Read the major expansion plans of Ethereum in one article

The current Ethernet Square is a whole monolithic block chain (Monolithic blockchain) : It provides security for themselves, perform their own transactions and maintain their own data availability .

However, this traditional type of blockchain, that is, a chain that provides itself with layers of security, execution, and data availability, has inherent limitations because it “does everything” .

These limitations will bring higher transaction costs to users.

This is because the scarce block space in the execution layer of Ethereum , coupled with the increasing demand for network usage , has caused network congestion and pushed up transaction costs .

In other words, a monolithic blockchain can only process so many transactions at a time.

In order to solve these limitations, developers and researchers in the Ethereum ecosystem have created a series of different scalability solutions in recent years . These solutions have different presentation methods and scales, but most of them are implemented as Ethereum-centric execution layers , providing cheap and fast Crypto transactions.

Nowadays, many new scalability solutions are already available, and more solutions are coming soon. In order to keep up with what is currently happening, this article will lead readers to understand the current scalability solutions of major Ethereum!

Off-chain expansion vs. on-chain expansion

At present, the Ethereum community uses both the off- chain expansion strategy and the on- chain expansion strategy .

  • Expansion of the chain (off-chain scaling) refers to the underlying chain Ethernet Fong provide external perform any innovative ways. People call these innovations ” Layer 2 ” (L2 for short) , which means that the execution of transactions is performed on the second layer of the network outside of Ethereum, thereby optimizing the performance of Ethereum L1.
  • Expansion chain (on-chain scaling) means to increase the throughput (i.e., volume can be processed per second) block chain while any of its modified directly . Although such Rollups and Validiums such as expansion program under the chain expands ethernet Square in the short term, but long-term supplement strategy Ethernet Square network is to achieve fragmentation (sharding), also about Ethernet Square, L1 into has shared security number of pieces of fragmented chain (shard chains).

Understand L2

Read the major expansion plans of Ethereum in one article

Drawing: u/emkoscp

1. Rollups

Rollup is a scalable solution, through the implementation of trade execution layer on top of its own optimized , and transaction data posted to an Ethernet Square (later possibly other L1s public chain) on . In this way, the Rollups chain directly inherits the security guarantee of Ethereum L1 .

Zooming in, there are currently two types of Rollups: ZK-Rollups and Optimistic Rollups .

1) ZK- Rollups uses an encryption certificate called zk-SNARK to “roll up” many off- chain transactions to form a verifiable batch of transactions . Then, these smaller cryptographic proofs will be effectively published on Ethereum L1 .

To put it simply, off- chain execution + submission of on-chain data through zk-SNARKs = ZK-Rollups .

Read the major expansion plans of Ethereum in one article

Loopring is one of the most popular zk-Rollup projects in the DeFi field

The Rollups network based on the ZK-Rollup scheme that we can currently use includes :

  • Loopring

  • Polygon Hermez

  • zkSync

2) Optimistic Rollups  also “roll up” many transactions and submit them to the Ethereum L1 chain in batches, but this scheme does not use zero-knowledge proofs to prove the validity of transactions: Optimistic Rollups assumes “optimistically” The validity of the transaction , unless the validity of the transaction is successfully challenged through the so-called ” fraud proofs “.

Simply put, off- chain execution + on-chain data + fraud proof = Optimistic Rollups .

Read the major expansion plans of Ethereum in one article

Arbitrum is an L2 network based on the Optimistic Rollup solution

The Rollups network based on Optimistic Rollup scheme that we can currently use includes :

  • Arbiter One

  • Optimism

2. Validiums

Read the major expansion plans of Ethereum in one article

DeversiFi is currently the largest L2 project based on the Validium solution

Another scalability solution similar to Rollups is Validiums . 

Validiums operates similarly to ZK-Rollups, because this solution also relies on zero-knowledge proofs to batch and execute transactions . But compared with ZK- Rollups , Validiums keeps its data availability off- chain (that is, transaction data is stored off-chain) , while the data availability of ZK- Rollups is stored on the Ethereum L1 chain .

