Ethereum developers have long understood that network expansion is a topic worth discussing and investing. But this problem was not noticed by the development community until the second half of 2017, when there was a decentralized application called virtual cats that took up too much traffic, which slowed down the entire network. In addition to network latency, the fuel costs required to run smart contracts on the Ethereum blockchain are exploding because users are competing for their transactions to take effect. Although this story is over-reported, the situation of the virtual cat reveals that the current Ethereum may not be ready to provide the required traffic for the successful dApp. Slower speeds and expensive usage costs allow users to leave the platform and applications. DApp developers are working hard to release the first widely used app, so developers must continue to overcome the blockchain expansion problem. One of theories of blockchain technology is that the network can support two of the following: security, decentralization, and scalability. This “three-dimensional paradox†has become a challenge for Ethereum developers because they want to maintain the core features of the blockchain (decentralization and security) for wider application and implementation. Some expansion solutions can seriously affect security or decentralization: 1. The use of alternative coins is a theoretical solution to the problem of capacity expansion. This solution is to put the transfer calculation under the chain, and accept the model of multiple alternative coins at the same time, these will run on a separate blockchain. The reduced traffic per blockchain allows the entire blockchain to be expanded. However, as each blockchain has fewer nodes, each blockchain is more vulnerable to attack and fraudulent users. Therefore, the use of alternative coins maintains decentralization and increases scalability, but also greatly affects security. 2. Increasing block size is another theoretical solution to the problem of capacity expansion. If the Ethereum community votes to increase the size of each block, all nodes can still run various operations, but at the same time, more transfers may occur. However, with larger block sizes, each transfer requires more energy, and fewer and fewer nodes can afford this part of the energy. The result is that the future network will be dominated by supercomputers that have a large amount of processing power to verify each block. Therefore, increasing the block size guarantees security and capacity expansion, but significantly reduces the decentralization of the network. The initial problem with blockchain development was security and decentralization. Therefore, the most important impediment to capacity expansion is that each node needs to process each ratio transaction. Because of absolute security and decentralization, the system does not add much value to capacity expansion. So the question is, how can our Ethereum engineers expand without compromising safety and decentralization. There are now four protocols under development that can address the issue of capacity expansion. Fragments, Plasma and Thunder are all designed to help Ethereum expand. The fourth protocol, Casper, is more extensive in content, but it also has the effect of expansion. This expansion scheme of fragmentation still places the transaction on the original blockchain, so it is called the "chain on" scheme. Fragmentation solves the linearity of transactions on the Ethereum network because each node needs to process transactions. Sharding allows nodes to run simultaneously, thus increasing the transactions per second that the overall blockchain can handle. With fragmentation, the Ethereum network can be divided into many groups of nodes. Each group is a shard, and each shard handles transactions within the group. This allows the shards to process different transactions simultaneously. Inside each shard, some nodes create "collaTIon" on a regular basis, or a series of information about shards. Each collaTIon will include the following information: 1. Where does each fragment collaTIon come from? 2. Information about the status of the fragment before the transaction is completed 3. Information on the status of the slice after the transaction is completed 4. Digital signature verification from 2/3 collator in collaTIon In the network, the collation in each shard is stored in a single block and added to the Ethereum blockchain. Therefore, the fragmentation technique allows these group nodes to process and verify transactions, but only the information in the collation is added to the blockchain. Assuming there are 10 tiles, each segment processing 5 transactions, then the next block can contain 50 blocks of transaction information on the blockchain, rather than the nodes need to process all transactions in order. But the sharding technique has two problems. First, each slice must have enough nodes to secure the network. If there is too few nodes in a region, 2/3 of the collator may be compromised and fraud begins. Secondly, it is much harder to deal with the transaction between the two regions than for one region (if it is a region, there will be no problem, because it is the entire blockchain). The current method requires lengthy receipts and proofs. Plasma is another solution for trading transactions under the “chainâ€, which means that the transaction is not carried out on the Ethereum main network. Plasma allows many blockchains (subchains) to be separated from the original blockchain (root chain). Therefore, each sub-chain can handle and maintain its own transfer records, which of course is based on the underlying security of the root chain. With Plasma, the root chain is the driving force for all sub-chains to be calculated. But the root