Literature Review
Name: Ehasan Ahmed
ID: 203014007
Date of Submission: 02/06/2024
Supervisor
Nafees Mansoor, PhD
Associate Professor
Department of Computer Science & Engineering
University of Liberal Arts
Plasma Go: A Scalable Sidechain Protocol for Flexible Payment Mechanisms in
Blockchain-based Marketplaces
The paper presents Plasma Go, a sidechain payment processing system that does not require a
continuous online presence to execute payments securely. Plasma Go claims far lower processing
requirements than ZK-Rollups. It integrates root chain notarization, off-chain activities, and
pairwise payment channels. In order to mitigate known attacks on earlier sidechain designs, the
process entails creating the Plasma Go mechanism, utilizing effective signature and key
aggregation algorithms, and comparing computational burdens with ZK-Rollups. Offering
significant cost advantages over ZK-Rollup, Plasma Go is positioned as a highly scalable and
affordable payment solution for decentralized apps. However, there are some significant gaps in
the study. These include not having a thorough analysis of potential security flaws, not talking
about implementation issues in the real world, not addressing scalability issues, not having any
empirical validation, and not paying attention to compliance and regulatory issues in
decentralized marketplaces.
Proof-of-Stake Sidechains
The paper provides a formal description of sidechain systems and introduces the idea of side
chains. It covers how to build secure sidechains specifically for proof-of-stake blockchains and
shows how this technique may be extended to other secure proof-of-stake systems. The primary
conclusions include the formalization of sidechains, the creation of a safe sidechain building
mechanism appropriate for proof-of-stake systems, and the illustration of methods for
bidirectionally connecting chains. The article outlines the methodology for defining sidechain
systems, outlining how blockchain protocols arrange application data, defining requirements for
transaction validation, and creating a sidechain certificate that can be integrated with the main
blockchain.
A Study on Blockchain Scalability
The paper discusses the significance of blockchain technology, namely its scalability issues and
offers remedies. It underlines the importance of increased scalability in actual applications.
Methodologically, the research reviews the literature on several scaling strategies, such as
caching, on-chain, off-chain, side-chain, child-chain, inter-chain, and deep learning algorithms,
and compares their performance metrics. It emphasizes the need of scalability in real-world
blockchain systems and recommends additional research in this area. However, the study's
limitations include the need for additional research into aspects such as latency and number of
nodes in order to design efficient solutions. It does not address any other potential constraints or
issues in blockchain technology besides scalability.
Inter Blockchain Communication: A Survey
The article gives an in-depth review of cross-communication solutions, emphasizing the
importance of blockchain interoperability in addressing scalability and connectivity concerns
within the blockchain ecosystem. It emphasizes the importance of interoperability in enabling a
variety of use cases. However, it highlights the lack of a truly interoperable architecture that
meets the needs of the industry ecosystem. Methodologically, the study undertakes a
comprehensive examination of cross-communication solutions, classifying them as sidechain
solutions, blockchain routers, smart contracts, and industrial solutions. It examines the current
state of blockchain interoperability, its problems, and potential future possibilities. The report
underlines the necessity of overcoming current difficulties and recommends focusing on
leveraging smart contracts for compatible protocols between homogeneous blockchains, as well
as investigating sharing apps and smart contracts across multiple blockchain networks.
Proof-of-Work Sidechains
The study provides a trustless framework for proof-of-work sidechains that enables smooth
cross-chain communication without the need for intermediaries. It underlines the need of
crypto-economic collateral in preventing dishonest behavior. Key findings include introducing
this trustless structure for proof-of-work sidechains, enabling adaptable communication between
blockchains, and providing a method for two-way pegged asset transfers. The study describes the
methodological development of this architecture, including the specification of necessary
communication characteristics, the provision of smart contracts for execution, and the asset
transfer process between blockchains. Finally, the study proposes a robust approach for
facilitating secure and transparent cross-chain exchanges, emphasizing the relevance of
bidirectional asset mobility.
