What are some of the most recent scaling proposals for Blockchain?
Ie. various blockchain scalability topics including the blocksize debate, SegWit, GHOST, Lightning, multichains, sidechains, blockDAGs.
Scaling proposals can be put into 2 categories: off-chain and on-chain.
Off-chain proposals generally involve netting small transactions between 2 or more parties outside the blockchain. After a certain time the involved parties will settle the net amount on the blockchain, if they agree with each other.
On-chain proposals involve a more efficient way to process and store transaction. For example, a bigger block can fit more transactions. With segwit, transactions take less space, as a result for the same block size we can fit more transactions. On ethereum, there is some ongoing research work about sharding the verifications, i.e each block will only have to be verified by a subset of the network, instead of the whole network.
Out of all those proposals, bigger blocks, segwit and payment channels are the most production ready. Verification sharding is still being researched and is not production ready yet.
Notes I have from a Berkeley Deep Dive:
Paiwise Channels - Between 2 players Funding Transaction: Initializes channel w certain amount of bitcoin from each party
Hashed Timelock Contract Provide preimage of contract hash to redeem payment else receiver can withdraw funds. Timelock created through changing sequence numbers.
Example: Open fund, close fund are only blocks to add on chain, anchors the transaction into the chain To redeem deposit, network must be closed. Also there is a temporary key swap for each transaction, not private key. Unique key for each transaction, created just for commitment transaction.
Error Handling: Payment Malfunction If payment not redeemed, sender gets their money back after time expires TX’s exist on BC layer, no actual contracts made Cost is transaction fees and time spent. If LN fails, Blockchain does not fails as well but deposits may be lost
Peg communicates between sidechain & BC and is the mechanism for exchange rate between assets. It is possible for assets can be imported from and to other chains. Allowed to use in side chain and transfer back and forth between chains
They require mining, reward could be TX fee or coins, many possible implementations, Raiden/Lighting are just payment channels, not sidechains
After successful transaction, the coin signifying transfer between chains will be destroyed. The actual coin is not actually transferred, but locked on mainchain while equiv coins created on sidechain. To go back to original coin, must place back into secondary wallet to get primary unlocked.
Major usage of the:
SPV proof : A mathematical proof providing a way where you can determine that a particular transaction was in a block in the block chain without requiring the entire block chain to be downloaded.