Ethereum lightning network side chain

1.

There is an essential difference between Ethereum and bitcoin. What is the difference? Bitcoin defines a set of currency system, while Ethereum focuses on building a main chain (which can be understood as a road) to allow a large number of blockchain applications to run on this road

from this point of view, Ethereum's application scenarios are more extensive, which is why we say that Ethereum marks a simple monetary system in the era of blockchain

1.0, and a transformation to other instries and application scenarios in the era of blockchain 2.0

however, there is no perfect thing in the world. Although Ethereum has expanded the application scope of blockchain in all walks of life and improved the speed of transaction processing, it also has some disputes and doubts

first, the solution to the lack of scalability of Ethereum: slicing technology and lightning network

the bottom design of Ethereum, the biggest problem is that Ethereum has only one chain and no side chain, which means that all programs have to run on this chain equally, consuming resources and causing system congestion. Just like last year's very popular Ethereum game "encryption cat", when this game was very popular, it once caused Ethereum network paralysis

to improve the processing capacity, Ethereum proposes two ways: shard and lightning network. Let's introce these two technologies respectively

(1) fragmentation technology

vitalik buterin, founder of Ethereum, believes that the reason why mainstream blockchain networks such as bitcoin process transactions very slowly is that every miner has to process every transaction in the whole network, which is actually very inefficient. The idea of fragmentation technology is: a transaction does not need to be processed by all nodes in the whole network, as long as some nodes (miners) in the network are allowed to process it. Therefore, Ethereum network is divided into many pieces. At the same time, each piece can handle different transactions. In this way, the network performance will be greatly improved

however, the slicing technology is also controversial. As we all know, the important idea of blockchain technology is decentralization. Only when the whole network witnesses (processes) the same transaction can it have the highest authority. The Ethereum slicing technology is similar to the group witness, not all nodes witness together. In this way, it will lose the absolute "decentralization" attribute, and can only achieve the purpose of high performance by sacrificing certain characteristics of decentralization

(2) lightning network

lightning network uses the way of transaction under the chain. What does that mean? It means: when the participants of lightning network transfer money to each other, they do not need to confirm the transaction through the main chain of Ethereum, but create a payment channel between the participants and complete it under the chain

however, lightning network is not separated from the main chain. Before establishing a payment channel, you need to use the assets on the main chain as collateral to generate a balance proof, which indicates that you can transfer the corresponding balance. In the case that both parties of the transaction hold the balance certificate, both parties can make unlimited number of transfers under the chain through the payment channel

only when the off chain transaction is completed and the assets need to be transferred back to the chain, the balance change information of the main chain account will be registered on the Ethereum main chain, and no matter how many transactions occur ring this period, there will be no record on the main chain

another real benefit of lightning network is that it can save the cost of miners for you. At present, when we trade on the main chain of Ethereum, we need to consume gas and pay for miners. Once we move the transaction to the lower chain, we can save this part of the cost

Of course, lightning network is not perfect. When using the lightning network, the assets on the main chain should be used as collateral; And this part of assets as collateral can not be used before the user completes the transaction under the chain. This also determines that lightning trading is only suitable for small transactions

the above is the problem of insufficient scalability of Ethereum, as well as the two main solutions: fragmentation technology and lightning network

Second, there are loopholes in Ethereum's smart contract and the infamous Dao event

Ethereum's smart contract is very powerful, but there are loopholes in any code. The biggest controversy of Ethereum's smart contract lies in the so-called loopholes, that is, security issues. According to relevant research, 34200 (about 3%) of the nearly 1 million smart contracts based on Ethereum contain security vulnerabilities, which will allow hackers to steal eth, freeze assets or delete contracts, such as the infamous Dao incident

(1) what does Dao mean

before introcing the Dao event, let's first introce what Dao is. Dao is the abbreviation of decentralized

autonomous organization, which can be understood as decentralized autonomous organization. From the perspective of Ethereum, Dao is a kind of contract or a combination of contracts on the blockchain, which is used to replace the government's review and complex intermediate proceres, so as to achieve an efficient and decentralized trust system. Therefore, Dao is not a specific organization, that is to say, there can be many Dao, all kinds of Dao

