We can actually scale asset transfer transactions on ethereum by a huge amount, without using layer 2’s that introduce liveness assumptions (eg. channels, plasma), by using ZK-SNARKs to mass-validate transactions. Here is how we do it. There are two classes of user: (i) transactor, and (ii) relayer. A relayer takes a set of operations from transactors, and combines them all into a transaction and makes a ZK-SNARK to prove the validity, and publishes the ZK-SNARK and the transaction data in ...| Ethereum Research
Thanks to @Mikerah for help revising this. Merged Consensus The high-level goal of merged consensus is to provide an objective deterministic permissionless consensus protocol that can be used for side chains, and runs entirely on-chain. It is an alternative to designs like Proof-of-Stake consensus for side chains, but unlike stake-limited consensus protocols it does not require a separate token, a separate set of block producers, a bunch of strong assumptions, etc. Preambles This spec assumes...| Ethereum Research