Sidechains - Crypto Academy / S4W8 - Homework post for @pelon53.

Wow greetings to all steemians and thank God for week 8. Happy to be part

Image with imarkup

QUESTION 1

Explain in detail the Sidechains with the use of ZK-Rollups.

Image with imarkup

What are Side chains?

A sidechain is a aspect blockchain this is related to every other blockchain, the so-known as mainchain, through a bidirectional peg. Imagine a international decentralized community of various blockchains. Each has its personal rules, capabilities and objectives, and at the same time as last impartial of every other, it bureaucracy a unbroken ecosystem.
The sidechain is a separate blockchain that runs in parallel with the Ethereum mainnet and works independently. It has its personal consensus algorithm (eg Proof of Authority, Delegated Proof of Stake, Byzantine Fault Tolerance). It is hooked up to the mainnet thru a bidirectional bridge.

Sidechain mechanism has first-rate ability to enhance the capability of present blockchains. This is a separate block chain related to the determine blockchain with bidirectional pegs, making this whole method reversible. Throughout this method, the blockchain is referred to as the mainchain and the extra blockchain is referred to as the side chain.

What are the advantages of the use of a sidechain?

Let's solution that question. The largest benefit of the use of the sidechain is that you may set up and take a look at new software program that may be unstable at the sidechain. If the software program damages the blockchain, the harm is contained within side the sidechain.
Second, a function that accelerates the mainchain due to the fact transactions may be achieved on any sidechain. If builders are disillusioned with the fee and transaction velocity of the principle chain, they are able to provide dapp (decentralized app) to one of the aspect chains.
Third, the sidechain reduces the weight at the mainchain via way of means of permitting it to keep information and system transactions, thereby making the mainchain smaller and quicker even as retaining mainchain integrity.

Sidechain is like this opportunity designed to enhance the offerings supplied by present blockchain. The foremost hassle with present blockchains is saturation, and sidechains are centered on fixing those problems. The
sidechain is a separate blockchain, however it isn't independent. Because they depend upon a form of foremost blockchain. By connecting each blockchains, belongings can freely flow into among the 2 networks.
Since those are specific blockchains, we want that allows you to securely switch finances
from the principle blockchain to the sidechain. One of the maximum famous alternatives is to ship finances or property from the principle blockchain to a particular address.

HOW DOES SIDE CHAIN WORKS?

As many can also additionally find easy, enforcing those sidechains required numerous studies and years of development, which turned into a large challenge. Let's see the way it works in general: First, if cryptocurrencies are dispatched to the supplied deal with and the budget arrive there, the ones budget might be used for different purposes. Might be used. Now no longer getting used. It freezes at once till it's miles confirmed. After confirming that those budget aren't getting used anywhere, the sidechain might be notified. The sidechain routinely creates the identical quantity of cryptocurrencies or tokens, however it relies upon at the crypto belongings used within side the sidechain. As quickly as a consumer gets a crypto asset at the sidechain, it is able to be exchanged and moved to the sidechain with out the intervention of the principal network. The consumer manages and makes a decision what to do with.

MORE TO SIDE CHAIN

Sidechains can considerably extend the functionality of your application and can be protected with unique forms of blockchains and cryptocurrencies. If the mainchain does now now not meet the requirements of the application, it sincerely transfers the token to a customized sidechain in which it can execute all the business company not unusual place feel. When developing an application that allows multiple cryptocurrencies, transferring the not unusual place feel up the sidechain can save an entire lot of artwork required to duplicate the same functionality in cryptocurrencies that do not use the same shape of smart contract. This moreover reduces mainchain transaction costs because it high-quality needs to maintain the not unusual place feel chargeable for talking with the sidechain. The sidechain can use unique consensus mechanisms and have unique block times and competencies without changing the discern blockchain protocol.
In summary, Sidechain extensively expands the abilities of cryptocurrencies, reduces expenses and permits the transfer of assets amongst blockchains. There are several strategies to integrating one in all a type blockchains with one in all a type protection considerations. Building a sidechain is a completely complex challenge in itself, but present day solutions can truly simplify the shape of your application, allowing you to assist multiple cryptocurrencies with a single code base.

Let us look at Rollups?

ZKRollups is one of the alternatives being developed to create a layer 2 that increases scalability through bulk conversion processing embedded directly in unmarried transactions. Plasma creates one transaction at the same time as the conversion, but ZKRollups handles numerous transfers directly as unmarried transactions. The smart contract destroys and verifies all transfers made within the unmarried transaction.
Rollups are a kind of scaling answer that works via way of means of executing transactions outdoor of Layer 1 and exposing transaction records at Layer 1. This lets in you to unharness safety from Ethereum's consensus even as increasing your community with rollups.
If you move the calculation off the chain, you can basically do the whole thing. This is because only part of the summary transaction data needs to fit into the Ethereum block. For this purpose, rollup business are done on a separate chain and can also run a special rollup version of the EVM. After completing the transaction for Convolution, next step is to combine with Send it to the main Ethereum chain. totally This process is called convolution because it basically executes a transaction, extracts data, compresses it, and connects it to the main chain in batches.

