In recent years, attention towards layer two (L2) scaling solutions for Bitcoin has persisted, though bitcoin capacity in the Lightning Network has seen a decline. In recent years, other varieties of L2 solutions have emerged, capturing the attention of the crypto community. On March 19, 2024, the lead developer at Blockchair unveiled L2 Watch, an […]
Bitcoin News
Sidechains Can Provide ‘Scalability and Flexibility Needed for Real-World Applications’ — Horizen Labs CEO
All-in-one infrastructure solutions may be what is needed to drive the adoption of Web3, but such solutions might turn out to be complex and not as flexible, Rob Viglione, the co-founder and CEO at Horizen Labs, has argued. In addition, Viglione believes that such comprehensive infrastructure solutions “may not be as compatible with tools that sit outside of the services tech stack.”
Making Infrastructure Solutions ‘More Interoperable and Composable’
Furthermore, all-in-one infrastructure solutions are likely to make it difficult for developers to adapt their applications to new programming standards, the CEO of the blockchain solutions group added. Meanwhile, when asked why sidechains are needed, Viglione pointed to their ability to expand the functionality of existing blockchains “requiring significant modifications to their core codebase.”
In written answers sent to Bitcoin.com News, the co-founder also argued that sidechains can play a critical role in Web3 by “providing the scalability and flexibility needed for real-world applications.” With respect to ways that the so-called Web3 backbone can be strengthened, Viglione said this can be done by making infrastructure solutions like blockchain software development kits (SDKs), wallet SDKs and dapp development tool kits “more interoperable and composable.”
In the rest of his answers to questions sent to him via Telegram, Viglione also offered thoughts about the future of application or enterprise-specific custom chains.
Bitcoin.com News (BCN): When looking at the existing Web3 infrastructure, one can see that it is dominated by specialized players in various areas — such as node providers, indexers, SDKs, and wallets. Do you think all-in-one infrastructure could improve the developer experience to accelerate Web3 adoption?
Rob Viglione (RV): A key determinant for the adoption of Web3 is ease of use. Developers must be able to build and scale blockchains and dapps, and users must be able to interact with them with minimal friction. Infrastructure providers like Ankr, Thirdweb, and others help reduce the barrier to entry for developers looking to launch new projects. All-in-one infrastructure providers allow developers to develop tools more easily and quickly, shortening the time required to go to market and test out ideas.
An all-in-one infrastructure could benefit developers by eliminating any compatibility issues between wallets, smart contracts and nodes as all components would be offered as a single packaged service.
While these companies offer plenty of supporting tools for developers launching web3 applications, it remains to be seen how well each tool performs relative to competitors that are focused entirely on one type of infrastructure.
BCN: What would be the downside, if any, for developers and enterprises relying on an all-in-one infrastructure solution?
RV: The main drawbacks of all-in-one infrastructure solutions are complexity and lack of flexibility. Developers will need to contend with UX/UI designs that may be suboptimal for their applications, while customization may be expensive or limited due to standardized setups. Furthermore, comprehensive infrastructure solutions may not be as compatible with tools that sit outside of the services tech stack. This could make it difficult for developers to adapt their applications to new programming standards.
BCN: With the era of multi-chain Web3 now seemingly upon us, what do you think are some of the challenges to ensuring better cross-chain privacy and security?
RV: Challenges include poor smart contract auditing practices that lead to bridge hacks, and the nascent implementation of zero-knowledge proofs to ensure privacy. Maintaining cross-chain security requires robust and universal auditing practices, which is difficult to achieve in an industry where new programming standards and cryptography methods are constantly being implemented across different blockchains.
When these blockchains become connected via a bridge, there is often very limited communication between them beyond authenticating the existence of assets on either side of the bridge. Upgrades to different areas of the protocol could have an impact on the bridge contract and expose new vulnerabilities if not carefully monitored.
BCN: In the last few years, sidechains are said to have become essential for helping pre-existing blockchains acquire the capabilities they lacked. Can you tell our readers the fundamental value proposition of sidechains and their role in taking Web3 mainstream?
RV: The fundamental value proposition of sidechains lies in their ability to expand the functionality of existing blockchains without overloading them or requiring significant modifications to their core codebase. Sidechains are essentially independent blockchains that are interoperable with the main blockchain and allow for the transfer of assets between chains.
This interoperability allows for a network of blockchains to operate as a single blockchain, thereby addressing issues of scalability and interoperability. For example, Horizen EON is an EVM-compatible sidechain launching on the Horizen blockchain, which will bring smart contract functionality to Horizen.
