Solution to Ethereum's Scaling problem + Smooth transition to Eth 2.0

Robust Crypto

jr. member

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Quote from: tbterryboy on August 31, 2020, 02:05:36 PM

It is not really a dead end for ethereum blockchain as you might imagine the way it is right now. It is having a bit of a hard time because they are postponing the 2.0 as much as they can while working on it so when something unexpected like DeFi craze happens while there is a pandemic and nobody is at the offices and they are literally working on something else at the time, it is always normal that it would be a big clogged, we have seen ETH be clogged before as well but everything went back to normal isn't it?

After that you could have 2x the transaction count and it would have handled it well enough. Ethereum blockchain constantly gets updates, it is one of the most active big timer out there and honestly I believe this will eventually end be cheaper again soon as well.

That is only if activity decreases and it won't.

optimisticcm

member

Activity: 210

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Sovryn - Brings DeFi to Bitcoin

There are many solutioms coming up in the market now especially due to high gas prices of etheteum network people are looking at alternatives, this should put the pressure on eth developers to either find quick solution to high fee or launch eth 2 soon otherwise eth can stay behind in this race.

tbterryboy

sr. member

Activity: 2030

Merit: 323

It is not really a dead end for ethereum blockchain as you might imagine the way it is right now. It is having a bit of a hard time because they are postponing the 2.0 as much as they can while working on it so when something unexpected like DeFi craze happens while there is a pandemic and nobody is at the offices and they are literally working on something else at the time, it is always normal that it would be a big clogged, we have seen ETH be clogged before as well but everything went back to normal isn't it?

After that you could have 2x the transaction count and it would have handled it well enough. Ethereum blockchain constantly gets updates, it is one of the most active big timer out there and honestly I believe this will eventually end be cheaper again soon as well.

Zeehaxan

member

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Merit: 10

WhalesHeaven - Custody Free Swap Exchange

All your projects are good but if you have listed the marketcap of each coin that would have been good to evalute them as investment opportunity.

Robust Crypto

jr. member

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Reddit mods are talking about why xDai deserves to win

https://www.reddit.com/r/ethtrader/comments/ihlzmm/why_xdai_stake_deserves_to_win_the_reddit/?utm_source=share&utm_medium=ios_app&utm_name=iossmf

Robust Crypto

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It's moonin!

$27 and counting!

Robust Crypto

jr. member

Activity: 100

Merit: 1

Robust Crypto

jr. member

Activity: 100

Merit: 1

Quote from: int03h on August 28, 2020, 04:43:58 AM

I will buy XDAI when Ethereum 2.0 launches and the projects above actually prove their theory. Filecoin currently announced will help the Ethereum network reduce transaction costs. I find Ethereum very difficult to scale and the Ethereum network is very heavy and sluggish.
I came across XDAI, their technology is very good and there are a few projects that have learned from XDAI to include their products. As in the post, the potential of XDAI is enormous.

When ETH 2.0 launches, xDai will lose its main purpose that it has today, which is helping Ethereum scale and then transition into 2.0. So, I mean, that's like saying in 2016 that you will only buy Ethereum after DeFi projects have been released and proven.

xDai has proven itself and the developers can concur the latter.

You do you Wink

Just me 2 cents

int03h

full member

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I will buy XDAI when Ethereum 2.0 launches and the projects above actually prove their theory. Filecoin currently announced will help the Ethereum network reduce transaction costs. I find Ethereum very difficult to scale and the Ethereum network is very heavy and sluggish.
I came across XDAI, their technology is very good and there are a few projects that have learned from XDAI to include their products. As in the post, the potential of XDAI is enormous.

Robust Crypto

jr. member

Activity: 100

Merit: 1

Quote from: bayu7adi on August 27, 2020, 10:10:39 PM

Very informative and I am quite happy that you explain it in sufficient portions to understand.

Quote from: Robust Crypto on August 27, 2020, 05:32:04 PM

~snip~
Hope I provided something of value today to you. I would still buy xDai at these prices because it's dirt cheap.

If indeed the main reason you bought it was because it was cheap, I couldn't agree more before I knew what the normal price you were trying to say. This answer will affect the interest of some people here...