ZK rollups generate cryptographic proof that may be used to validate transactions. Each transaction batch has its own “evidence of validity” this is dispatched to the primary chain.
ZK reduces compute storage resources for block validation by reducing the amount of data contained in a transaction. Zero knowledge of all data is required.

A SIMPLE VIEW

The ZKRollup scheme includes sorts of users (transactors and repeaters). Traders create transmissions and broadcast transmissions over the community. Transmission statistics includes indexed "sender" and "receiver" addresses, transaction values, community charges, and nonce. A shortened model of the deal with with an index of three bytes reduces the want for processing resources. If the transaction quantity is extra than or much less than zero, deposits and withdrawals are generated accordingly. The clever settlement writes statistics to 2 Merkle trees. The sum of the addresses of 1 Merkle tree and the interpretation of some other Merkle tree.

There are two types of users in the ZKRollup schema.

Transaction Relay. Transactors translate to the rest of the network and then broadcast it. information transfer. Consists of information indexed to/from a nonce that constitutes a stored processing resource ( ) with addresses, transaction values, network charges, and 3-byte indexed versions. address. Therefore, deposits and withdrawals occur when the transaction amount is greater than or less than zero. Data is also stored in two Merkle trees in the smart contract. One has addresses and the other has transfer amounts. Repeater accumulates a significant number of transmissions to form a line. The repeater is also responsible for generating SNARK attestations. This proof is a hash that shows the difference between the current state of the blockchain and its previous state. The term "state" simply means the "state of being" of a person. The SNARK proof compares a pre-transfer snapshot of the blockchain to the blockchain binding (i.e. wallet value) after the transfer and pushes changes only to the underlying network associated with the verified hash.

Merits of the Platform
Reduce the fees users pay for transfers. This is much faster than plasma and bullish convolutions. The computation of block is performed in parallel computation to facilitate distribution.
Demerits of the Platform
The security approach is based on a low level of trust as a centralized system is recommended during the initial installation of the ZKRollups. Quantum Computing risks compromising the blockchain.

QUESTION 2

Explain the Liquid Network side chain

Liquid Network may be a sidechain-based profitable network that grants quick and good secure Bitcoin transactions and issuance of 4,444 digital assets. Liquid, Bitcoin
’s sidechain, allows Bitcoin (BTC) to move
between Bitcoin’s mainchain and Liquid’s sidechain via a verifiable 1:1 peg.
This is a platform that helps bring institutions that transact cryptocurrencies worldwide. Furthermore, it makes Bitcoin’s transactions and digital issuance faster. It provides a number of vital features for users who trade and exchange cryptocurrencies especially bitcoin;
It provides fast and final settlements in under few minutes, BTC on the liquid Sidechain which is also known as liquid Bitcoin can reach final settlement. It provides confidential transactions.
The financial information like the kinds of assets transferred and amount transferred are kept confidential
Tokenization of the assets so on the liquid Sidechains, there is issuance of new tokens to represent other digital assets such as securities and even money. There is a provision for interoperability
Liquid Network may be a Bitcoin sidechain that aims to supply fast and confidential transactions between major trading platforms. Canada Project was born in 2015 and launched as a testnet in May 2017. However, Liquid Network version 1.0 did not debut on the Bitcoin network until last October. On a 4,444 basis, 4,444 organizations have chosen to use the technology, including 4,444 Rock Trading, BitMEX, BnkToTheFuture, and most recently Bitfinex, which will introduce 4,444 stablecoin Tether to the Liquid network.

Source

What is liquid Network?
Scalability Issues
It has been mentioned several times that the current blockchain of Bitcoin (BTC) and other cryptocurrencies has rather low bandwidth, limiting the scalability of these solutions in a global context where thousands of transactions per second must be processed. Low scalability means high data rates, congested networks, pending transactions, and long confirmation times. Very high fees in 2017 and confirmation times in excess of 24 hours.
There are several processes to overcome the ones limitations and permit the ones disbursed systems to machine loads or hundreds of transactions in step with second. The best way is to increase the blockchain block size
to consist of more transactions.
and reduce fees. This is extraordinarily similar to Bitcoin (BCH), which increased the Bitcoin (BTC)
maximum block size
from 1 MB to the cutting-edge 32 MB.
The problem with is that this method requires more hardware resources (more bandwidth, walking memory and storage) to sincerely control the node. This has a bent to exclude the most confined nodes, partially restricting the spread of the network. However, besides the ever-developing computing electricity of devices, a superb assignment is that blocks need to be disbursed over the network.

