Off Chain Computation
Since in 2017 there's lots of hype in blockchain industry. Frankly speaking Ethereum and Bitcoin do have scaling problems: they do bring decentralization and transparent but transactions are really slow and expensive.
Many projects seek to solve this problem, claiming that they will have millions of TPS(transactions per second). But in the early 2019 we still can not see any those projects come real.
This is a fundamental problem of blockchain; it can't scale( if permissionless blockchain should have decentralization and security,I will explain it here). So more people are thinking about adding another layer on permissionless blockchain, that's what we call layer 2 solutions.
Layer 2 solutions are not a single project, it contains several type of solutions: some to scale payment, some are used for scaling smart contract, and some to do computation off chain. But one feature they are the same: move most of the work off chain and use permissionless blockchain as anchors to ensure security.
Many people are working on those projects, most of them do not have any ICO, they just believe layered design is the future of blockchain. So do I.
Blockchain(here "blockchain" refers to permissionless blockchain or public blockchain) technology is facing a trilemma, i.e. from decentralization, security and scalability, Only two of the three features could be obtained in a single blockchain. At the heart of the scaling problem is a tradeoff between "large user-base " and "large set of validators".
Public blockchains need all the validators reach consensus, to ensure decentralization and security, which leads to the problem: the throughput of the whole blockchain is equal to a single validator. Fundamentally, blockchains just don’t scale.
Now there are three scalability technologies are on their way:
Each validator processes more transactions and improve the throughput of the blockchain, by introducing optimized blockchain protocols.（i.e DAG, Hashgraph, Avalance, etc).
By using sharding technology, each shard process it's own transaction.
Layer 2 solutions, which will move most of the work off chian. These will be the main topic of this repo.
For the first solutions, by optimizing the blockchain protocols, then only computer with better processing power can act as validator. For those home - use computers, they even can't download transaction if the throughput reach 5000 transactions per second. And storage comes to be a problem afterward.
As for Sharding, it's not mature yet. There are different issues concerning 4 level of sharding: from the computation level, network level, storage level and consensus level. These issues are also cross shard problem like train and hotel problem, those problems are not solved yet.
Off chain scaling solutions are mature technologies for scaling blockchain.It was first introduced by Lighting Network in 2016. From our perspective, public blockchain is so far the most efficient way to reach global consensus, but it is also the slowest database as well. Thus we should let blockchain do what they should do, i.e. ensure security and decentralization. Other features like scalability, privacy and so on could be done through off chain scaling solutions, to fit the demand of different industries and applications.
Here are two main considerations behind off chain scaling solutions:
1. Not every thing needs to reach a global consensus.
2. Public blockchain should just do what they should, to guarantee public verifibility.
Nowadays, there are several branches of off chain scaling solutions:
We will introduce them one by one in the future.If you have anything to add here, know how to contribute
In this repo, we use “Layer 2” to refer off chain scaling solutions. The public blockchain which guarantees the security and decentralization of the network is called "Layer 1", these names are already reach consensus inside the industry.
We boldly predict that in the future there will be variety of Layer 2 developers, they will come up with their Layer 2 solutions according to real world demand and their understanding of the technology.
This repo is designed for the future of Layer 2.
All the layer 2 projects is here, click the project and you will jump to the section of this project,all you need to know about this project will be there.
Intro: Connext is free, open source p2p micropayment infrastructure. Connext hubs are mainnet-ready and being used in production.
Intro: Counterfactual is a object-oriented generalized state channel framework lead by L4.
Counterfactual:Generalized State Channels on Ethereum :Introduction and announcement of the project Counterfactual.
Generalized State Channels on Ethereum: A state channel concept writen by Liam Horne and Jeff Coleman before the project begins.Here talks about their objects and design purpose.
State Channel Applications :A discussion about state channel applications and what Counterfactual do: splits the state channel resolution logic from the application logic.
Channelising MixEth with the Counterfactual framework :Writen by Chris Buckland,researcher from PISA. About a jounary of writing an application(MixEth Protocol) using Counterfactual.
State Channels for Dummies: Part 5(Generalized State Channels / Counterfactual) :About mechanism of generalized state channels writen by Eric Olszewski.
General State Channels:Counterfactual Instantiation Code Walkthrough
The Bitcoin Lightning Network :WP of Lighting Network
Lightning Loop:Lightning Loop is a non-custodial service offered by Lightning Labs to bridge on-chain and off-chain Bitcoin using submarine swaps. Which means you can move your BTC out of the channel while still keep the channel open.Github
Static Channel Backups(SCB):About funds recovery.