Liquid: A Bitcoin Sidechain
The paper talks about the Liquid Network, a Bitcoin sidechain meant to allow traders to settle
more quickly and privately. It makes use of technologies like Confidential Transactions and
Bulletproofs while depending on a Strong Federation for security. Bitcoin is described as a
decentralized digital currency that is resilient and resistant to censorship thanks to blockchain
technology and conservative consensus rules. Methodologically, the article covers the history of
Bitcoin, the concept of sidechains, and how they allow for automatic transfers between the main
blockchain and the sidechain. It examines Bitcoin traders' concerns and highlights the
importance of the Strong Federation in the Liquid platform, as well as technologies such as
Confidential Transactions, Bulletproofs, Vaults, Taproot, Simplicity, and Bulletproofs for
improving transaction privacy and security. However, the paper recognizes limitations in current
cryptographic tools, potential complications caused by asset price volatility, inefficiencies in
existing zero-knowledge proof systems, potential programming errors in smart contract
languages, and current limitations in using zero-knowledge proofs for improved privacy and
mapping efficiency between different systems.
PayPlace: A Scalable Sidechain Protocol for Flexible Payment Mechanisms in
Blockchain-based Marketplaces
The paper introduces PayPlace, a sidechain technology designed exclusively for marketplace
transactions on blockchains. It uses payment channels for consumer payments and enables
off-chain payments to providers, assuring fund security without the requirement for a permanent
online presence. The method operates by committing transaction summaries to the root chain,
which are signed by providers, providing secure fund withdrawal and payment processing.
PayPlace is a revolutionary solution to secure and efficient marketplace payments that addresses
liquidity requirements while protecting the safety of both consumers and providers.
Methodologically, the study introduces and develops the PayPlace system, outlining its
development and presenting evidence to support its qualities.It also discusses PayPlace's
development and evaluation, comparing its cost-effectiveness to ZK Rollup, while
acknowledging limitations such as transaction time intervals, scalability with increasing provider
numbers, consumer withdrawals and challenge periods, unregistered providers and their impact
on safety and data availability, and the trade-off between security and operational convenience
with air-gapped wallets.
Simple and scalable blockchain with privacy.
The paper describes the CoinChain protocol, which provides a scalable and reliable blockchain
system with additional privacy features, including a bigger anonymity set than existing
cryptocurrencies. It provides anonymity for senders, receivers, and transaction amounts,
surpassing the anonymity set of cryptocurrencies like as Monero, Lelatus, and ZeroCoin.
Methodologically, the paper proposes a coin privacy solution based on extending bitcoin P2PKH
and CoinJoin features, determining sender anonymity sets, discussing auditing processes, and
demonstrating how CoinJoin can achieve a higher anonymity set by involving more transacting
parties and coin-IDs. The outcomes include a wider anonymity set, an easy-to-understand
protocol, a prunable blockchain, sender anonymity set calculation, auditing through complete
disclosure, and the ability for users to check transactions and avoid unlawful currency inflation.
The discussion section discusses the CoinChain protocol's challenges, merits, and drawbacks,
with an emphasis on scalability and increased anonymity as compared to competing
cryptocurrencies.
Sidechain technologies in blockchain networks: An examination and state-of-the-art review
The paper examines the most recent breakthroughs in sidechain systems, including architectural
options, applications, constraints, and unresolved challenges. Methodologically, it presents an
overview of sidechain design, covers cutting-edge platforms, and proposes viable answers to
current difficulties. It concentrates on two-way peg design options, weighing their benefits and
drawbacks, and provides a thorough examination of current platforms based on technical use
cases, consensus processes, asset transfer protocols, and constraints. The discussion part provides
insights into design decisions, use cases, consensus methods, and constraints, as well as
identification of open issues and proposed ways to address them. It provides a complete
overview of sidechain technology and recommendations for future study and advancements in
the field.