Sidechains can be optimized for specific traits like speed, security, privacy, and decentralization, and can be made private and permissioned or public and permissionless. This flexibility allows developers to build applications that are tailored to specific use cases, without being constrained by the characteristics of the main blockchain.
In terms of taking Web3 mainstream, sidechains can play a crucial role by providing the scalability and flexibility needed for real-world applications. They allow developers to build on top of existing projects without needing to achieve consensus for protocol changes, which can be a cumbersome process. This gives developers more freedom while maintaining the advantages of the main blockchain.
BCN: Your company Horizen is said to have recently introduced the EVM-compatible EON sidechain. What does EON mean for developers and users?
RV: Horizen’s EON is a public proof-of-stake sidechain and a fully EVM-compatible smart contracting platform. It takes Horizen’s focus on interoperability to a new level. For developers, this means they can easily build and deploy decentralized applications (dapps) within the security-focused Horizen ecosystem while also taking advantage of the programmability afforded by the Ethereum standard. This compatibility with Ethereum’s Virtual Machine (EVM) allows developers to leverage the existing tools, infrastructure, and community of Ethereum, which can significantly reduce development time and costs.
For users, EON offers the potential for more decentralized applications to be built on the Horizen platform. These could include decentralized finance (defi) applications, games, NFT marketplaces, loyalty programs, voting systems, and more.
Moreover, Horizen’s sidechain deployment protocol, Zendoo, allows developers to deploy their own independent blockchain like Horizen EON to meet their specific needs. This provides developers with greater control and flexibility over the speed, security, and decentralization of their blockchain.
BCN: While users may not interact with the underlying infrastructure, there’s no denying that infrastructure solutions form the backbone of Web3. What, in your opinion, still needs to be done to strengthen this backbone?
RV: Infrastructure solutions like blockchain SDKs, wallet SDKs and dapp development tool kits need to become more interoperable and composable in order to strengthen the backbone of Web3. Given the competitiveness of the web3 market, there’s often little motivation for these projects to establish common standards or work together in a manner that decreases difficulties for end users operating on-chain. As a result, we’ve seen fragmented liquidity, suboptimal user interfaces and security vulnerabilities as developers have tried to achieve interoperability between systems.
BCN: What are your thoughts on the future of the application or enterprise-specific custom chains?
RV: We see a bright future for app-specific chains (app chains). It’s clear that different use cases prioritize different blockchain features. A game, for instance, might value throughput more than decentralization; a financial application, meanwhile, might sacrifice some speed for higher security. A platform like Horizen enables this flexibility by offering a way for developers to spin up sidechains optimized for specific types of applications and offering interoperability between those blockchains, the Horizen mainchain, and even other blockchain ecosystems. The future will not be “one size fits all;” instead, flexibility and interoperability will be defining features.
What are your thoughts on this story? Let us know what you think in the comments section below.
Cardano Leads Development With Unique Sidechains And Toolkits
This month, the Cardano ecosystem team is getting ready to release a software toolkit that will let developers build their own sidechains.
On January 12, Input Output Global (IOG), a blockchain engineering firm created by Charles Hoskinson and formerly known as Input Output Hong Kong (IOHK), made the announcement. The official technical documentation for the sidechain toolkit was also released in the announcement.
Great move by @InputOutputHK I believe this help spread the usage of Sidechains for Cardano which is a good strategy if it evolves to use mithril / state proofs
As a core contributor to @Milkomeda_com we will continue to lead
and hopefully support others to join https://t.co/auqp2TkEg1
— nicoarq (@NicoArqueros) January 12, 2023
As a “proof-of-concept,” IOG developers have already used the toolkit to build an Ethereum Virtual Machine (EVM)-compatible sidechain public testnet. Once the audit is complete, developers will be able to deploy decentralized applications, create smart contracts, and transfer tokens between testing chains.
In addition to other application-specific capabilities, the toolkit will permit sidechain developers to select their consensus process.
Mainnet Growth
The IOG developers have also revealed that they have used the toolkit to build a proof of concept on a public testnet that is compatible with the EVM sidechain. Moreover, once the audit is complete, developers can launch dApps and smart contracts and transfer tokens between different test chains.
Finally, the announcement notes that sidechain creators can use the toolkit to choose the consensus mechanism that best suits their app.
The term “mainnet” refers to the parent blockchain, while “sidechain” describes a blockchain that operates independently of the mainnet. While the primary blockchain focuses on safety and decentralization, a sidechain can help the network scale.
In the long run, IOG expects this new development to lead to widespread adoption of the Cardano network, facilitating the launch of multiple Cardano sidechains and partner chains.
Meanwhile, Charles Hoskinson, the creator of ADA, has proposed that Solana joins Cardano as a “partner chain.” Hoskinson shared this during a recent “ask me anything” session.