I got in at $1.5, but $20 is still cheap as hell!

bayu7adi

hero member

Activity: 1470

Merit: 555

dont be greedy

Very informative and I am quite happy that you explain it in sufficient portions to understand.

Quote from: Robust Crypto on August 27, 2020, 05:32:04 PM

~snip~
Hope I provided something of value today to you. I would still buy xDai at these prices because it's dirt cheap.

If indeed the main reason you bought it was because it was cheap, I couldn't agree more before I knew what the normal price you were trying to say. This answer will affect the interest of some people here...

Robust Crypto

jr. member

Activity: 100

Merit: 1

Quote from: Redawn on August 27, 2020, 06:10:30 PM

Thanks for sharing this! I was always wondering why xdai is so popular but your post make things very clear. Also interesting is the fact that MakerDAO and Portis are validators in the network.

xDai might be considering a rebrand, since getting the real message out is kind of complicated.

Thanks for reading the post

Redawn

member

Activity: 122

Merit: 10

Thanks for sharing this! I was always wondering why xdai is so popular but your post make things very clear. Also interesting is the fact that MakerDAO and Portis are validators in the network.

benthach

legendary

Activity: 1764

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alright thanks for sharing come again

Robust Crypto

jr. member

Activity: 100

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Greetings everyone

I was hesitating to write a post about this project a week ago, but since then, so many developers have come out in support of the project and even encouraging others to use it, such as 1. Vitalik Buterin 2. Anthony Pompliano 3. Joseph Lubin 4. Dovey Van and others alike, that I just had to. No no, I must! This project is very much undervalued. What we're seeing is called a slow and steady rise, healthy gains. It's still a hidden gem due to being on only "obscure" exchanges (no Kucoin, Huobi, Binance, Balancer etc.).

To start off, xDai Chain is a stable payments blockchain designed for fast and inexpensive stable transactions. xDai is used for transactions, payments and fees, and STAKE is used to support Proof-of-Stake consensus. Also - the xDai chain is an EVM sidechain that uses a different consensus model (POSDAO) than Ethereum. The underlying architecture, however, mirrors Ethereum 1.0, meaning that smart contracts can be written and deployed in exactly the same way using a different RPC endpoint. What does this mean for Ethereum? It means that any contract that works on the Ethereum mainnet can be easily redeployed to the xDai chain, where the transaction costs are minimized (less than $0.01), and all fees and transactions are paid with a single token, xDai (stablecoin - not to be confused with STAKE, which is used for PoS consensus).

Here are some reasons why someone should use the xDai chain (taken from website):

✅Fast transaction times (5 seconds) & low transaction fees (500 tx for $.01).

✅Digital cash. A stable chain is ideal for real world value exchange where 1 xDai = 1 US Dollar.

✅A single token for transactions & gas fees.

✅On-chain, decentralized Random Number Generator.

✅Permissionless delegated Proof-Of-Stake based consensus with public POSDAO (coming soon - currently transitioning from private to public POSDAO).

✅STAKE token allows community consensus participation and incentives.

✅Wide-ranging Community Support (see xDai Validator Organizations).

✅Outstanding energy efficiency.

✅Extreme usability with tools like Burner Wallet & Burner Wallet 2.

✅Growing ecosystem designed to support stable person-to-person transactions, micro transactions, conference currencies, community currencies and more.

✅Smart Contract, DApp & toolset compatibility with other Ethereum-based chains like Ethereum, Ethereum Classic and others.

✅Experiencing the magic of crypto for the first time!

The Great Reddit Bake-off

I know what you're thinking - what about OMG? Matic? Aren't those better than xDai? This is the list of projects that are competing in the Reddit Bake-off:

StarkWare
Dragonchain
Matic Network
Solana
Everest
xDai and Splunk
OMG Network
NEAR
Fuel Labs
Raiden
Connext
Arbitrum
Aztec
MatterLabs
Abridged and Kchannels
SKALE
Syscoin
Meter
Dapp Solutions
Hubble Project
Minter
Celer

There are only 3 projects worth considering - "Matic Network", "OMG Network" and "xDai" and "Splunk" together. I'm only going to compare these three projects based on the results they put up for the big Reddit Bake-off.