Spacechain: A Three-Dimensional Blockchain Architecture for IoT Security ADVANCES
IN SECURITY AND PRIVACY IN EMERGING WIRELESS NETWORKS
The paper explores Spacechain, a revolutionary 3-dimensional blockchain architecture designed
to tackle security vulnerabilities, scalability limitations, and boost network performance
specifically for the Internet of Things (IoT) realm. Spacechain positions itself as a secure and
high-performance system, employing the innovative 3D-GHOST consensus mechanism to
strengthen both security and network efficiency within IoT networks. The researchers
meticulously crafted a Spacechain prototype using Python 3 and subjected it to rigorous testing
on a network of geographically distributed virtual machines. This testing encompassed various
technical aspects, including withstanding security threats like self-serving mining attempts and
DDoS attacks, analyzing network throughput, and assessing scalability. The paper highlights the
limitations of current IoT technologies and the potential of blockchain to address security
concerns. It then unveils Spacechain as a solution specifically tailored to enhance security and
network performance within the dynamic world of IoT. While the initial results are promising,
the researchers acknowledge areas for further security improvement, paving the way for future
advancements in this exciting new technology.
ZyConChain: A scalable blockchain for general applications
This research paper introduces ZyConChain, a scalable blockchain protocol designed for various
applications. It tackles limitations like low throughput and high latency by introducing three
distinct block types, each potentially with its own consensus mechanism. ZyConChain leverages
the Zyzzyva consensus algorithm, known for its performance improvements over previous
Byzantine Fault Tolerance (BFT) protocols, for specific block types like sideBlocks.
Additionally, it incorporates sharding, a technique for dividing the blockchain into partitions, to
enhance scalability. To handle transactions across these partitions, ZyConChain utilizes parallel
state chains, facilitating efficient communication and data exchange. By combining these
technical advancements, ZyConChain aims to outperform existing sharding-based protocols and
offers a promising solution for scaling blockchain technology across various sectors.
Sidechains & Interoperability
This research discusses the intricate issue of blockchain interoperability, a major hurdle
hindering widespread adoption of blockchain technology. The paper highlights the growing
number of blockchains and the critical need for them to communicate seamlessly. While various
strategies and proposed solutions exist, the authors point out the limitations of current high-level
approaches. To address this, the research methodology reviewed existing cross-chain
communication methods, analyzed information from diverse sources, and ultimately proposes a
protocol for transferring assets across different blockchains. The paper acknowledges the
complexity of interoperability and potential challenges, such as overlooking advancements in the
field, keeping knowledge current, and navigating token-related issues like issuance, lifespans,
and balances. It also discusses the importance of selecting appropriate blockchains for
interoperability proposals, especially considering limitations in smart contract functionality. By
outlining these challenges and proposing a new protocol, the research paves the way for further
exploration and development of effective interoperability solutions in the ever-evolving
blockchain ecosystem.
Blockchain cross-chain protocol and platform research and development
This study analyzes the issues of integrating multiple blockchain networks, concentrating on
cross-chain technologies. It investigates current constraints and suggests a better protocol based
on atomic swaps and relays. The team successfully tested a high-performance infrastructure that
enables safe cross-chain transfers between different blockchains. Their solution makes use of
atomic swaps, which allow assets to be swapped directly between users without the need for
middlemen, as well as relay technology, which allows blockchains to communicate with one
another. While the testing on hundreds of servers produced encouraging results in terms of
speed, latency, and security, the authors note the limits of current cross-chain technology, such as
possible security problems associated with notary processes and sidechains. They also
acknowledge the need for more research in areas like as trusted authentication and network
optimization, which will pave the way for future advances in seamless blockchain
interconnection.
A Sidechain-Based Decentralized Authentication Scheme via Optimized Two-Way Peg
Protocol for Smart Community
This research addresses challenges in device authentication for smart communities by proposing
a novel sidechain structure with an optimized two-way peg protocol. This method utilizes private
blockchains for local device authentication, while a separate mainchain block facilitates
information sharing across different systems. To ensure data integrity and prevent worthless
information injection, the researchers introduce a two-way peg protocol that dynamically
evaluates device trustworthiness based on factors like authentication history. Simulations
demonstrate significant improvements in efficiency and reduced storage consumption compared
to existing methods, particularly in authentication speed and gateway storage burden. The paper
acknowledges potential drawbacks like communication delays and gateway workload, but
emphasizes the practicality and feasibility of this sidechain approach, paving the way for
enhanced security and efficiency in smart community device authentication.
