The MOAC Story Part XIII: The Difference Between Side Chains and Microchains

Let’s talk about side chains like Bitcoin’s Lightning network and Ethereum’s Raiden network. These are sidechains. What does that mean? This means that the main chain is working on its own thing while the side chain is processing things which have nothing to do with the main chain. It typically only needs to sync with the main chain at predetermined intervals. The problem is that synchronizing can get messy when you have so many side chains with transactions happening between them.

Microchains can be defined as a chain that is differentiated logically, not physically, in a hierarchal structure. This means that the state of different microchains can be synchronized in the same physical chain. But this must adopt a layered architecture and support logical fragmentation, otherwise you can’t turn a single blockchain into multiple blockchains. In addition, these microchains can also require different consensus mechanisms. Ethereum currently only has a single flat layer, and of course it doesn’t support sharding.

The MOAC Story Part XIV: Sharding and Speed

When you can’t shard, the processing speed of your entire network depends on the processing speed of a single node. And it doesn’t become more powerful as more and more nodes join; rather, this results in network congestion, making network speeds slower. When you adopt sharding, so long as the number of nodes isn’t too low, the Byzantine fault tolerance rate won’t be much different if you have 50 nodes or a hundred.

Now, the more nodes that participate, the more shards you can create. And the more shards you have, the more smart contracts your network will be able to process simultaneously, resulting in greater processing power and speeds. There are currently only a few blockchain platforms capable of sharding, and we are in the lead.

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