(2) the infamous Dao event

however, when we talk about Dao now, we basically refer to the Dao event, that is, the infamous hacker attack event we just mentioned. As we know, the English word "the" refers to "the Dao event". The Dao event

refers to "the Dao event", because we just said that Dao is not a specific organization, there can be many Dao, all kinds of Dao

in 2016, slock.it, a German company focusing on "smart locks", launched the Dao project on Ethereum in order to realize decentralized physical exchange (such as apartments and ships). Since April 30, 2016, the financing window has been open for 28 days

unexpectedly, this Dao project is very popular. It raised more than US $100 million in just half a month. By the end of the whole financing period, it raised a total of US $150 million. Therefore, it has become the largest crowdfunding project in history. However, it didn't last long. In June, hackers took advantage of the loopholes in the smart contract to successfully transfer more than 3.6 million Ethernet coins and put them into a Dao sub organization, which has the same structure as the Dao. At that time, the price of Ethernet currency fell directly from more than $20 to less than $13

this event shows that there are loopholes in smart contracts, and once the loopholes are exploited by hackers, the consequences will be very serious. This is why many people criticize Ethereum and say that its smart contract is not smart

to solve this problem, many foreign companies begin to provide code audit services in order to solve the vulnerability problem of smart contract. From a technical point of view, some teams are currently testing smart contracts. Most of these teams are led by professors from Harvard, Stanford and Yale, and some of them have obtained investment from leading institutions

in addition to the problems of insufficient expansibility and loopholes in smart contracts, the controversy over Ethereum lies in the POS consensus mechanism it pursues, that is, the proof of equity mechanism. Under the proof of equity mechanism, if anyone holds more money and holds it for a longer time, he will get more "rights" (interests) and have the opportunity to get bookkeeping power, Bookkeeping can also be rewarded. In this way, it is easy to create the oligarchic advantage of "the stronger the stronger"

Another problem is the chaos of ICO. ICO is a common way to raise funds for blockchain projects, which we can understand as pre-sale. The outbreak of ICO projects on Ethereum has caused illegal activities such as fund allocation and money fraud under the banner of ICO, which has caused security risks to social and financial stability

2. The most popular is bitcoin. Bitcoin has been popular for a long time. It can be cashed and converted into the currency of most countries. Users can use bitcoin to buy some virtual items, such as clothes, hats and equipment in online games. As long as someone accepts it, they can also use bitcoin to buy real-life items
in China, the other one I know is the network mutual aid blockchain, which represents the platform of concentric mutual aid. Blockchain technology is used to solve the shortcomings of the network mutual aid instry. At present, blockchain is also very popular in the network mutual aid instry.

3. Blockchain wallet is the basic token management platform, and even the user's identity management tool. For example, when users want to play the encrypted cat game, they can open their wallet, enter DAPP and use it after selection. They can also download DAPP application through their wallet and use it locally
with the increase of token types and the improvement of the whole blockchain ecosystem, when wallet is no longer simply a tool for storing tokens, sending tokens and participating in crowd funding, it will graally shift from dealing with exchanges and crowd funding projects to using tokens for its own purposes< As the entry value of payment, wallet is the same as the existing mobile payment, and payment can be completed by scanning the code to confirm. With the development of lightning network, lightning network and other off chain payment technologies, or fragmentation, sub chain and other technologies, once digital token payment becomes one of the mainstream payment methods in the future, Cobo and other wallets will have a lot of imagination as the entrance

2. The value of wallets as an asset management platform

now there are opportunities for user wallets to rise. First, there are tens of millions of users, all of them are valuable users. Second, with the development of the whole ecology, derivatives also began to develop, and there was a demand. For example, when users have some tokens, some are long-term value investors. For example, some users will hold bitcoin, Ethereum or EOS for a long time. However, if they only store, they will not make the best use of their assets, which is a waste. At present, there are more and more public chains, more and more protocols and applications, and more and more tokens. Centralized exchanges, decentralized exchanges, and quantitative trading are developing. There are many opportunities for financial management and asset management
3. Wallet is the entry value of transaction

e to the precipitation of many users' digital assets, when users need to trade, the more troublesome point is that they need to transfer to the exchange. If it is congested, it will take a long time, which is easy to delay. On the exchange, if the trading depth is not enough, or the price is not appropriate, it is often difficult to close. If it is a larger order of trading demands, instant delivery or purchase will affect the price fluctuation. If the wallet is combined with some decentralized or centralized exchanges, such as users entering their own ideal price, the matching transaction can be realized as soon as possible. For users, fast transactions can be realized in the wallet, which is also a good demand scenario
4. The value of wallet as DAPP market entry

for wallet, DAPP market entry is absolutely the most imaginative prospect. With the maturity of public chain, especially the graal improvement of EOS, Ethereum and other blockchain infrastructure, some DAPP applications of game, financial, social and pan entertainment are graally developed<

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5.

When driving on high speed, we all know that it is very convenient to install an etc, because it can pass through the toll intersection quickly without parking. This also saves a lot of time for the majority of car owners, because sometimes if we stop and then go to pay, it may delay some valuable time{ RRRRR}

in fact, sometimes I think this kind of equipment is very convenient, but the conditions in various aspects may not be very mature now, so sometimes it will lead to a wrong dection. In life, our car owners may feel very troublesome. We should protect our own interests. Even if your money is dected, you should respond in time. Or upgrade the system