An overview on cross-chain: Mechanism, platforms, challenges and advances
This article discusses cross-chain technology, a new issue in the blockchain sector. It looks at
how cross-chain bridges may connect distinct blockchains, allowing for smooth communication
and asset exchange. This interoperability and scalability increase the value of individual
blockchains and benefit the overall health of the blockchain ecosystem. The article presents a
complete review of cross-chain technology, including its historical history, current obstacles, and
future advantages. It also emphasizes continuous efforts to standardize, secure data transfer,
governance, security architecture, and investigate alternative project implementation options.
While acknowledging the early stages of cross-chain technology and the need to address
challenges such as a lack of a universal standard and security vulnerabilities, the paper points out
the importance of continuous innovation in communication protocols and data interfaces, which
will pave the way for future blockchain technologies. This technology has enormous potential to
unlock the full power of blockchain networks while also supporting a wide range of applications
in a multi-chain future.
A Survey on Cross-chain Technologies
The study examines the improvements and problems of integrating various blockchain systems,
which frequently operate as isolated information islands. To address this, the article offers a
Blockchain Interoperability Architecture (BIA), which is intended to examine and identify
possible dangers and concerns with security, privacy, and efficacy in cross-chain activities. By
defining a set of assessment criteria, the authors present a thorough overview of existing
cross-chain technologies, examining their benefits and drawbacks in depth. They classify these
technologies based on the methodologies used and the goals for which they are designed,
providing information on how each scheme performs in comparison to the stated criteria. The
poll also identifies many unresolved difficulties that impede widespread implementation of
cross-chain solutions, including vulnerability to reorganization attacks, fairness hurdles, privacy
concerns, and inefficiencies in throughput and latency. Finally, the authors offer future research
approaches for improving the security, privacy, and general performance of cross-chain
technology, with the goal of paving the way for more secure and interoperable blockchain
systems.
Atomic Crosschain Transactions for Ethereum Private Sidechains
The paper talks about a protocol enabling synchronous and atomic inter-contract and
inter-blockchain function calls across permissioned Ethereum blockchains. Unlike existing
methods like Hash Time Locked Contracts, relay chains, or trusted intermediaries, this protocol
uses threshold signatures, coordination contracts, and a call tree commitment scheme. This
ensures that if one part of a transaction fails, the entire transaction is discarded, maintaining
atomicity. The technology is integrated into Ethereum Client software to simplify the complexity
for developers. However, this crosschain functionality reduces performance compared to
standard transactions, as evidenced by scenarios like Trade-Finance and Supply Chain with
Provenance. Each blockchain involved in a crosschain transaction must access a Coordination
Blockchain, which manages the transaction state and acts as a timeout reference. While primarily
targeted at Ethereum private sidechains, the protocol's approach could extend to other blockchain
platforms, given appropriate client modifications. This research highlights the balance between
achieving atomic crosschain transactions and the performance trade-offs inherent in such
complex operations.
Cross-chain between a Parent Chain and Multiple Side Chains
The research introduces a cross-chain technique that improves interoperability between a core
blockchain (Token Chain) and many sub blockchains (Side Chains). This is primarily intended to
improve the performance and scalability of blockchain systems in applications such as the
Internet of Things. The Token Chain, a public blockchain, creates the primary tokens that may be
exchanged and used across the Side networks, which are consortium networks that handle
specialized activities. The core innovation is "witness nodes," which are nodes designed to
manage safe token swaps between the Token Chain and Side Chains.
The framework splits the Token Chain and Side Chain consensus methods, letting each to run
independently while yet supporting token trade. This strategy ensures that the primary tokens
retain their economic worth while facilitating transactions on Side Chains. The authors
emphasize that this approach is flexible to multiple consensus methods and is not constrained by
the number of Side Chains or the availability of native gas (a strategy for preventing transaction
flooding).
The major findings show that this design can handle a wide range of capacity demands,
particularly for applications requiring high throughput and low latency. Additionally, the
proposed method guarantees that Side Chains do not communicate directly with one another but
rather are linked via the Token Chain, which improves security and scalability.
However, the paper acknowledges a few problems. The design is highly dependent on the
integrity and dependability of the Witness nodes, which might become a source of risk.
