Onchain and offchain?

[3piecechickendinner]

When they say Ethereum can not handle x amount of DaPPs onchain and they need offchain solutions in order to scale, does this mean running another private chain in conjunction with Ethereum like Fabric?

[~Bitcoin~]

Don't have deep knowledge on how offchain dapps will work in ethereum network but to understand difference between offchain and onchain transaction you can take coinbase as example.

All free bitcoin transactions we have in coinbase and xapo are offchain transactions while bitcoin transactions from one address to another address via other wallets is example of onchain transactions.

[GreenBits]

When they say Ethereum can not handle x amount of DaPPs onchain and they need offchain solutions in order to scale, does this mean running another private chain in conjunction with Ethereum like Fabric?

there are programmatic means of off chain transactions being added into the ETH network. state channels are the most promising, imo.

State Channels are a design pattern in which signed messages representing transactions
are exchanged between two parties. Any party can choose at any time to broadcast the last
message to the blockchain, updating it to a state representative of the sum of all exchanges
between the two parties.
State channels are an important technique for allowing some blockchain operations to be
conducted off of the blockchain, while retaining or even improving the underlying security
guarantees that a blockchain offers.

Raiden and Plasma also address this.

[NorrisK]

Don't have deep knowledge on how offchain dapps will work in ethereum network but to understand difference between offchain and onchain transaction you can take coinbase as example.

All free bitcoin transactions we have in coinbase and xapo are offchain transactions while bitcoin transactions from one address to another address via other wallets is example of onchain transactions.

Does that mean off chain transaction always require a trusted third party? Or is it possible to get around that by something like a smart contract?

[3piecechickendinner]

Don't have deep knowledge on how offchain dapps will work in ethereum network but to understand difference between offchain and onchain transaction you can take coinbase as example.

All free bitcoin transactions we have in coinbase and xapo are offchain transactions while bitcoin transactions from one address to another address via other wallets is example of onchain transactions.

What free bitcoin transactions take place in coinbase and xapo?

[rainbow169]

Don't have deep knowledge on how offchain dapps will work in ethereum network but to understand difference between offchain and onchain transaction you can take coinbase as example.

All free bitcoin transactions we have in coinbase and xapo are offchain transactions while bitcoin transactions from one address to another address via other wallets is example of onchain transactions.

Does that mean off chain transaction always require a trusted third party? Or is it possible to get around that by something like a smart contract?

A offchain solution like lightening may lead to centralised hubs for such solution to make sense, e.g. if we go to supermarket and the transcations are broadcast to the network once a month while the state channel is open between us and supermarket, it will probably save a lot transaction fee and for making occasional chewing gum transactions using bitcoin possible. It however may lead to that supermarket, coffeeshops become the central hub in the lightening solution. It's interesting to see that centralisation may be part of the solution to a decentralised scaling issue, not only for the off chain solution.  Even for on-chain high scaling solution like EOS, it rely on the central 51 block producers to provide the performance needed.

[3piecechickendinner]

When they say Ethereum can not handle x amount of DaPPs onchain and they need offchain solutions in order to scale, does this mean running another private chain in conjunction with Ethereum like Fabric?

there are programmatic means of off chain transactions being added into the ETH network. state channels are the most promising, imo.

State Channels are a design pattern in which signed messages representing transactions
are exchanged between two parties. Any party can choose at any time to broadcast the last
message to the blockchain, updating it to a state representative of the sum of all exchanges
between the two parties.
State channels are an important technique for allowing some blockchain operations to be
conducted off of the blockchain, while retaining or even improving the underlying security
guarantees that a blockchain offers.

Raiden and Plasma also address this.

Thanks! Ive read Raiden Networks 101 twice now and really need to read it 2 more times to fully understand how the Lifecycle of a Raiden channel works before I can even start asking more questions!