This dynamic feature makes Validiums this expansion solution has high performance (Validiums can provide higher throughput than ZK-Rollups) , but at the same time it also makes this solution have a managed nature to a certain extent (this means that Validiums The operator can freeze or confiscate the user’s funds) .

Read the major expansion plans of Ethereum in one article

Sorare is a fantasy football game powered by Validium

In other words, off- chain execution + zero-knowledge proof + off-chain data = Validiums .

The current Validium-based projects that we can use include:

  • DeversiFi  ( Decentralized Exchange) :

  • Immutable X  (an L2 network centered on NFTs) :

  • Sorare  (a fantasy football game) :

3. Volitions

Read the major expansion plans of Ethereum in one article

Volitions is a hybrid expansion solution that allows users to choose between “ZK-Rollup mode” and “Validium mode” .

In practice, this means that users of Volitions can enable transactions to be executed off-chain, and at the same time can choose between on-chain data availability or off-chain data availability , that is, choose to save data availability on the Ethereum L1 chain or on Valildiums (off-chain) ).

4. Side chain

Read the major expansion plans of Ethereum in one article

As far as Ethereum is concerned, the side chain is a blockchain compatible with Ethereum .

Sidechains can be independent blockchains, such as BSC (Binance Smart Chain), or more generally, customized blockchains that specifically cater to Ethereum users, such as Polygon’s sidechains . The compatibility of sidechains with Ethereum stems from their support for EVM (Ethereum Virtual Machine).

Therefore, the side chain can be used as the external execution layer of Ethereum L1 , even if the side chain does not directly inherit the security guarantee of Ethereum L1 . But some sidechain projects, such as Polygon’s sidechain, blur this distinction by submitting checkpoints to Ethereum.

The sidechains we can currently use include:

  • Polygon

  • xDai:

  • Ronin  ( NFT game Axie Infinity customized side chain ):

5. Status Channel

Read the major expansion plans of Ethereum in one article

Connext is one of the most well-known state channel projects in the Ethereum ecosystem

State Channels is an off- chain expansion solution supported by multi-signature smart contracts . In the state channel network, encrypted assets such as ETH can be locked in these contracts to create two-way payment channels between users .

In other words, the state channel is like “bookkeeping”, users can make hundreds of transactions off-chain with each other, and then stop the bookkeeping by sending the last transaction to Ethereum L1 . In this way, what was originally a lot of transactions can be simplified through the state channel.

Currently we can use the status channel project :

  • Connext :

6. Plasma

The Plasma chain is an expansion scheme that relies on fraud proofs, similar to Optimistic Rollups. But unlike Optimistic Rollups, Plasma keeps data availability off- chain . Although it is one of the earliest areas of Ethereum L2 research, the implementation of Plasma has not been as attractive as other newer expansion solutions .

When will Ethereum L1 realize sharding?

Read the major expansion plans of Ethereum in one article

Above: Ethereum’s updated roadmap. Graphics: trent.eth

Ethernet Square developer community expects slice (sharding) will be launched in the coming years.

This update will extend the single protocol of Ethereum to 64 new “shard chains”. By distributing the load of the Ethereum network to these shard chains in this way, Ethereum L1 can achieve horizontal expansion, which greatly improves transaction latency and throughput capabilities .

It is worth noting that, as the founder of Ethereum Vitalik Buterin emphasized before,  Sharding and Rollups bring the scalability benefits of each other.” These innovations will allow Ethereum to easily support billions of users .

The future of Ethereum expansion is modular

Until recently, Ethereum has been a monolithic blockchain, relying on itself to provide security, execution, and data availability.

We are now beginning to see, and will see more and more in the future, that Ethereum is becoming a modular blockchain . In other words, we will see that Ethereum increasingly relies on the external execution layer and external data availability layer to advance its basic performance.

From Rollups to sidechains, we have discussed what these early external execution layers look like. It is also worth noting that customized data availability blockchains like Polygon Avail will also play an important role in expanding the future possibilities of modular blockchains.

Posted by:CoinYuppie,Reprinted with attribution to:
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