Matic Network vs xDai

Instead of copying and pasting their Reddit submissions and boring the hell out of you, the readers and potential stakers Wink

I thought about using inforgraphics that xDai put up, comparing itself to OMG and Matic.

Full version can be found here

1 .Stable chain vs volatile chain: xDai is a stable chain, meaning transactions as well as fees are paid with a stable token (xDai, which inherits the Dai peg to the US dollar). On xDai, buyers and sellers know that transactions retain their value, and developers can plan for costs related to micro-transactions. On Matic, users can send stable currencies but fees are still paid with MATIC tokens, and tx costs are low but unpredictable.

2. Single Token vs Dual Token structure. The Matic token is used for both transactions and as a staking/delegation token. Token prices, supply, and market forces impact chain transactions as well as the underlying Proof-of-Stake consensus. The xDai chain separates these concerns, with a stable transactional coin and market-driven staking coin. The STAKE staking token is a multi-chain staking token, and may be used for staking on other chains.

3. Asset transfers between chains: Both chains are efficient when transferring assets from the Ethereum Mainnet, it takes a short amount of time to move ERC20 or ERC721 tokens from Ethereum to Matic or xDai.

However, moving assets back to the Ethereum Mainnet is a different story. On the xDai chain, assets can be moved in minutes to achieve very quick liquidity. With Matic, transactions must undergo a 7 day waiting period (due to fraud checks) before they are available on Ethereum.

Both chains also have allow for arbitrary messages (data calls) to pass between chains. With Matic messages can only be transferred in a single direction - from Ethereum to Matic. The Arbitrary Message Bridge on xDai allows for bi-directional message transfers and contract calls, creating additional interoperability.

4. Transactions Per Second (TPS) and Block Times: Matic reports extremely fast times, 1 second blocks with 7000 TPS (and theoretically up to 65,000 TPS)! The xDai chain produces 5 second blocks with 70 transactions per second, which aligns with the current volume requirements of the chain.

While xDai TPS is much faster than the Ethereum mainnet (15-20 TPS), there is still a wide gap between Matic and xDai. This is not problematic - optimizations can be made to accommodate higher transaction rates as needed. The xDai chain is capable of scaling horizontally (by adding additional chains connected by bridges) or vertically (by optimizing nodes).

Because the POSDAO Proof of Stake algorithm allows for a configurable consensus, there are plans to move to HoneyBadger BFT consensus which will increase TPS by a factor of five. Additional research is being done around transaction prioritization, block parameter tuning and other optimizations to make sure tx capacity and usage requirements remain in alignment.

5. Staking: Both chains offer validator and delegated staking opportunities as well as a UI for staking. However, the functionality and underlying processes differ. With Matic, validators and delegators can stake with just 1 Matic token. Validators take a % of any delegators commission, and the reward pool of 1.2 Billion Matic tokens is designed to support the network for 5 years. After that time, rewards will transition to tx fees. Validators are chosen based on stake amounts, and when they want to exit the protocol, must wait for 21 days before withdrawing their funds.

xDai validators must have 20,000 STAKE in order to declare node candidacy, and delegators must have 1,000 STAKE. This makes potential collusion much more costly for any malicious actors. Validators do not charge commission, but are guaranteed 30% of staking rewards. Reward emissions are created continuously as rewards and are based on how much STAKE is staked into the protocol. Validators can submit a withdrawal claim during a staking epoch (7 days) and can withdraw their funds once the epoch is over. Since misbehavior is accounted for during the staking epoch, there is no need to wait for 21 days as with Matic to ensure there was no malicious activity.

OMG Network vs xDai

Full version can be found here

1. Stable vs volatile chains: xDai, which is used to pay for fees in our network, inherits its value from the US dollar. Thus, all transactions through a buyer, seller, or even from an automatic contract perspective are infinitely more predictable versus a volatile payment token. We believe this creates a massive opportunity for planning a financial ecosystem related to micro-transactions (on-demand product usage, like streaming services, energy, etc), or even large scheduled services (regular remittances, such as paychecks, bills, dividends, and tax events therein).