ROLE OF THE NETWORK

It should be understood that the network is managed by its members, including major financial institutions. During this time, the block stream has no significant effect on this network. The liquid network is based on a consensus strategy called STRONG LINK. It is important to note that the often suspicious group of public servants, known as public servants, replaces the costly claim of proof of work.

Advantages of Liquid Network Sidechain

The main advantages of the sidechain are more transactions per second and shorter confirmation times. The result is fast money transfers at very affordable prices. Details Liquid Network provides: Instant transfers between exchanges, market makers and specific wallets;
The sidechain allows a lot of capital to move quickly from one market to another, increasing the efficiency of traders and thus increasing the efficiency of trading operations. 4,444 use of LBTC tokens pegged to the Bitcoin equivalent of in the corresponding wallet on the exchange: 4,444 auditable audits: Unlike other technologies, Liquid Network users check reserves for various assets offered by 4,444 exchanges. Confidential Transactions Means Better Privacy Than Bitcoin. The liquid sidechain network is unaffected by the transaction analysis tools already used in the Bitcoin and other currency blockchains. All private nodes on the Liquid Network are guaranteed and trusted as they are run by fiduciaries like major stock exchanges. Decentralization is supported. Sidechains also maintain some degree of decentralization because sidechains are managed by many large organizations as well as one organization. This decentralization contributes to network security as it is much more difficult to conduct hacker attacks on decentralized solutions. Disadvantages
This solution has its drawbacks. First, the fact that sending bitcoins to a sidechain is faster, more efficient, and cheaper in terms of network fees can pose a slight threat to miners. When most transactions are unlikely to move from the Bitcoin blockchain to the Liquid Network side.

QUESTION 3

Describe the steps to connect the metamask wallet and polygon network wallet. Show screenshots.

Steps involved in order to connect the metamask wallet and the polygon network wallet are:
kindly Google for metaMask.io and you will have something like this below;

Source
Next step will be to download the wallet i.e add it to your chrome extensions as shown in the screenshot below:

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After successful download, it will show the option to remove it from the extension if you choose, as shown in the screenshot below;

[Source (metamask.io)

Now that you've added a metamask wallet to your Chrome extension, you need to understand that if you already have a metamask wallet registered, you only need to import it. Otherwise, you need to register a recovery phrase to keep it safe.
The next step is to visit polygon site since we are required to connect it with metamask.

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Next step after connecting on metamask is to get started on metamask by clicking on GET STARTED

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The next step after clicking Start is to go to a new page where you need to import your wallet if you already have or have created one.

we are creating a new metamask wallet account therefore, we will be required to input the password to our wallet, read and accept the terms and create wallet.

The next page will display a video which you will be required to watch to learn about your recovery phrase, after watching it, click on next

what will be required is for us to link it with our polygon network wallet

QUESTION 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.

In order to answer this question, i had to google search for Polygonscan block explorer.
You get all the information about the blocks of the polygon. You would need to search the block number hence you will get all the details about a particular block.

[Source](polygon scan)

When will the block 25,000,000 be generated?

To answer this question, we need to search for the block number in the search box of the polygon block explorer site. The block number was inputted into the search box.

[Source](Polygon scan)

The following details were seen as shown below:

The block number is expected to be generated in approximately 102 Days, 13 hours, 45 minutes, 12 seconds at the time I am doing this task. The latest block that is generated at the time I am doing homework is #20779817.

In order to receive details this block number 25,000,00 is generated you can turn on the notification bell for an alert, which can be seen in the bottom part of the picture.

For Block #12,000,000
Details about block number 12,000,000 can be retrieve via similar process of polygon block explorer site Block Explorer for Polygon. Kindly search for block number #12,000,000 in the search box to get details about the block as thus:

[Source](polygon scan)

Matic price: $0.38/matic

Hash
0x54c6805f441801ea05620f26950ca70c401e1642ab27f76d5097f9f500689965

Parent Hash

0x3592bd9a6a5ad7f855d5c1fca02c8d4ac8b5e24f99af3c6706beba0b37222ce7

Sha3Uncles:
0x1dcc4de8dec75d7aab85b567b6ccd41ad312451b948a7413f0a142fd40d49347

As at the time writing this report, when block number #12,000,000 is created the price of 1 MATIC is $0.38 and current price of 1 MATIC is $ 1.78 The price of MATIC asset now is approximately 4.6 times the price during the creation of block number #12,000,000

CONCLUSION

ZK-Rollups are now used in the ethereum blockchain.

I have attempted in connecting my metamask wallet with the polygon NETWORK wallet.

It's nice to participate in this course.

cc:
@pelon53

Thanks.
@charis20