A Brief Introduction to Blockchain Stargates

Scaling without gimmicks

The original Stargate

From 1997–2007 the series Stargate SG-1 chronicled the experiences of a team of adventurers who traveled through an ancient worlds with a technology known as a Stargate. It was a stable wormhole that allowed anyone who entered the ability to travel to a different planet and return home once their adventure was over. It would have been infeasible for everyone to live on Earth due to logistical constraints and our limited resources.

What this has to do with scaling

The year is 2017. We have developed blockchains that offer the promise of a limitless decentralized future. However many developers seemed to have missed the asterisk the marketing people neglect to mention on public chains. 10–12 tx a second, globally. This is currently a restraint imposed by physics and design mechanics. Uncle rates spin out of control if we push it too far. So for those that came for a bad approximation of math:

For reference

If your app needs to make more writes than that, or even near to that, YOU DO NOT NEED TO BE RUNNING ON THE PUBLIC CHAIN! Those transactions are for a global network, not your personal application. I do understand the common arguments: “it’s a free market let the market decide” and “fees will balance it out” or “everything needs a token and a contract” or even “but scaling and PoS and sharding and <whatever> will eventually come” These things are not true. They were marketing lies. Its easiest to accept this now. Will scaling happen at a realistic pace on the main chains, yes. Will it ever scale to the level where millions of dapps or twitter level data will be stored and transmitted on one chain, no. And it shouldn’t.

The public chains are a community resource; think national park, public lake, the beach. They exist for the everyone. Can you fish on a public lake, yes! Can you dragnet a lake for your business, no. This isn’t a blockchain thing, it is a corporate citizenship thing. It is a common problem in the world where businesses exploit public resources for capital gains. It is up to companies to be good corporate citizens on the block chain and minimize their foot print.

Contracts are Centralized

To get this out of the way. Tokens are centralized. A company owns the contract and creates the application and manages the marketing and product. If you were to really use a token (trading doesn’t count) it would cost you twice as much in gas as a normal transaction because you would need to send a tx to the token which will trigger another transaction to whatever dapp exists. They are a gimmick. Hundreds of thousands of real dollars have been lost on them because of a convoluted design in the original ERC. Several hundreds of million have been lost on other poorly written contracts. These thing are not the fault of the system, and there is no reason to ever hardfork to fix such naive problems. Humans will always write flawed code. Incidentally, if these contracts were run on side chains, the chain could be frozen and everyone made whole on the main chain.

Tying it all together

Companies want users to give them money to use their dapp. If they are a good business, they want everyone to use their app. They would love for others to build apps that can interact with their app and give it more value. They don’t want to deal with outside parties if the need to upgrade their application or be held criminally liable when they freeze everyone’s fund with a flawed code and are unable to fix the issue. Users are already familiar with companies that operate under this model. Services like Coinbase and Blockchain.info allow users to send in coins, interact within their ecosystem without fees, and the leave their world when you chose too. However, neither of them allow for auditing or transparency that a side chain could offer.

In SG-1 terms, every dapp wants to be its own planet, but connected to everyone else. The company can set transaction fees, exchange rates, launch multiple dapps for their blockchain platform and still have access to a public chain. They can also do cool experimental stuff like zksnarks, starks, or anything they feel brings value to their system with out jeopardizing the main public chain.