chain only needs to be calculated when there is a dispute in the sub-chain. This approach allows all sub-chains to allocate all of the transfer information on the blockchain, thereby optimizing speed and efficiency. If the nodes on the sub-chain are willing, they can submit the transfer information and output their transfer record to the root chain. This method has a very big benefit. Each Plasma chain has its own standard, which means that different sub-chains can support transactions with different needs (for example, private chains), and all transactions are in the same, secure ecosystem. The lightning network is another type of chain expansion solution that allows nodes to maintain transfer records without having to verify each transaction with the root chain. A "status channel" can be opened between the two nodes, which is a bidirectional channel between users. The transaction information will be carried out between the two nodes, and will be signed by the parties to ensure that it cannot be modified. The Thunder Network is designed for recurring payments, that is, knowing that you will pay a company $10 a week for services, or that you will spend it somewhere. Logging and verifying transactions between these two nodes, rather than through the entire block, the root chain can free up a lot of traffic. At any time, participants in the status channel can choose to close the transaction and the results of all transactions will be recorded on the root and included in the next block. This means that after you have used the $10 a week service for 1 year, the user will have a block to verify the $520 deal, not a $52 to $10 deal. There is a problem with the lightning network solution and there is also a benefit. The problem is that nodes can only communicate with their "neighbors", that is, if node A and node B open the state channel and the state channels of nodes B and C are open, A cannot directly send funds to C. However, this way through the channel to transfer money, you can ensure that funds will not be stolen and locked. Node A can send funds to C through B as an intermediary, so Node B cannot steal funds. The main benefit of the lightning network is that it can significantly reduce the fuel cost of each transaction. Caper is the proof of equity agreement that is going to be transferred by Ethereum's current workload. Through the workload proof algorithm, miners must now improve energy use to solve encryption problems and dig out blocks. If the problem is solved, then they can get rewards, but this process requires a lot of energy (and more and more is needed now). This is very costly and is also very detrimental to energy. It currently costs $12 billion a year to maintain proof of workload. In the proof of equity, the verification node replaces the miner, and they verify the block on the blockchain instead of dig out the block. This will not increase the energy consumption on a certain block, and the verification node will perform equity mortgage in a certain blockchain. The block with the most equity will be verified and added to the blockchain. Finally, the verification node will be added to the chain by placing funds on the contract to place a block until the next block is added. If the last block is correct, they will be rewarded. If they maliciously want to verify the error or block with bribe information, their funds will be lost. Conceptually, such a transition can protect the blockchain from malicious attacks. Through the workload proof algorithm, a failed blockchain attack consumes the attacker's time and energy. However, in the equity proof algorithm, the failed attack will directly cause them to lose money, because they will immediately lose the equity funds on the wrong block. The final implementation of Casper will be divided into two iterations of the protocol: Casper FFG and Casper CBC. Casper FFG will be the first iterative version of Casper, probably released when Ethereum next hard fork. In Casper FFG, the block is still dug up by the proof of workload. However, after every 50 blocks, the verification node will intervene in the mechanism for testing the equity certificate. This checkpoint will use a proof of equity agreement to assess the finality. This final meaning means that the operation has been completed and cannot be tampered with. In the FFG, the verification node will use the funds as equity to complete the verification of the first 50 blocks in the chain. Casper CBC will be the second iteration of Casper. This agreement will be formally verified and proven to satisfy all given attributes. In the CBC protocol, the PoS protocol will only be partially set and then further fine-tuned to meet its attributes. In the end, it is completely different from the beginning, and this agreement is gradually advanced and improved. This is achieved by implementing a protocol called "ideal opponents" that can raise questions, errors, and problems that may arise in the future. The final Casper agreement may be deployed by learning FFG and CBC. This agreement will be broader than simple expansion, including energy and security improvements. However, each node consumes less energy, which means the network will increase the difficulty of existing expansion. Although Casper is not specifically designed for expansion, it will certainly have a positive impact on the network to take on more traffic. These four programs are not mutually exclusive, and they can and may be implemented to some extent to help Ethereum gradually expand. The expansion problem is the biggest concern of Ethereum developers in 2018. As more and more dApps are being developed and launched, we will see the expansion of the expansion solution, which will enable Ethereum to realize its full potential.
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