination of these key features:
Plasma is one of Ethereums scalability solutions. For example Ethereum is currently able to make 13-15 transactions per seconds. That is a really low capacity. Especially if you consider that visa is currently processing 20.000 transactions per second. So if cryptos like Ethereum wants to replace visa and act as digital cash, it needs to scale up its capacity.
Plasma can help to improve the transactions per second. It is a technique for conducting off-chain transactions while relying on the Ethereum blockchain. So it still has the same level of security. While solving different problems, they all take operations away from the Ethereum “main chain” and perform them on the “off chain” instead.Here you can learn more about Plasma.
So most Blockchains rely on proof of work for consensus. As a result, you have a lot of people with a lot of computing power pointing that power to the network. So they make it costly if someone wants to be a bad actor. But because a lot of computing power gets lost, proof or work is really wasteful. It also burns a lot of electricity.
So Casper was developed to solve the proof of work problem. With Ethereum 2.0, Ethereum tries to stop the waste of computing power and electricity. So there are two types of implementations. The first one is called Friendly Finality Gadget (FFG) the other one is called Correct Buy Constructions (CBC). FFG is a combination of proof of work and proof of stake. CBC is a completely new concept of proof of stake. Here we explain Casper in detail.
The beacon chain is a brand new proof-of-stake blockchain. It runs parallel to the current Blockchain and tries to solve the scalability problem.
So a smart contract will allow validators to take part in the proof-of-stake protocol. Therefore they have to take a deposit of exactly 32 Ether, for example. When validators deposit into the smart contract, they put it on the beacon chain. So maybe they become active validators and will take part in the proof-of-stake protocol. The beacon chain will randomly select validators for block proposal and votings. This random sampling in the beacon chain is important. As a result, it stops validators colluding and influencing the system. Here you can find everything about Beacon Chain.
If each vote was a transaction, the blockchain would have to process all the votes step by step within a tight time period. This puts a limit on the number of validators that can take part. The more validators that can participate the better because it improves security.
Aggregate signatures work like a petition. So the petition is sent to each validator, who applies their signature in support. To reduce the load on the main chain these petitions are sent off-chain and only fully built-in the blockchain when the petition has enough support. If you want to know more about Ethereum Validator click here.
Sharding is also part of the other blockchain developments. It can realize the performance gains necessary to scale. So every PC that runs on the Ethereum blockchain has to process the transactions in a special order. Despite the fact that the network runs on thousands of PCs, different transactions cannot be processed at the same time. So, for exmaple, the current Ethereum blockchain is one big single chain of blocks that have to process all transactions step by step.
Sharding is like adding new chains to process more transactions. So each shard is a separate blockchain with its own state and transaction history. But all shards also share the same proof-of-stake consensus with the beacon chain. The registered validators on the beacon chain will then become a global pool of validators. So they validate blocks on the beacon chain and the shards. But this is just a simple explanation, click here if you want to know more about sharding.
Smart-contracts are one of the most interesting parts of Ethereum. With them, you can create great DApps and even more. Ethereum smart-contracts are currently written in Solidity or Vyper and compiled into the Ethereum Virtual Machine (EVM) code. As a result, every node executes this code. So the faster the EVM can execute the code the better. But this leads to a lot of problems.
So to solve these problems, eWASM replaces the EVM. eWASM is based on WebAssembly (WASM). Thus, this change will make a huge difference to how many transactions can be processed and added to a block. So eWASM can increase the transaction throughput. As a result, the network will also be more secure, supports more languages and can be portable.
“Blockchain developments” – Conclusion
The new Blockchain developments can support massive on-chain transaction throughout while balancing decentralization and security. So with this foundation, Blockchain technology has the potential to develop an infrastructure for the world’s transfer of value. It also has the potential to be a platform for a new economic system and global collaborations. So be ready for the big changes.
Do you like our article “Blockchain developments in 2019” and you would like to know more? Click here to learn everything about Plasma!