POA Chain For Scalability

POA chain can be used as a scalability solution. It uses a bridge (operated by a multisig) to transfer account balances between the main Ethereum chain and a private Ethereum chain ran by a consortium of pre-approved parties. As a result, transactions on the private Ethereum chain can be much cheaper (or even free).

POA chain is likely the most available scalability solution to Livepeer, although it comes with some trade off for decentralization and security. It's unclear what would happen if the private chain was somehow compromised. It will likely result in lost tokens. The multisig bridge is also a point of weakness - it can be DDOS'ed and effectively censoring all transactions to/from the private chain.

The next step here is to do some experiments with a POA chain following the Parity POA chain tutorial.

Follow the discord discussion here.

Start with the linked Parity POA chain tutorial and review the linked Discord discussion. Define and run experiments for a POA chain as a Livepeer scalability solution, documenting the resulting trade-offs around security, decentralization, token loss, and bridge censorship.