Ethereum Sidechains thread.
A Sidechain is an independent blockchain, designed to be compatible with the Ethereum blockchain.
They can use a different Consensus mechanism and they have Pros and Cons.
↓
A Sidechain is an independent blockchain, designed to be compatible with the Ethereum blockchain.
They can use a different Consensus mechanism and they have Pros and Cons.
↓
Table of Contents
Definition
Sidechain responsibilities
How do sidechains work?
Security
Examples
Matic
Skale
POA Network
Gnosis
Consensus Mechanism
Proof-of-Authority
Proof-of-Stake
Sidechains Pros
Sidechains Cons
Interoperability
↓
Definition
Sidechain responsibilities
How do sidechains work?
Security
Examples
Matic
Skale
POA Network
Gnosis
Consensus Mechanism
Proof-of-Authority
Proof-of-Stake
Sidechains Pros
Sidechains Cons
Interoperability
↓
Definition
A sidechain is another blockchain that runs in parallel to Ethereum Mainnet.
It operates independently from Ethereum.
Its goal is to improve the Ethereum blockchain but be compatible with that.
A sidechain is another blockchain that runs in parallel to Ethereum Mainnet.
It operates independently from Ethereum.
Its goal is to improve the Ethereum blockchain but be compatible with that.
Sidechain responsibilities
Sidechains' responsibilities:
- confirm & process transactions.
- writing transactions to blocks.
- network consensus.
- security.
Sidechains' responsibilities:
- confirm & process transactions.
- writing transactions to blocks.
- network consensus.
- security.
How do sidechains work?
Sidechains are distributed ledgers.
They operate in parallel and independently to the Ethereum Mainnet.
For fast transactions, they can use:
- alternate validator selection
- other consensus mechanisms
Sidechains are distributed ledgers.
They operate in parallel and independently to the Ethereum Mainnet.
For fast transactions, they can use:
- alternate validator selection
- other consensus mechanisms
Security
Sidechains are responsible for their own security.
They can use different validators methods.
This is an opportunity for:
- cheaper transactions.
- faster transactions.
- increased throughput.
⚠️Smaller validator sets are more susceptible to collusion-based attacks!
Sidechains are responsible for their own security.
They can use different validators methods.
This is an opportunity for:
- cheaper transactions.
- faster transactions.
- increased throughput.
⚠️Smaller validator sets are more susceptible to collusion-based attacks!
Examples:
These are just some examples of Ethereum Sidechains
- Matic (Polygon)
- Skale
- POA Network
- Gnosis Chain
These are just some examples of Ethereum Sidechains
- Matic (Polygon)
- Skale
- POA Network
- Gnosis Chain
Matic (Polygon) @0xPolygon
"Polygon is a decentralized Ethereum scaling platform that enables developers to build scalable user-friendly dApps with low transaction fees without ever sacrificing on security."
polygon.technology
"Polygon is a decentralized Ethereum scaling platform that enables developers to build scalable user-friendly dApps with low transaction fees without ever sacrificing on security."
polygon.technology
Skale @SkaleNetwork
"SKALE is the only containerized network capable of running an unlimited number of secure, decentralized, high-performance blockchains that are native to Ethereum."
skale.network
"SKALE is the only containerized network capable of running an unlimited number of secure, decentralized, high-performance blockchains that are native to Ethereum."
skale.network
POA Network @poanetwork
"POA Network is the first Ethereum-based public network with Proof of Authority, reached by independent validators. They are building a public network for smart contracts that combines speed, security, and cost-efficiency."
poa.network
"POA Network is the first Ethereum-based public network with Proof of Authority, reached by independent validators. They are building a public network for smart contracts that combines speed, security, and cost-efficiency."
poa.network
Gnosis @gnosischain @gnosisdao
"Gnosis builds new market mechanisms for decentralized finance. Our three interoperable product lines allow you to securely create, trade, and hold digital assets on Ethereum."
gnosis.io
"Gnosis builds new market mechanisms for decentralized finance. Our three interoperable product lines allow you to securely create, trade, and hold digital assets on Ethereum."
gnosis.io
Consensus mechanism
Sidechain can use different consensus mechanisms.
Examples of them are:
- Proof-of-Authority
- Proof-of-Stake
Sidechain can use different consensus mechanisms.
Examples of them are:
- Proof-of-Authority
- Proof-of-Stake
Proof of Authority (PoA)
Validators are pre-selected for this protocol.
e.g: POA Network.
POA uses an Authority Round consensus where selected validators, take turns for:
- signing transactions
- sealing blocks.
✅more scalability
❌less decentralization
Validators are pre-selected for this protocol.
e.g: POA Network.
POA uses an Authority Round consensus where selected validators, take turns for:
- signing transactions
- sealing blocks.
✅more scalability
❌less decentralization
Proof of Stake (PoS)
- A set of validators is selected based on the staking amount.
- Nodes with more stake: more chance to be selected.
- Users can add staking amounts to a node, increasing the chance to be selected
e.g: Gnosis
✅ honest validation promoted by incentives.
- A set of validators is selected based on the staking amount.
- Nodes with more stake: more chance to be selected.
- Users can add staking amounts to a node, increasing the chance to be selected
e.g: Gnosis
✅ honest validation promoted by incentives.
Sidechains Pros
Some Sidechains Pros are:
✅Base blockchain improvement
✅Ethereum Virtual Machine (EVM) compatibility.
✅The support general computation.
✅They use an established technology.
Some Sidechains Pros are:
✅Base blockchain improvement
✅Ethereum Virtual Machine (EVM) compatibility.
✅The support general computation.
✅They use an established technology.
Sidechains Cons
Some Sidechains Cons:
❌They can be expensive to create
❌Easier to attack
❌Less decentralization
❌The use another consensus Mechanism
Some Sidechains Cons:
❌They can be expensive to create
❌Easier to attack
❌Less decentralization
❌The use another consensus Mechanism
Interoperability
Sidechains are used for better transactions.
The results should be cross-chain compatible.
Two-way peg:
Chains are independent, resources are typically locked on one chain and created on another.
When they are back, they are destroyed and unlocked.
Sidechains are used for better transactions.
The results should be cross-chain compatible.
Two-way peg:
Chains are independent, resources are typically locked on one chain and created on another.
When they are back, they are destroyed and unlocked.
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