The wind blows OMG, who is the king of Layer2?

深潮TechFlow

特邀专栏作者

2020-08-21 17:02 (UTC+8)

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Layer2, the wind is coming!

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Layer2, the wind is coming!

Editor's Note: This article comes fromDeep tide TechFlow (ID: Tech-Flow), Author: Song Xiaowan, reproduced by Odaily with authorization.

Oh my God！

Editor's Note: This article comes from

Deep tide TechFlow (ID: Tech-Flow)

, Author: Song Xiaowan, reproduced by Odaily with authorization.

Scream dedicated to OMG Network!

Market data shows that OMG rose from $2 seven days ago to a maximum of $9.7, a maximum increase of 385%.

Unexpected, reasonable.

With the explosion of DeFi, Ethereum is comparable to Beijing's East Third Ring Road at its peak, with sky-high gas fees and slow transfers... performance severely limits the development of Ethereum's DeFi ecosystem.

Etherscan data shows that since June, the average gas fee of Ethereum has continued to increase from 40Gwei to above 100Gwei. Among them, on June 11 and August 13, the fee once exceeded 700Gwei and 263Gwei.

Blockchain blogger David Kajpust said on Twitter that due to the high cost of Ethereum, the DeFi lending protocol Compound may be considering building and developing the project based on a different public chain or Layer2 blockchain.

OMG Network is a trustless, non-custodial second-layer expansion solution designed for Ethereum value transfer.

On August 19, the stablecoin issuer Tether officially issued the USDT stablecoin on the Ethereum expansion project OMG Network, which is also considered to be the direct cause of OMG's recent surge.

In addition, in early August, OMG Network released the Ethereum expansion plan designed for Reddit, and will bid for the Reddit points issuance plan.

In addition to OMG, Layer 2 related concept targets, POA, CELR, and LRC have all taken off.

Layer2, the wind is coming!

"secondary title"Ethereum needs Layer2

In the absence of sharding and Ethereum 2.0, the performance of Ethereum is now on the verge of limit.

With the continuous launch of various applications such as DeFi liquidity mining, DEX, games, and funds, even the vigorous development of stablecoins is enough to overwhelm Ethereum. Today's inefficient Ethereum cannot support the smoothness and smoothness of its ecological applications. low cost.

Security, Scalability, Decentralization

, can not have both, in order to solve the "impossible triangle problem" of the blockchain, many solutions have emerged, one of which is Layer 2 (two-layer network).

Layer 2 is often referred to as an "off-chain" solution, and its main purpose is to extend the performance of blockchains while retaining the decentralization advantages of distributed protocols.

In Ethereum, the Layer 2 technology system is a system connected to Ethereum, using Ethereum as the base layer for security and finality, reducing data processing on the blockchain on a large scale by running calculations outside the chain, and also That is to say, not all transactions need to be completed on the Ethereum mainnet.

If you take a longer view, the combination of PoS and sharding technology, Layer 1 and Layer 2 in the future can make Ethereum truly take off exponentially, meet the needs of most open finance and DAPP, and move from "simple calculator" to Become the world computer.

Vitalik, the founder of Ethereum, made a simple calculation. He once mentioned in AMA:

If we get 100x from sharding and 100x from Plasma, those two basically provide a 10,000x scalability gain. This means that the blockchain will be powerful enough to handle most applications that people try to handle.

Plasma

The ideal is beautiful, the first step of the dream, starting from Layer2!\MATIC\LOOM

secondary title

Layer2 a hundred flowers bloom

Regarding the layer2 solution, iteratively, at present, there are mainly the following solutions:

Representative: OMG

The Plasma solution was the first to appear, marked by Vitalik's Plasma paper.

Plasma is a side chain with non-custodial characteristics. Compared with general side chains, if any error occurs in the Plasma chain, the error can be detected, and the user can safely exit from the Plasma chain, preventing attackers cause any lasting damage.

Plasma created a sub-blockchain attached to the main Ethereum blockchain to achieve performance expansion. The sub-chain can migrate faster and bear lower transaction costs. We can perform many complex operations in the sub-chain level. Run full-fledged applications with thousands of users while maintaining minimal interaction with the Ethereum main chain.

The first product-level implementation of Palsma was made by Loom Network in 2018 using Plasma's variant, Plasma Cash, focusing on non-homogeneous tokens (NFT) and games.\Zksync\Loopring

Today, the most prominent representatives of Palsma are Matic and OMG Network, both projects are dedicated to extending general-purpose Ethereum transactions. Matic uses a PoS consensus mechanism on the side chain, and the OMG network is similar in direction to Matic, but the current network relies on a fixed set of validators.

In June, OMG Network V1 released the Beta version of the main network, which can expand Ethereum to thousands of transactions per second, while reducing transaction fees to one-third.

Rollup scheme

Representative: Optimism

If Plasma is the star of yesterday, then the Rollup solution is the popular fried chicken, V God's favorite now.

When Tether decided to adopt the OMG network, Vitalik couldn't resist recommending the Rollup family solution to Tether CTO.

The Rollup solution solves the data availability problem by storing all transaction data in a packaged/compressed form on the Ethereum blockchain.

Optimistic Rollup schemes use Fraud Proofs to catch invalid transactions and punish validators who allow them. zk Rollup uses zero-knowledge proofs (such as SNARKs) to prove the validity of the Layer-2 transactions processed, and the proofs themselves are stored on-chain along with the transaction data.

state channel

The main force in the field of Optimistic Rollup is Optimism; zkSync mainly has two projects in fierce competition: Loopring (Loopring Protocol) and Matter labs' zkSync project.

Loopring initially used zk Rollup to implement a Layer 2 decentralized exchange, and has entered the Layer 2 payment field, launching Loopring Pay.

Compared to Loopring, which focuses on decentralized exchanges, zkSync focuses on the core architecture. The latest news is that they are about to issue their own governance tokens.

state channel

Representatives: Celer Network, Raiden Network

The state channel is an entry-level Layer 2 solution, and it is also the most widely used Layer 2 solution today. For example, the Lightning Network on Bitcoin is a state channel.

The design idea of the state channel is to put some transactions outside the blockchain, and change the consensus of the blockchain from confirming each step to only confirming the result.

Usually consists of three steps:

1. Both parties to the transaction lock the initial blockchain state (such as the balance of both parties) in a smart contract, which is very similar to a multi-signature wallet. This ensures that the funds in the wallet are unlocked and transferred only after both parties have signed the update;

2. Both parties realize the transaction by passing state updates (such as balance updates) between batches. If both parties agree, a state update is "signed", which is submitted to the smart contract to unlock funds;

3. When both parties complete the transaction, they each submit a state update to the smart contract. If the state updates submitted by both parties match, the state of both parties' blockchains (such as the balances of both parties) will be unlocked, which will usually be different from the original state of both parties.

However, since the attention of the entire Ethereum ecosystem has been largely attracted by more flexible expansion solutions, such as Rollup, the current state channel has basically been left in the cold.