Sidechains - Steemit Crypto Academy - S4W8 - Homework Post for @pelon53

in hive-108451 •  3 years ago 

Hello All Steemians !!!

On this occasion, I will try to take a class at Steemit Crypto Academy. I am interested in joining this class because there are many new lessons that I will get here. I will do homework task from professor @pelon53. Lesson discussion about Sidechains. Lets try...

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

ZK-Rollups is present as Sidechains especially on the Ethereum network to be a solution that is able to manage the system to be better and friendly to users. The function of ZK-Rollups is to reduce and minimize scalability and cost issues on the Ethereum network so that users have an alternative that can be used. The contribution of ZK-Rollups is very influential here to provide satisfactory results and improve network quality. ZK-Rollups is directly involved with the transaction verification and validation process, thus making the network faster and less costly.

In this case, ZK-Rollups is the second layer and ETH is the first layer on the network. Here has been the development of the functionality of the ETH or layer 1 network which aims to increase scalability by making it compatible. To achieve this goal, ZK-Rollups works by collecting and rolling multiple transactions into a single transaction. Then ZK-Rollups work on the second layer or sidechain to process the verification and validation of the transaction. This will reduce the problems that exist in the network so as to increase scalability and manage costs.

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zkSync is a Sidechain that uses ZK-Rollups as technology or smart contracts running on the network. It aims to solve the scalability problem of the Ethereum network with its functions and characteristics. zkSnyc rely on math that has been developed to produce a very useful cryptographic system. This has eliminated the validator function on the network because it is a system that functions to carry out the verification and validation process of transactions quickly and accurately. This is evidenced by the involvement of transactors and relays which have different roles. Transactors are users who make transactions on the network and Relays are those cryptographic systems that roll all transactions and process them off the network or sidechains.

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zkSync has ZK-Rollups which are very useful for users by providing guaranteed Uncapped Security. This shows that ZK-Rollups does not have a transaction limit that can be processed safely. ZK-Rollups also allow 10-Minute Finality to complete transaction processing quickly and efficiently between layer 1 and layer 2. ZK-Rollups have a very low fee of around $0.5 per transaction. All of this proves that zkSync is the Sidechain that relies the most on ZK-Rollups in running the system and its operations for Ethereum network users.

In the cryptocurrency world, zkSnyc has a wide ecosystem and high adoption in various fields involving all users and the ETH network ecosystem. This is because the use of ZK-Rollups on zkSync is very beneficial for users and all parties involved with it by providing the best solutions and alternatives to improve the quality of the ETH network, especially in terms of managing scalability and costs. The functions and characteristics of ZK-Rollups are the factors that make it reliable as sidechains on the ETH network which has dominance in the cryptocurrency world until now.

AdvantagesDisdvantages
Provides high scalabilityThere are difficulties in calculating the ZK test
Reduce transaction processing timeInitial setup is done with a centralized scheme
Manage low transaction feesPossibility of hacking

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Explain the Liquid Network Sidechains

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Liquid Network is present in the cryptocurrency world as a sidechain of the Bitcoin network to increase speed and provide confidentiality of Bitcoin transactions. This is very useful and profitable for traders and exchanges because they can rely on this network to carry out trading activities. In this case, Liquid Network can be used as a solution and alternative that provides a high-speed network in the transaction and issuance process of digital assets. This is an innovation and a breakthrough that has a positive impact on the Bitcoin ecosystem.

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The way Liquid Network works is with a Two-Way Peg. Peg-in is carried out by traders to convert BTC to L-BTC and Peg-out is carried out through federation members to convert L-BTC to BTC with a 1:1 ratio of each conversion made. Liquid Network also enables Asset Issuance. Traders can get assets like USDT from this network which can be traded quickly and at high liquidity. Liquid Network is an Open Network that allows traders to carry out all kinds of transactions such as sending and receiving assets and issuing new assets by connecting wallets on this network.

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In the world of cryptocurrency, Liquid Network has a wide reach and has many federation members. Its good quality makes it continue to grow and has high adoption in various fields and the cryptocurrency ecosystem. Many platforms that have a good reputation are involved to expanding the reach of the market and traders. Its function that allows traders to transact and issue assets in the form of stablecoins and other coins is very helpful for traders in dividing investments and fulfilling trading needs.

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Liquid Network features are as follows:

  • Rapid Transfers
    This feature is very useful for traders in processing Bitcoin transactions which only takes 2 minutes. This keeps the trader from spending a long time in carrying out trades.
  • Issue New Assets
    This feature is very useful for traders in issuing stablecoins and security tokens. This allows traders to invest and trade with multiple asset options.
  • Confidential Transactions
    This feature is very useful for traders in maintaining the security of information and data owned by traders. This gives traders privacy from third parties and is able to prevent hacking.
  • Secure Trading
    This feature is very useful for traders in carrying out trading activities with guaranteed security. This allows traders to use the Liquid Swaps Tool which has low risk.

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Describe the steps to connect the Metamask wallet and the Polygon network wallet

  • I opened Metamask Wallet and clicked on the account picture at the top right of the screen.
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  • I clicked Settings at the bottom of the screen to configure Metamask Wallet.
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  • I clicked on the Network feature and added a new network. I filled in all the necessary data to connect Metamask Wallet with Polygon Network Wallet. The data are as follows:
    Network Name is Matic
    New RPC URL is https://rpc-mainnet.maticvigil.com/
    Chain ID is 137
    Currency Symbol is matic
    Block Explorer URL is https://polygonscan.com/
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  • I have successfully connected Metamask Wallet with Polygon Network Wallet by selecting the network that I configured earlier.
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According to the polygonscan block explorer, when will the block 25.000.000 be generated? Explore the 12.000.000 block, at that time, what was the price of the Matic?

  • I visited the website https://polygonscan.com to find information of block 25.000.000 and 12.000.000.

  • I filled in 25.000.000 in the search field and it shows a block of 25.000.000 will be created on Monday 15 February 2022 at 02:20:59 GMT+0700 or the equivalent of 109 days 6 hours 23 minutes 5 seconds.
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  • On the same website I filled in 12.000.000 in the search field and it shows a block of 12.000.000 was created on March 14, 2021 at 09:35:48 +UTC or the equivalent of 226 days 21 hours ago. The price of the Matic is $0.38.
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Conclusion

ZK-Rollups as a Sidechain is very helpful for the Ethereum network to solve problems that have negatively impacted users in the cryptocurrency world. Problems in terms of scalability and transaction fees are well managed with the function of ZK-Rollup which collects or rolls multiple transactions into one transaction. This will increase the scalability of the network and manage low transaction fees so that it can benefit users.

Liquid Network as a Sidechain really helps the Bitcoin network by providing high transaction processing speed and confidentiality of transactions made by traders and exchanges. The features of the Liquid Network are very useful and beneficial for traders and exchanges because they provide many advantages and convenience in carrying out trading activities in the cryptocurrency world.

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