Unfortunately, this is a major fault point for services offered by volatile chain solutions such as OMG, where fees are paid with their token, which can change value at any moment due to uncontrolled market forces. This creates unforeseen costs for all involved in real world applications, which can result in service slowdowns or passing costs along to customers.

2. Cost optimization: While both chains offer the reduction of transaction costs, xDai achieves this at a significant advantage over its competitors. In brief, an Ethereum transaction costing approximately $5 would cost around $1.50 or so for OMG, whereas xDai is able to bring this cost down to less than $0.01, effectively reducing the cost of transactions by 500x.

2.1 Speed: xDai presents itself as a faster alternative to Ethereum while maintaining block and gas limit compatibility. We acknowledge that OMG is able to exceed our benchmarks considerably, however, this is still theoretical and not yet shown with real-world usage. Even so, xDai possesses horizontal and vertical scaling capability through chain addition, allowing it to meet much higher demands than our current estimates.

3. Token and Smart Contract Support: Possibly the most powerful aspect that xDai maintains over its competition is its full compatibility with smart contracts on Ethereum, which can be directly imported to our network with little effort. ERC721s can also be bridged to xDai, as well as other token types. In doing so, the full Ethereum experience of niche currencies, dApps, finance protocols, games, DAO governance and more, can be integrated into xDai this very moment. Competitors such as OMG, however, are not designed to handle contract interactions, and thus are limited solely to payment operations.

4. 2 minute exit vs 2 week exit: Moving assets to either chain is easy. Moving them back to Ethereum is easy on xDai, and more difficult with OMG. Due to exit game challenge periods, OMG assets cannot be transferred back to Ethereum in a timely way. With the TokenBridge interoperability solution, tokens can be moved from xDai to Ethereum in minutes.

5. Production level quality vs an Open Beta: One of our favorite aspects to flaunt about the xDai project is that we’re a proven, resilient, in-production solution for over two years! OMG makes their position clear as a disclaimer on their website:

Please remember the OMG Network is in beta and may be subject to bugs or errors. The OMG Network team is committed to ensuring that these issues are resolved quickly. But we ask you to exercise caution and transact real value on the network at your own risk.

Disclaimer from https://omg.network/omg-network-scales-ethereum/ (bottom of page)

Further, OMG’s own CTO Kasima has said:

As someone who’s running a business, I would be wary of anyone willing to put absolute faith in a research-grade solution or tool. There are a lot of unknowns, and it’s risky for customers.

Quote from OMG AMA at https://omg.network/ama-30-omg-network-challenges/

Alternatively, we encourage you to stress test or push our network as hard as you’d like. We have been transacting real value on our network with good faith in a proven technology that’s been processing thousands of transactions a day. Whether it’s large scale or a micro-transaction, the thought of issuing a disclaimer or a word of caution such as those above hasn’t crossed our minds. No doubt, we’ve been live for two years, and haven’t had a problem since.

Another important part of Reddit bake-off is the qDAI!

To explore scaling for hundreds of millions of users, we set up a modified chain called qDai with 1 second block times, 74M gas per block, and 150+ claim transactions per second. Using this configuration, we completed the load in 29 minutes, a 220X improvement from the requirements.

Contract addresses on qDai:

SubredditPoints: 0xE06Db2BF2A5A29B3B91e026D06b2cA1E306d7bf5

Distributions: 0xBd5a444fADDC823c0f17B1f3cF9a2F231e85eD1C

Subscriptions: 0x31D652237926A74c30a5f8CD138Ecd2Bd4B58e0e

Please see our challenge gitbook where we organize our results, detail the processes, and address challenge requirements: Gitbook link

The Bullish Case for xDai

As I've mentioned in the beginning - "...so many developers have come out in support of the project and even encouraging others to use it, such as 1. Vitalik Buterin 2. Anthony Pompliano 3. Joseph Lubin 4. Dovey Van and others alike..." - it's not only xDai and its community thinking that its superior to its competitors - and by no means do I mean that Matic or OMG are bad, it's a competition for who can solve the problem best. That's all - we can see Vitalik recommending using xDai, Dovey suggesting you should utilize xDai if you're planning on creating a DAO. Here's a recent tweet from Ameen (CEO of SpankChain) on why he thinks xDai is going to win The Great Reddit Bake-off. Why are they recommending xDai and not OMG or Matic? Simple. xDai is READY FOR USE! You heard it right. NO testnets, betas or alphas. It is ready to go!

xDai is NOT a rival of Ethereum. It is not planning to replace Ethereum, like many other projects are trying to. It is Ethereum's sister chain. Helping Ethereum scale and transition smoothly to Eth 2.0.