Furthermore, the implementation details and performance metrics of this cross-chain technique
in real-world settings have not been properly investigated, raising concerns about its feasibility
and efficiency in large-scale deployments.
References
Cao, L., & Song, B. (2021). Blockchain cross-chain protocol and platform research and
development. Proceedings - 2021 International Conference on Electronics, Circuits and
Information Engineering, ECIE 2021, 265–269.
https://doi.org/10.1109/ECIE52353.2021.00063
Chan, W. K., Chin, J. J., & Goh, V. T. (2021). Simple and scalable blockchain with privacy.
Journal of Information Security and Applications, 58(June 2020), 102700.
https://doi.org/10.1016/j.jisa.2020.102700
Du, M., Wang, K., Liu, Y., Qian, K., Sun, Y., Xu, W., & Guo, S. (2020). Spacechain: A
three-dimensional blockchain architecture for IoT security. IEEE Wireless
Communications, 27(3), 38–45. https://doi.org/10.1109/MWC.001.1900466
Gazi, P., Kiayias, A., & Zindros, D. (2019). Proof-of-stake sidechains. Proceedings - IEEE
Symposium on Security and Privacy, 2019-May, 139–156.
https://doi.org/10.1109/SP.2019.00040
Harishankar, M., Akestoridis, D.-G., Iyer, S. V., Laszka, A., Joe-Wong, C., & Tague, P. (2020a).
PayPlace: Secure and Flexible Operator-Mediated Payments in Blockchain
Marketplaces at Scale. 1–15.
Harishankar, M., Akestoridis, D.-G., Iyer, S. V., Laszka, A., Joe-Wong, C., & Tague, P. (2020c).
Plasma Go: A Scalable Sidechain Protocol for Flexible Payment Mechanisms in
Blockchain-based Marketplaces. arXiv Preprint arXiv:2003.06197.
Johnson, S., Robinson, P., & Brainard, J. (2019). Sidechains and interoperability.
Kiayias, A., & Zindros, D. (2020). Proof-of-Work Sidechains. 3, 21–34.
Li, M., Tang, H., Hussein, A. R., & Wang, X. (2020). A sidechain-based decentralized
authentication scheme via optimized two-way peg protocol for smart community. IEEE
Open Journal of the Communications Society, 1(December 2019), 282–292.
https://doi.org/10.1109/OJCOMS.2020.2972742
Nick, J., Poelstra, A., & Sanders, G. (2020). Liquid: A Bitcoin Sidechain.
Ou, W., Huang, S., Zheng, J., Zhang, Q., Zeng, G., & Han, W. (2022). An overview on
cross-chain: Mechanism, platforms, challenges and advances. Computer Networks,
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CSE 4098A
Name of the student & ID: Ehasan Ahmed (203014007)
Project Title: Undecided (Blockchain)
Project Start Date: April 24, 2024
Team members: Nur-A-Alam Azmi (203014006), Md. Nur Hasan Masum (203014011)
Supervisor: Nafees Mansoor, PhD
Week
Date (From - To)
Works Done (Previous Week)
1
24/4/2024 - 27/4/2024
Started researching blockchain
technologies and its current
implementations. Started to learn
the fundamentals of blockchain
2
28/4/2024 - 4/5/2024
Set up a click-up project
environment to coordinate work
between the team members.
Started to gather research papers
from various sources such as
IEEEXplore and many more.
3
5/5/2024 - 11/5/2024
Read research papers about
blockchain scalability.
Researched about existing
blockchain scalability options
available and gathered research
papers about it.
4
12/5/2024 - 18/5/2024
Reviewed the previously gathered
research papers on Blockchain
scalability. Parallely, studied
about the existing technologies to
understand them thoroughly
5
19/5/2024 - 25/5/2024
Gathered and reviewed more
research papers about blockchain
scalability options.
6
26/5/2024 - 01/6/2024
Gathered papers related to
blockchains consisting of
blockchains. Reviewed them.
Written short summary of the
previously reviewed papers.
Submitted them to the supervisor
for further review
Supervisor’s Evaluation
Remarks