Modular Blockchains, can they can solve all of Ethereum’s problems?

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(Edited)

In order to understand how Modular Blockchains work and solve problems, you must review the problems.

Ethereum, is a blockchain, the birthplace of Smart Contracts, and the birthplace decentralized finance. Ethereum is the home blockchain for approximately 50 billion dollars of total value locked in decentralized finance projects.

What core functions does the Ethereum blockchain do?

Transactions
Data Storage of transactions, and
Consensus or security.

What problems does Ethereum have?

Transaction speed is to slow
Transaction fees are to high.

What solutions are proposed to Ethereums problems?

Linear scaling via a fundamental change in the way the Ethereum performs one of it’s core functions Consensus.
(Proof of work to Proof of Stake.)

What are the two biggest problems with the proposed solution: Changing consensus mechanism? Speed and Security.

Speed
  • Changing Consensus mechanism allows Ethereum to scale or increase it’s transaction speed in a linear fashion, but the problem is increasing at an exponential fashion.
  • Linear scaling increases transaction speed by 2x, 4x, 8x, 16x and 64x.
  • The problem however is increasing at a exponential rate. So it increases by a factor of 10, then 100, 1000 and 10,000.
  • The improved transaction speed afforded by changing from Ethereum’s current consensus mechanism to it’s future consensus mechanism is already a failed effort because mathematically it can’t keep up with the problem.
Security:

Changing consensus mechanism from Proof of Work to Proof of Stake means the blockchain is less secure. Blockchain education teaches us that Blockchain security is directly related to the number of node operators. Blockchains which use the Proof of work consensus mechanism traditionally have the most, so they provides more security then Blockchains using the Proof of Stake consensus method.

But modular Blockchains solve the linear versus exponential transaction speed problem and the security problem.

  • Modular block chains allow exponential growth in transaction speed, 10, 100, 1000.
  • Modular Blockchains allow Ethereum to keep it’s current method of Consensus, thus it’s current method of insuring security.
  • That’s it, problems solved.
  • All can be good in the Crypto Universe.

How?

  • Modular Blockchains, allow you to perform the three essential blockchain functions on different Blockchains.
  • So a newer, faster blockchain with speed much faster then Ethereum could perform the transactions, while data storage and consensus, otherwise known as security, could be done on Ethereum.
  • Because transactions could be done on more then one additional blockchain, the scaling for more transaction capacity is no longer linear, it’s exponential.

What does this really mean?

  • It means transaction speed would no longer be limited by the ability to improve it in a linear fashion: 2, 4, 8, 16,… 64.

  • It means transaction speed could increase in a exponential fashion, 10, 100, 1000

  • It means the solution can increase at the same speed, or potentially greater, then the problem.

  • It means that security problems created by changing the consensus mechanism don’t occur, because you don’t change the consensus mechanism.

  • It means that slow transaction times and high transaction fees on Ethereum could become a problem of the past.

Last Words

I think Modular Blockchains are an exciting solution, to a seemingly insurmountable problem. The math doesn’t lie.

I think that’s an amazing concept.

What do you think?

The end..for now.

1B929A84F1ED463C86940C0426DD1A10.pngsource

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22 comments
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It's interesting idea, I do find it rather fascinating all the different ways people keep developing and pushing the underlying crypto technology. personally I feel the delegated proof of state model, the one that we use on hive, makes a lot of sense as its low power consumption, and has no gas cost. But I'm sure it is probably even better solutions out there, like the one you're presenting. 👍

Dropping you some hot !PIZZA and !LUV on this post!

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Thank you for the Pizza, and the Luv. I agree that Delegated Proof of Stake is a good consensus model, and perfect for Social Media, which needs fast, free transactions and rewards. I think there are different solutions for different implementations.

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it is true, I don't think there is any model that is best, but as you said different solutions for different implementations. 👍

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(Edited)

I think this post doesn't make any sense unless you explain what's a modular blockchain and give and example of a project actually building up one of them, if there is any.

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Hi @mephistophenes

A modular blockchain is a concept for using existing blockchains in a new way. The Bitcoin side chain Lightning uses the cryptocurrency token Bitcoin, but transactions occur on Lightning, while settlement and data storage occur on the main Bitcoin blockchain.

This is an example of Modular Blockchain activity.
This allows games to take advantage of the speed of Lightning and the low transaction cost of lightning.
Lightning was created for this purpose. Other blockchains could also be created to duplicate this purpose. These chains could perform like Lightning, transactions and lower fees, but settlement and storage of data occurring on the main chain.

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Ok, thank you for the explanation. I thought these were called "sidechains".

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Your welcome, and you are right, these are called “side-chains”. I think modular Blockchains are theoretical right now, but I will look for an existing set-up.

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It's a good approach but something that is probably not feasible on the big chains without enough time. First off to make the changes, it requires a majority of the miners/people to agree and then change the basic structure of the chain. So getting the votes will be tough and it should be done at a earlier step before mainstream adoption.

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All change is resisted to some degree, hopefully mutually beneficial change will occur, as you say in time.

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Hi @shortsegments

As a Student of Blockchains, I find this post, and the concepts discussed fascinating. Your use of descriptor vowels is a little loose here, but the focus of the article: innovation in blockchain function is razor sharp. One of the limitations of innovation is creativity. We can become so entrenched in the rules of the constructs, as to have no brainpower left to innovate, so conceptual writers are very helpful. Even those who don't completely understand technology can help promote its evolution by asking questions about why and how. Your article nicely asks us to imagine how technology could be used differently than it is, to achieve certain goals. This is the distillation of creativity and innovation. I also like how you focus on the three core functions. Blockchains are complicated constructs, open closed, permissioned, nonpermissioned, and variants in between. The plethora of copy cat forks leads people to think that is the norm, but there are many novel projects out there. The cryptoverse is vast. It is this vastness that sparks much disagreement. Many interpret the world through their narrow lens. We all only have so much capacity for absorption of new data and surely we are also limited by time constraints. It is a fascinatingly big world out there. I am reading the comments here and learning much more just today. Amazing.

@defigeek

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Hi @defigeek
Thank you for your comment and it is true that modular blockchains are a great example of creativity and innovation. I am glad you appreciated the post, and also happy the comments also promote your education and understanding, as this is a good function of social media.
Take Care.

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