Developers will be able to migrate to new Eth 2.0 from xDai in matter of few clicks and xDai will become part of Eth 2.0 and join the Sharding adventure.

The most important fact about xDai is that - it scales Ethereum TODAY.

xDai has been working with AWS (Amazon Web Services) and they put out an article on xDai. Here's the pinned tweet from xDai's official Twitter - "We've been collaborating with Amazon Web Services to show how easy it is to create custom ERC20 tokens using FactoryBurnerFactory on the xDai Chain and spin up a node on AWS!.

xDai has also been recently added to Mooniswap. What is Mooniswap? "It's next gen. AMM protocol by #1inch! Redistributes earnings to liquidity providers, capitalizes on user slippages and protects traders from front-running attacks." Currently Mooniswap hovers around 20m volume, that's 10% of Uniswap's volume. xDai is planning on giving LP providers on Mooniswap Staking rewards as well, but that is not decided yet. It means you get your rewards for slippage, fees and staking as well. You won't see that much incentive on any other platform now, would you?

Anyone can migrate to xDai with few simple clicks. Here's a guide from Dekan Brown (DAOHaus) on how to migrate to ready-for-use xDai chain.

xDai is now supported by QuickNode.

PowerPool has launched a testnet on xDai's chain

There has been a lot of talk going on about big DeFi players moving to xDai. Few days ago, one of xDai's community members linked blockscout and what was in there? Transactions in Aave, Comp and YFI on xDai.

Here are the links to each one of them >

Aave

Comp

YFI

Today, on 28th of August, xDai's team did an AMA with Wolf Crypto on Telegram. While I was readying through, I noticed this. Igor mentioning KickBack and DAOHaus, two converts who have migrated over to xDai and adding "... and some other big ones that are getting ready but can't quite announce yet...". I'm speculating here, but we can all connect the dots.

Here we can see Marc 'Billy" Zeller, integrations lead at Aave, talking about xDai and how great it would be if Aave, in the future, moved to xDai > "Deploying an Aave market there would be easy. I hope that will be something considered by the aave community in the future.".

MetaCartel Ventures is migrating to xDai

Here'a a snippet from xDai's interview by wolf Crypto:

''The Arbitrary Message Bridge is really exciting for xDai, because it includes the new OmniBridge, where any ERC20 compatible tokens on Ethereum can be bridged to xDai, without deploying additional contracts or anything. RaidGuild is working up a UI for this, and we’ve already bridged a bunch of tokens (token list above)

If you'd like to.... go ahead! We're looking at things like DEXs and really the ability to bridge, so people can bridge their own tokens. The JOON token is an example of a personal token that has been bridged to xDai and its used with KickBack for events.

It’s the governance token for the network, so it’s primary purpose is for staking and ensuring security through staking. With DeFi composability, there are new use cases coming up where STAKE can be used as collateral, for influence farming and other up-and-coming ideas.

Note that its also multi-chain compatible, so it could be used for staking and governance on other chains as well, it's not strictly limited to xDai.

What does this mean? It means there can be synthetic assets on the xDai chain! Ever heard of Synthetix Network? Yeah, that can be migrated to xDai. Aave? That too. Comp? Yes. Yearn? Of course.
The point being - everything can migrate to xDai's chain right now, today, hence, solving Ethereum's scaling problems.

At last, there is still plenty of room to grow. It has yet to win the big Reddit Bake-off, be listed on multiple known exchanges, have those big projects migrate to it that Igor mentioned and so much more! It is just unbelivable! 1 Billion marketcap here we come!

Hope I provided something of value today to you. I would still buy xDai at these prices because it's dirt cheap.

Topic: Solution to Ethereum's Scaling problem + Smooth transition to Eth 2.0 (Read 219 times)