Reposting after was mistakenly removed by mods (since resolved - Thanks)submitted by xSeq22x to CryptoCurrency [link] [comments]
A frequent question I see being asked is how Cosmos, Polkadot and Avalanche compare? Whilst there are similarities there are also a lot of differences. This article is not intended to be an extensive in-depth list, but rather an overview based on some of the criteria that I feel are most important.
For better formatting see https://medium.com/ava-hub/comparison-between-avalanche-cosmos-and-polkadot-a2a98f46c03b
CosmosCosmos is a heterogeneous network of many independent parallel blockchains, each powered by classical BFT consensus algorithms like Tendermint. Developers can easily build custom application specific blockchains, called Zones, through the Cosmos SDK framework. These Zones connect to Hubs, which are specifically designed to connect zones together.
The vision of Cosmos is to have thousands of Zones and Hubs that are Interoperable through the Inter-Blockchain Communication Protocol (IBC). Cosmos can also connect to other systems through peg zones, which are specifically designed zones that each are custom made to interact with another ecosystem such as Ethereum and Bitcoin. Cosmos does not use Sharding with each Zone and Hub being sovereign with their own validator set.
For a more in-depth look at Cosmos and provide more reference to points made in this article, please see my three part series — Part One, Part Two, Part Three
(There's a youtube video with a quick video overview of Cosmos on the medium article - https://medium.com/ava-hub/comparison-between-avalanche-cosmos-and-polkadot-a2a98f46c03b)
PolkadotPolkadot is a heterogeneous blockchain protocol that connects multiple specialised blockchains into one unified network. It achieves scalability through a sharding infrastructure with multiple blockchains running in parallel, called parachains, that connect to a central chain called the Relay Chain. Developers can easily build custom application specific parachains through the Substrate development framework.
The relay chain validates the state transition of connected parachains, providing shared state across the entire ecosystem. If the Relay Chain must revert for any reason, then all of the parachains would also revert. This is to ensure that the validity of the entire system can persist, and no individual part is corruptible. The shared state makes it so that the trust assumptions when using parachains are only those of the Relay Chain validator set, and no other. Interoperability is enabled between parachains through Cross-Chain Message Passing (XCMP) protocol and is also possible to connect to other systems through bridges, which are specifically designed parachains or parathreads that each are custom made to interact with another ecosystem such as Ethereum and Bitcoin. The hope is to have 100 parachains connect to the relay chain.
For a more in-depth look at Polkadot and provide more reference to points made in this article, please see my three part series — Part One, Part Two, Part Three
(There's a youtube video with a quick video overview of Polkadot on the medium article - https://medium.com/ava-hub/comparison-between-avalanche-cosmos-and-polkadot-a2a98f46c03b)
AvalancheAvalanche is a platform of platforms, ultimately consisting of thousands of subnets to form a heterogeneous interoperable network of many blockchains, that takes advantage of the revolutionary Avalanche Consensus protocols to provide a secure, globally distributed, interoperable and trustless framework offering unprecedented decentralisation whilst being able to comply with regulatory requirements.
Avalanche allows anyone to create their own tailor-made application specific blockchains, supporting multiple custom virtual machines such as EVM and WASM and written in popular languages like Go (with others coming in the future) rather than lightly used, poorly-understood languages like Solidity. This virtual machine can then be deployed on a custom blockchain network, called a subnet, which consist of a dynamic set of validators working together to achieve consensus on the state of a set of many blockchains where complex rulesets can be configured to meet regulatory compliance.
Avalanche was built with serving financial markets in mind. It has native support for easily creating and trading digital smart assets with complex custom rule sets that define how the asset is handled and traded to ensure regulatory compliance can be met. Interoperability is enabled between blockchains within a subnet as well as between subnets. Like Cosmos and Polkadot, Avalanche is also able to connect to other systems through bridges, through custom virtual machines made to interact with another ecosystem such as Ethereum and Bitcoin.