He claims that there would be synergies between the two blockchains. For example, Solana can take advantage of Cardano’s security and infrastructure, while Cardano can take advantage of Solana’s faster network.
Fans’ Anticipation In Cardano Community
The announcement has been met with positivity from Cardano supporters, with one member of the community anticipating a price increase on par with Ethereum in recent years when several layer-2 sidechains and utility tokens were introduced.
2023 is the Year of #Cardano sidechains
– Midnight privacy sidechain
– Sidechains Toolkit EVM compatible
– Milkomeda, first Cardano sidechain
– …more to comeDo you remember what happened when people started to build sidechains/tokens on Ethereum?
Take that and make it x10. https://t.co/n8KWCX2SVh— Cardano Hieronymus (@CardanoHumpback) January 12, 2023
One enthusiastic participant predicted that the release and implementation of the toolkit would lead to a rise in the number of people making use of Cardano’s sidechains in the coming weeks and months.
Great move by @InputOutputHK I believe this help spread the usage of Sidechains for Cardano which is a good strategy if it evolves to use mithril / state proofs
As a core contributor to @Milkomeda_com we will continue to lead
and hopefully support others to join https://t.co/auqp2TkEg1
— nicoarq (@NicoArqueros) January 12, 2023
Meanwhile, the IOG team noted that the toolbox isn’t a remedy but will help with problem areas. For example, the security model, bridge experience, and SPO rewards structure are just a few. The team did say, though, that it was looking forward to community input and participation in these improvements.
According to its roadmap, Cardano will introduce parallel accounting systems to promote sidechains. This release is part of the Basho update that will allow for ADA’s network compatibility. IOG’s development of this toolkit marks their second sidechain solution for it.
IOG already implemented a simpler EVM-compatible sidechain in July to start the sidechain work on Cardano, so this isn’t the first sidechain solution they’ve integrated.
Additionally, in September, Cardano experienced its most crucial hard fork yet, the Vasil upgrade, which has been said to facilitate the cheaper and more efficient deployment of smart contracts and the operation of decentralized applications.
As of press time, ADA is trading at .3312, a 22.14% increase from the prior week’s price, with a 24-hour trading volume of 8 million.
Blockstream CEO Adam Back: How Bitcoin Sidechains Could Destroy Altcoins
Early cryptocurrency developer and British cryptography expert Adam Back has been speaking at the Transylvania Crypto Conference about Bitcoin sidechains. The basic premise is that this additional functionality could render many of the altcoins simply unnecessary.
Bitcoin Sidechains The Future
It has been five years today since the original whitepaper on Bitcoin sidechains was released. Back, who invented HashCash way before Bitcoin back in 1997, has been instrumental in cryptographic innovation and pioneered BTC Core development. His firm, Blockstream, provides the funding for the development of the predominant Bitcoin network client software.
The premise of sidechains as outlined in the paper was that users could move their BTC between multiple, completely different blockchains that could enable a wide range of new crypto features which have emerged in many of the current altcoins.
New functionality and features could all be built into Bitcoin by way of sidechains, theoretically rendering many of today’s altcoins redundant. According to Forbes, current sidechain technology comes with trade-offs in the areas of centralization and censorship resistance.
Back is bullish on the premise that a future Bitcoin could have such functionality. He clearly is not fond of the current state of the market which is packed with altcoins.
“In the history of altcoins, it seemed like there was a period where there were a huge number of them that had no features, and that played out. And then people started to need a new way to market them, so they added features. Some of them were real features, and some of them were stories to market.”
Speaking in a panel at the conference, Back added that a modular Bitcoin Core could enable developers to simply build on this as opposed to creating an entirely new blockchain and token.
“This financial incentive will remain, but it will have less credibility because if you have a very easy to use extension mechanism for Bitcoin and examples of extensions that do something simple that you can build on, there’s not really a good story about why you’re doing it somewhere else,”
He used the internet as an example stating that its development would be equally as messy if there were hundreds of forked copies of its underlying protocol, TCP/IP. He added that layer two protocols such as the Lightning Network could also make alternative payments processors appear pointless.
Not Exactly Decentralized
There are a number of current sidechains such as Blockstream’s Liquid but they are not entirely trustless. Back acknowledged this adding “Your risk with Bitcoin is that, ultimately, the coins are escrowed in some way – in a somewhat decentralized way,”
The current state of play is that altcoins do offer something different and trustless sidechains for Bitcoin are still a few years away.