Lightning Network enables Unicast Transactions in Bitcoin. Lightning is Bitcoin’s TCP/IP stack.：About working principle of Lightning Network.
The future of lightning - Elizabeth Stark - Honeybadger 2018 :Text draft of a presentation by Elizabeth Stark. About Lighting Network's history and overview.
Arbitration Outsourcing for State Channels by Patrick McCorry (Devcon4):Introduction of PISA by Patrick McCorry
Intro: The Raiden Network is an off-chain scaling solution for performing ERC20-compliant token transfers on the Ethereum blockchain. It is Ethereum's version of Bitcoin's Lightning Network, enabling near-instant, low-fee, scalable, and privacy-preserving payments.
µRaiden(micro-Raiden): unidirectional micropayment channels.
µRaiden: Unidirectional Off-Chain Payment Framework - Loredana Cirstea :introduction of µRaiden,how it works,and a demo of µRaiden.
Trinity is a universal off-chain scaling solution, which aims to achieve real-time payments with low transaction fees, scalability and privacy protection for mainchain assets. Trinity now have the trinity-neo (based on Neo) and trinity-eth(based on Ethereum)
intro: Liquidity Network is a research-driven team developing NOCUST, a non-custodfial side-chain (or commit-chain) with strong security assumptions. NOCUST enables scalable transaction throughput and allows to build layer 2 decentralized exchange.
NOCUST Paper:NOCUST is a specification for secure N-party payment hubs introduced by Liquidity Network
intro: The Livepeer project is building a platform for video transcoding and live video streaming for the decentralized web. It's Beta version is ready.
Medium:with too many articles so if you want to find more articles you could check here.
Token Summit I - Show and Tell - Livepeer with Doug Petkanics:Introduction of Livepeer in 7 minutes by co-founder of Livepeer.
Web3 Goes Live -- Livestreaming Video on the Peer-to-Peer Internet(Devcon 3):Eric(Co-foudner of Livepeer) gives a 30 minute technical presentation of how to add a live media layer to the web3 stack at Ethereum's Devcon3.(30 minutes)
NYC Ethereum Cryptocurrency & Consumer Media September 7th 2017:Doug and Eric give a 10 minute presentation at the NYC Ethereum Meetup focused on Media and Cryptocurrency. The whole video is 90 minutes and contains other projects.
Intro: Loom Network is building a fundamental infrastructure platform to help Ethereum scale.It allows developers to run large-scale social apps and games, and is the first Ethereum scaling solution to be live in production.
Matic brings massive scale to Ethereum using an adapted version of Plasma and PoS based side chains.
Dagger Get realtime updates from Ethereum Blockchain using Dagger
Zapier Integration Zapier is a web automation app and it gives you the power to integrate Dagger for Ethereum with hundreds of other apps to automate your work.
Dedicated to the creation of an open plasma implementation for the greater Ethereum community.
Intro: SKALE empowers Ethereum DApps to run high-speed, low-cost smart contracts in Layer 2.
Intro:From Parsec Labs to LeapDAO, now this team are working on building Plasma on Ethereum.
Intro:A Privacy-Preserving Computation Network
intro: It's the Wallet Engine For The Web3 World Focusing on Usability, Scalability and Privacy
AlphaWallet (Stormbird PTE. LTD.) Joins The Enterprise Ethereum Alliance: AlphaWallet joined EEA to help improving the technology and support the adoption of Ethereum in the enterprise.
AlphaWallet released the report of world’s first blockchain tickets experiment for 2018 World Cup:This is the world’s first global top sporting event ticket to use blockchain technology and one of the few blockchain based projects that is handling a real world legitimate use case.
Intro:Used to be Oraclized, now Provable.Slogon:The Provable blockchain oracle for modern DApps
Intro:TEEX is a secure distributed computing platform which provides a Layer-2 solution based on blockchain. It builds a complete incentive model of computing resource sharing, which provides a decentralized, usable and flexible computing market for users, workers and service providers.
Intro： configures decentralized apps to work seamlessly with both public and private clouds. Use your existing development resources to deploy superior apps in minutes.
Intro: Finality Labs is a community of researchers, devs, modders, hackers, and gamers uniting to experiment with and create new applications of cryptographic systems.
Applied State Channels and Plasma (WIP) :This paper will outline Finality Labs‘ protocols for complex state systems that address common blockchain applications, a state-channels and Plasma approach to payments, exchanges, and games.