For a more in-depth look at Avalanche and provide more reference to points made in this article, please see here and here
(There's a youtube video with a quick video overview of Avalanche on the medium article - https://medium.com/ava-hub/comparison-between-avalanche-cosmos-and-polkadot-a2a98f46c03b)
Comparison between Cosmos, Polkadot and AvalancheA frequent question I see being asked is how Cosmos, Polkadot and Avalanche compare? Whilst there are similarities there are also a lot of differences. This article is not intended to be an extensive in-depth list, but rather an overview based on some of the criteria that I feel are most important. For a more in-depth view I recommend reading the articles for each of the projects linked above and coming to your own conclusions. I want to stress that it’s not a case of one platform being the killer of all other platforms, far from it. There won’t be one platform to rule them all, and too often the tribalism has plagued this space. Blockchains are going to completely revolutionise most industries and have a profound effect on the world we know today. It’s still very early in this space with most adoption limited to speculation and trading mainly due to the limitations of Blockchain and current iteration of Ethereum, which all three of these platforms hope to address. For those who just want a quick summary see the image at the bottom of the article. With that said let’s have a look
CosmosEach Zone and Hub in Cosmos is capable of up to around 1000 transactions per second with bandwidth being the bottleneck in consensus. Cosmos aims to have thousands of Zones and Hubs all connected through IBC. There is no limit on the number of Zones / Hubs that can be created
PolkadotParachains in Polkadot are also capable of up to around 1500 transactions per second. A portion of the parachain slots on the Relay Chain will be designated as part of the parathread pool, the performance of a parachain is split between many parathreads offering lower performance and compete amongst themselves in a per-block auction to have their transactions included in the next relay chain block. The number of parachains is limited by the number of validators on the relay chain, they hope to be able to achieve 100 parachains.
AvalancheAvalanche is capable of around 4500 transactions per second per subnet, this is based on modest hardware requirements to ensure maximum decentralisation of just 2 CPU cores and 4 GB of Memory and with a validator size of over 2,000 nodes. Performance is CPU-bound and if higher performance is required then more specialised subnets can be created with higher minimum requirements to be able to achieve 10,000 tps+ in a subnet. Avalanche aims to have thousands of subnets (each with multiple virtual machines / blockchains) all interoperable with each other. There is no limit on the number of Subnets that can be created.
ResultsAll three platforms offer vastly superior performance to the likes of Bitcoin and Ethereum 1.0. Avalanche with its higher transactions per second, no limit on the number of subnets / blockchains that can be created and the consensus can scale to potentially millions of validators all participating in consensus scores ✅✅✅. Polkadot claims to offer more tps than cosmos, but is limited to the number of parachains (around 100) whereas with Cosmos there is no limit on the number of hubs / zones that can be created. Cosmos is limited to a fairly small validator size of around 200 before performance degrades whereas Polkadot hopes to be able to reach 1000 validators in the relay chain (albeit only a small number of validators are assigned to each parachain). Thus Cosmos and Polkadot scores ✅✅
CosmosTendermint consensus is limited to around 200 validators before performance starts to degrade. Whilst there is the Cosmos Hub it is one of many hubs in the network and there is no central hub or limit on the number of zones / hubs that can be created.
PolkadotPolkadot has 1000 validators in the relay chain and these are split up into a small number that validate each parachain (minimum of 14). The relay chain is a central point of failure as all parachains connect to it and the number of parachains is limited depending on the number of validators (they hope to achieve 100 parachains). Due to the limited number of parachain slots available, significant sums of DOT will need to be purchased to win an auction to lease the slot for up to 24 months at a time. Thus likely to lead to only those with enough funds to secure a parachain slot. Parathreads are however an alternative for those that require less and more varied performance for those that can’t secure a parachain slot.
AvalancheAvalanche consensus scan scale to tens of thousands of validators, even potentially millions of validators all participating in consensus through repeated sub-sampling. The more validators, the faster the network becomes as the load is split between them. There are modest hardware requirements so anyone can run a node and there is no limit on the number of subnets / virtual machines that can be created.