Ripple’s token is a centralized enterprise level cross border banking platform and Ethereum offers a smart contract computer and decentralized finance platform – both totally different to Bitcoin. Even with sidechains for BTC it is very unlikely that the alternatives will simply disappear. They will need to evolve at the same pace or faster to survive.
Image from Shutterstock
The post Blockstream CEO Adam Back: How Bitcoin Sidechains Could Destroy Altcoins appeared first on NewsBTC.
Heres How Much Bitcoin Is Currently Locked Up in Sidechains
n Binance Chain is currently the largest Bitcoin sidechain by farn
CryptScout #BitFeed RSS – Bitcoin and Cryptocurrency News 24/7
Heres How Much Bitcoin Is Locked Up in Sidechains Right Now
n Binance Chain is currently the largest Bitcoin sidechain by farn
CryptScout #BitFeed RSS – Bitcoin and Cryptocurrency News 24/7
Are Prospects of Tron—Ethereum Merger and Side-chains Supporting TRX Bulls?
- Tron (TRX) buyers in control, add 19 percent from last week’s close.
- Sun Network introduces sidechains expanding Tron’s capacity.
They may be feuding and posting sarcastic comments, but Justin Sun says Ethereum collaboration may happen this year. If anything, that is bullish, and once it is official, Tron (TRX) will easily expand above 4 cents.
Tron Price Analysis
Fundamentals
Here’s one fact. Vitalik, the resolute and the unyielding founder of Ethereum will lose faith in humanity if Tron’s valuation exceeds ETH’s, which is at second after Bitcoin. At the same time, Justin Sun has promised to build a monument just in case his platform’s valuation spikes, flipping Ethereum to second. That’s the kind of rivalry between the two.
While they are competitors which ardent followers, it is now emerging that the two may collaborate this year according to reports. In an interview with Rachel Wolfson’s TheCryptoChick, Justin Sun acknowledged that competition is healthy and would ultimately help the cryptocurrency space grow.
“First of all, everybody knows that Tron and Ethereum compete in the dApp [sector], for sure. But I think definitely that this competition will result in a better product – the competition between Ethereum and Tron benefits the whole industry.”
Adding that;
“I think that even within this year we will see Tron officially collaborate with Ethereum, and will be something good for the industry.”
Perhaps in readiness, the Sun Network, which Justin says is all about interoperability and side-chains, seeks to expand the Tron Network capacity and overall TPS.
My recent @badcrypto interview with @justinsuntron of @Tronfoundation is now live! https://t.co/Zo8GFrhKx1 Listen to what Justin has to say about the USDT-TRX #stablecoin, thoughts on enterprise #blockchain and thoughts on @ethereum
— Rachel Wolfson (@Rachelwolf00) April 6, 2019
Candlestick Arrangement
After peaking in mid-Jan 2019, days before the historic BitTorrent ICO, TRX has been in consolidation mode, dropping to as low as 2.1 cents before recovering as Bitcoin inched higher hauling altcoins from Feb pits.
All the same, we note that Tron (TRX) despite plans of the SUN Network and potential collaboration with Ethereum is yet to clear Jan highs and 3.1 cents. As a result, and in line with our last TRX/USD trade plan, risk-off traders should stay in the sideline even though TRX is registering double-digit gains and up 19 percent in the previous week.
Ideally, what we would like is a high-volume break above 3.1 cents or Jan 27 highs confirming the double bar bull reversal pattern of Jan 13-14. Undoubtedly, that will set in motion the next wave of higher highs thrusting prices towards 4 cents, our immediate target.
Technical Indicators
Because of our trade plan and the realization that buyers are yet to clear 3.1 cents, we shall retain a neutral but bullish outlook. Any rally above 3.1 cents must be with high transaction volumes exceeding Feb 4—42 million confirming buyers of Jan 14.
Chart courtesy of Trading View
The post Are Prospects of Tron—Ethereum Merger and Side-chains Supporting TRX Bulls? appeared first on NewsBTC.
IOTA, EOS, Litecoin, Stellar Lumens, EOS Technical Analysis: EOS Side-Chains Talk Dominate
The slide seems to pick up even as bullish reversal pattern print out in weekly charts. EOS, IOTA and Litecoin are experiencing resistance to upsides. In my view, and in light with the general bearish trend, sellers might take control today and push prices towards immediate supports.
Let’s have a look at these charts:
EOS Technical Analysis
Like Ripple (XRP), price stability of EOSIO RAM is important for the very existence of the network. As it stands and according to Dan Larimer, the price of RAM shall be determined by free markets dynamics and of course to enable that, we have Bancor Relay Tokens.
