Articles on: Blockchain and Tokenomics

Sidechain vs Mainchain

Morpher uses plasma scaling to allow our platform users to have an amazing trading experience without requiring an advanced understanding of blockchain technology.

Mainchain Trading

Advantages: Trading on the Ethereum blockchain provides the user with the robustness of a decentralized protocol. MPH token balances and Virtual Futures are recorded directly on Ethereum. MPH Token can be moved between accounts or to an exchange.

Disadvantages: Trading is significantly slower, as Ethereum has an average block-time of 15 seconds, and a trade needs at least two blocks to complete. Morpher does not provide a graphical user interface for trading on Ethereum. Users need to have a good understanding of how to interact with smart contracts on Ethereum, and pay gas costs (the fees for using the Ethereum network) for every transaction in Ether, Ethereum’s native currency. The transaction throughput is limited on Ethereum, which may lead to high costs or long delays in times of increased network activity.

Sidechain Trading

Advantages: There are no costs for trading on the sidechain and users do not have to own Ethereum to trade. Morpher provides a convenient graphical user interface for interacting with the protocol. Trades settle within a few seconds, and the sidechain can handle a throughput of more than 1000 transactions per second.

Disadvantages: MPH token need to be redeemed from the sidechain to Ethereum mainchain before they can be moved between accounts. If the sidechain ever stops operating it takes 72 hours before users can redeem their token and Virtual Futures on Ethereum.

The sidechain is still a blockchain, and requires user's to pay gas fees using Virtual Ethereum. This Virtual ETH cannot be withdrawn, and is regularly topped-up for users.

Updated on: 14/07/2021

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