Articles on: Blockchain and Tokenomics

Sidechain & Plasma Scaling

As of June 2020, the Ethereum blockchain can manage no more than 20 transactions per second. That is nowhere nearly sufficient for a protocol like Morpher, aiming to become the world’s biggest and most active trading platform.

To enable a throughput of several thousand transactions per second while keeping transactions free of charge, the Morpher Protocol is deployed both on Ethereum and on a proof-of-authority sidechain hosted by Morpher.

Sidechain RPC Endpoint:

As suggested by Vitalik Buterin and Joseph Poon in their paper Plasma: Scalable Autonomous Smart Contracts, the sidechain is linked with Ethereum via the root hash of its Merkle Tree. The state of the sidechain, i.e. all its balances and positions are hashed and merkelized. The root hash of the sidechain Merkle Tree is updated on the Ethereum blockchain in periodic intervals (initially: 1 hour). This way there is cryptographic proof of all balances, token, and transactions of the sidechain on Ethereum. Should the sidechain ever break down or seize to operate for whatever reason, all MPH token and Virtual Futures held there can be recovered on Ethereum.

Users can choose whether to interact with the protocol directly on Ethereum or via Morpher’s sidechain. Both methods come with their own advantages and disadvantages.

Updated on: 14/07/2021

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