#EOS RAM is up 32x since launch and still going up. Is EOS ram really as finite as people think it is? Mainnet ram is currently 64gb, just ~3% of the 2tb that will be available eventually. Side chains extend this further… @EOS_io @go_eos #blockchain https://t.co/b7g8qB7m9Z
— EOS Silicon Valley (eossv12eossv) (@EOS_SV) July 3, 2018
All Bancor does is to enable buying and selling of RAM at previously agreed market rates but since its vital for dApp development, developers ought to know about future prices for planning purposes. To tame prices, there are proposals of setting side-chains. The problem now is creating a smart contracts layout that perfectly links these side chains with the main EOSIO chain. Further suggestions indicate that stand by BPs would be required to contribute towards this interesting development.
Despite recent dips, EOS is a tad bit lower and finding obvious resistance at . While we remain positive in this overwhelmingly bearish market, buyers need to show their grit and push above this main resistance line to activate longs. Before then, we remain neutral as laid out in our previous trade plan and should sellers print below July 2 lows at .8, then we should liquidate on every pull back with targets at .
Litecoin (LTC) Technical Analysis
As different jurisdictions declare crypto mining an environment disaster and inefficient, Kumamoto Electric Power Company and OZ Mining Corporation have solid plans in place and shall begin mining by August. To hit their targets, they will install 14,000 mining equipment running every day of the week. They will be timely for Japanese investors because at any time of their convenience they can visit these data centers and take a tour whenever they wish.
Still, movement in LTC has been limited with no ground for upsides as the daily chart shows. We reiterate again saying that unless there are no gains above , buyers should remain neutral. Because the general trend is down and there are resistances for upsides, sellers can decide to enter at current prices.
In that case, safe stops should be at July 2 highs at with targets at . Of course, as we are up-beat about LTC prices, that tight stop will be a fall back in case there is an up-thrust as buyers sync with June 29-30 and July 2 price actions.
Stellar Lumens (XLM) Technical Analysis
Oddly enough, Stellar Lumens is stable and moving inside July 2 high lows. As it does that, our Stellar Lumens (XLM) buys are live because prices are trending above 20 cents, our buy triggers. Now, while we acknowledge that sell pressure is immense-and it has for the last two months or so-trading with it makes sense.
That’s why should we see depreciation below July 2 lows at 18 cents, our buy projections would be null. However, any strong break above 23 cents would signal buy pressure meaning traders would have to buy on dips with targets at 30 cents and later 50 cents.
Tron (TRX) Technical Analysis
There are schedules for Tron’s VM coming this July 31 with Justin Sun saying the launch will be preceded by a launch of a secret project. We are yet to know what this secret project is and all we know that it must be huge enough going by the speculation it cause on Reddit. Anyhow, at the moment, Tron has nine dApps and price wise it is down to 12 spot sliding three percent in the last 24 hours.
In line with yesterday’s assessment, TRX is a sell now that prices are trading below July 2 lows at 3.5 cents. This is no surprise and June 29-July 8 events were short covering offering an opportunity for sellers to unload on pull backs.
I suggest selling at current spot prices with stops at 4.2 cents and targets at 2.5 cents. The only counter effect that can cancel this trade plan is any gains above 4.2 cents hitting our stops and accompanied by high trade volumes. That would hint that buyers are alive and realigning according the events of last 10 days or so.
IOTA (IOT) Technical Analysis
There is only one thing that can cement IOTA buy position: buyers pumping price above July 2 highs and .3. Before then, we shall remain bearish-though with a bullish leaning-even if there is that three bar bullish reversal pattern with anchors at 90 cents a key support line.
As it stands, buyers might push higher but, if sellers follow through and sync with the general bear trend then we might see further losses below 90 cents triggering our sells. The best approach then when trading IOTA considering the technical formation is to wait for break outs in either direction.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.
The post IOTA, EOS, Litecoin, Stellar Lumens, EOS Technical Analysis: EOS Side-Chains Talk Dominate appeared first on NewsBTC.
ZombieChain Comes Alive: Can Ethereum Sidechains Save the Dapps?
Loom Network, which came up with the idea of dedicated “dappchains” for scalable decentralized apps, is embracing sharing.
CoinDesk
Week in Review for February 23, 2018 Sidechains, Stings and Venezuela
In the past week, news from Venezuela was at the forefront, where crypto mining is way up due to cheap electricity. But their stab at launching their own crypto, the Petro, is not looking like a great plan so far.Good news in regulation, however, is coming from the state of Wyoming as the House unanimously passed two pro-blockchain bills, with five more in the pipe.On the technological front, researches think they have solved a big part of the sidechain puzzle and have published a detailed pa
CryptScout #BitFeed RSS – Bitcoin and Cryptocurrency News 24/7