L4 Venture is building Web3(a decentralized web that removes middlemen and incentivizes users to contribute)
Making Sense of Ethereum’s Layer 2 Scaling Solutions: State Channels, Plasma, and Truebit：:Introduction of layer 2 solutions on Ethereum, after read this article writen by Josh Stark,you will really make sense of Ethereum's Layer 2 scaling solutions:State channels,Plasma, and Truebit.
The Importance of Layer 2:The scalability problem of blockchain and come up with Layer 2 solutions.
State Channel:About introduction of state channel by Jeff Coleman in 2015.
State Channel 101:Simple explaination of state channels.
State Channel Wiki :By Jeff Coleman,explaination of state channel and you can find more in the menu.
Counterfactual Terminology :Why called state channel counterfactual? Here's answer. It's the logic behind state channel.
Why do we need state channels?:An article in learnchannels. Problem of blockchain and why state channel matters.
Counterfactual: Generalized State Channel :White paper of Counterfactual,but I highly recommanded this paper, for it explained the concept and philosophy of state channel very well. Pros and cons are also well analysed in this paper.
State Channels Q&A:a brief overview of what State Channels are, the value they provide, and who is working on them in the space.
the state of state channels:2018 edition: General analysis of state channel at the end of 2018, we can see channels have gone such a long way.
State Channels For Dummies: Part 1：Payment Channels
State Channels for Dummies: Part 3：Multi-Hop Transactions
State Channel for Dummies: Part 4：Ledger Channels and Virtual Channels
State Channels for Dummies: Part 5：Counterfactual
State Channel Researchers Call #1:A telephone conference organized by Celer Network,in which several teams which are working on state channel communicating with each other. In this eposide, The first few calls will be about intro to every participating project and free-style Q&A.
State Channel Researchers Call #2:Counterfactual quick intro and discussion about data exchange fabric and connectivity oracle
State Channel Researchers Call #3:Battleship and PISA intro by Patrick McCorry;Connext intro by Arjun Bhuptani;
1.the state monitoring solutions: PISA and Celer State Guardian Network;
2.Discussion about Virtual Channel constructs of different projects;
3.Discussion about offline recipient problem;
4.Discussion of applicable use cases of state channel;
5.Discussion about operational challenges and experience of state channels.
State Channel Researchers Call #4:Lucian Boca presenting “Threshold Signature: Improving the security of layer-2 protocols”;Discussion & QA around that
State Channel Researchers Call #5:Some general discussion.
DEVCON1: Raiden: Scaling Out With Offchain State Networks - Heiko Hees :A presentation on Devcon 1(2015),and at that time the category of Raiden is called"Ethereum Sub-Protocol" rather than state channel.
State Channels - Ethereum is Open for Business: Ameen Soleimani (Now he's CEO & Co-founder of Spankchain) presents State Channels, an intro to state channels in depth.
Building a state channel application by Tom Close (Devcon4) :A rock,paper scissors game using state channel and a demo of this game by Tome Close founder of Magmo.And he has some consideration about this experience.(A hard thing about state channel is state)
FunFair Technologies' Fate Channels: Lessons learned Implementing State Channels (Devcon4):Just like the title suggested.
General State Channels - Counterfactual Instantiation Code Walkthrough :It'a tutorial and code overview of Counterfactual.Nathan leads a walkthrough of his counterfactual instantiation PoC code while James and Ameen follow along and ask questions.
The future of lightning - Elizabeth Stark - Honeybadger 2018 :Text draft of a presentation by Elizabeth Stark. About Lighting Network's history and overview.
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Plasma Overview and Transaction Data Availability(Devcon3) :Introduction of Plasma by Joseph Poon (Lighting Network)
The State of Plasma by David Knott & Kelvin Fitcher (Devcon4):Very enthusiastic presentation of Plasma and introduction of Plasma MVP,Cash,XT and so on by David Knott & Kelvin Fitcher.
Practical Plasma: Gaming by Matthew Campbell (Devcon4) :Plasma how to scale games on blockchain.
Smart Contracts on Plasma - Christian Reitwiessner(Devcon3) :About building smart contracts on Plasma.
Plasma Blockchain Scalability Framework — An Off-chain Scaling Solution for Ethereum Blockchain:Plasma's principle and different Plasma prototypes and implementations.
Ethereum Plasma – Ethereum’s New Scaling Strategy and Design Space:Joseph Poon, who co-authored the Lightning Network paper, further expanded on and refined the concept with Plasma on Ethereum, resulting in the conditioning of an entire new design space with its own slightly different dynamic.
Plasma Cash Simple Spec:Overview of Plasma, how it solve some problems and some future researches to be done.
PoS Plasma Cash with Sharded Validation:Discussion about Plasma Cash with Sharded validation on Ethresearch.
What is Plasma? Plasma Cash?:Introduction of Plasma Cash.
Plasma Cash: Towards improved Plasma constructions by Georgios Konstantopoulos (Devcon4) :Introduction of Plasma Cash by Georgios Konstantopoulos from Loom Network
Plasma implementers call #1:A telephone conference organized by Ethereum Foundation,in which several teams which are working on Plasma. In this eposide, they discussed the purpose of the group, logistics, introductions, technical details, and more!
Plasma implementers call #2:In this eposide,they went over a number of common Plasma questions.
Plasma implementers call #3:In this eposide,they welcomed the Taiwan team--a group of talented engineers who came together to implement the Plasma MVP. also discussed Cosmos' challenges when exploring Plasma, a number of David's designs, and more fun stuff.
Plasma implementers call #4:In this eposide,they discussed some constructions which can be used to scale Cryptokitties! And of course update Plasma progress and have some fun technical discussions--including a new Plasma implementation from voltairelabs.
Plasma implementers call #5:In this eposide,they discussed Plasma Cash and potential designs and research topics which are worth exploring. :)
Plasma implementers call #6:In this eposide,they discussed designs for Plasma Cash with PoS and sharded validation, coin splits, exits which allow for invalid state transitions, a cryptoeconomics course, and more!
Plasma implementers call #7:In this eposide,they discussed designs which involve sparse merkle trees, bloom filters, and some more splitting! and welcomed the Blockchain @ Berkeley crew who are working on a great Plasma Cash implementation! Yay!
Plasma implementers call #8:In this eposide,they discussed a whole bunch of topics, from account abstraction to Plasma XT which uses cryptoeconomic aggregate signatures (CAS) for checkpointing! Tons of fun!
Plasma implementers call #9:In this eposide,they got to chat about simple splits in Plasma Cash, called Plasma Debit--a critical part of the Plasma Cash spec! Thanks Dan! Plus Vitalik explains instant withdrawals and Plasma with general state transitions :)
Plasma implementers call #10:In this eposide,they got to welcome Loom and Kyber to the call! Plus discussed an update to the Plasma MVP implementation which Kelvin is working on--a research version is pretty much complete! also cover Plasma Cash & debit atomic swaps, as well as Double-batched Merkle log accumulators!
Plasma implementers call #11:In this eposide,they celebrated Loom's release of their Plasma Cash implementation, discuss state channels which are opened on and off of Plasma chains, Plasma Debit with Dan, and wrap it up with some experimental zkSNARKs talk! Amazing times!
Plasma implementers call #12:In this eposide,they discussed a wide variety of topics! We start out discussing Plasma educational materials, then move on to BLS signatures, smart contracts in Plasma, light clients, and finally we get SNARKy!
Plasma implementers call #13:In this eposide,they started with discussions around nitty gritty Plasma Debit liquidity markets. Then talked about Plasma working groups to get the Plasma research done in person, plus hosting a LIVE Plasma call in devcon!chatted about Plasma XT & then Gnosis gives an awesome presentation on their batch auction Plasma construction. Fun!
Plasma implementers call #14:In this eposide,they started out discussing using collateral to reduce user validation load in Plasma Cash. This gets us into triple spends & eventually we talk about the importance and difficulty of analyzing the value of in-flight transactions. Then mentioned some core cryptoeconomic principles around past provability & future accountability.
Plasma implementers call #15:In this eposide,they dived deep into atomic swaps in both Plasma Debit and Plasma Cash. And discussed different implementation details and greifing opportunities. Next some fun discussions around watch towers!
Plasma implementers call #16:In this eposide,they started out by discussing Plasma Cashflow which enables fungible assets on Plasma Cash! then talked about Plasma Leap, the first attempt at a general EVM Plasma!
Plasma implementers call #17:Today Vitalik reviewed his solution to the tx history proof size growth in Plasma Cash! It uses RSA accumulators & is super stylish. We are nearly there... Then they discussed Plasma Leap (even more fun!)
The Plasma Implementers Call: it's a biweekly call which discusses the cutting edge of Plasma research. This is a great group of 9 people: Joseph Poon, Karl Floersch, Kelvin Fichter, Dan Robinson, David Knott, Xuanji Li, George Konstantopoulos, Alex Vlasov, & Vitalik!
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The largest value to create in the Blockchain market is in playing the role that Microsoft did in the Personal Computer Revolution.
Alacris :Building the Layer 2 operation system.
Zero-knowledge is not layer 2 solutions but it still bring scalibility to blockchain.