ResultsAvalanche offers unparalleled decentralisation using its revolutionary consensus protocols that can scale to millions of validators all participating in consensus at the same time. There is no limit to the number of subnets and virtual machines that can be created, and they can be created by anyone for a small fee, it scores ✅✅✅. Cosmos is limited to 200 validators but no limit on the number of zones / hubs that can be created, which anyone can create and scores ✅✅. Polkadot hopes to accommodate 1000 validators in the relay chain (albeit these are split amongst each of the parachains). The number of parachains is limited and maybe cost prohibitive for many and the relay chain is a ultimately a single point of failure. Whilst definitely not saying it’s centralised and it is more decentralised than many others, just in comparison between the three, it scores ✅
CosmosTendermint consensus used in Cosmos reaches finality within 6 seconds. Cosmos consists of many Zones and Hubs that connect to each other. Communication between 2 zones could pass through many hubs along the way, thus also can contribute to latency times depending on the path taken as explained in part two of the articles on Cosmos. It doesn’t need to wait for an extended period of time with risk of rollbacks.
PolkadotPolkadot provides a Hybrid consensus protocol consisting of Block producing protocol, BABE, and then a finality gadget called GRANDPA that works to agree on a chain, out of many possible forks, by following some simpler fork choice rule. Rather than voting on every block, instead it reaches agreements on chains. As soon as more than 2/3 of validators attest to a chain containing a certain block, all blocks leading up to that one are finalized at once.
If an invalid block is detected after it has been finalised then the relay chain would need to be reverted along with every parachain. This is particularly important when connecting to external blockchains as those don’t share the state of the relay chain and thus can’t be rolled back. The longer the time period, the more secure the network is, as there is more time for additional checks to be performed and reported but at the expense of finality. Finality is reached within 60 seconds between parachains but for external ecosystems like Ethereum their state obviously can’t be rolled back like a parachain and so finality will need to be much longer (60 minutes was suggested in the whitepaper) and discussed in more detail in part three
AvalancheAvalanche consensus achieves finality within 3 seconds, with most happening sub 1 second, immutable and completely irreversible. Any subnet can connect directly to another without having to go through multiple hops and any VM can talk to another VM within the same subnet as well as external subnets. It doesn’t need to wait for an extended period of time with risk of rollbacks.
ResultsWith regards to performance far too much emphasis is just put on tps as a metric, the other equally important metric, if not more important with regards to finance is latency. Throughput measures the amount of data at any given time that it can handle whereas latency is the amount of time it takes to perform an action. It’s pointless saying you can process more transactions per second than VISA when it takes 60 seconds for a transaction to complete. Low latency also greatly increases general usability and customer satisfaction, nowadays everyone expects card payments, online payments to happen instantly. Avalanche achieves the best results scoring ✅✅✅, Cosmos with comes in second with 6 second finality ✅✅ and Polkadot with 60 second finality (which may be 60 minutes for external blockchains) scores ✅
CosmosEvery Zone and Hub in Cosmos has their own validator set and different trust assumptions. Cosmos are researching a shared security model where a Hub can validate the state of connected zones for a fee but not released yet. Once available this will make shared security optional rather than mandatory.
PolkadotShared Security is mandatory with Polkadot which uses a Shared State infrastructure between the Relay Chain and all of the connected parachains. If the Relay Chain must revert for any reason, then all of the parachains would also revert. Every parachain makes the same trust assumptions, and as such the relay chain validates state transition and enables seamless interoperability between them. In return for this benefit, they have to purchase DOT and win an auction for one of the available parachain slots.
However, parachains can’t just rely on the relay chain for their security, they will also need to implement censorship resistance measures and utilise proof of work / proof of stake for each parachain as well as discussed in part three, thus parachains can’t just rely on the security of the relay chain, they need to ensure sybil resistance mechanisms using POW and POS are implemented on the parachain as well.
AvalancheA subnet in Avalanche consists of a dynamic set of validators working together to achieve consensus on the state of a set of many blockchains where complex rulesets can be configured to meet regulatory compliance. So unlike in Cosmos where each zone / hub has their own validators, A subnet can validate a single or many virtual machines / blockchains with a single validator set. Shared security is optional
ResultsShared security is mandatory in polkadot and a key design decision in its infrastructure. The relay chain validates the state transition of all connected parachains and thus scores ✅✅✅. Subnets in Avalanche can validate state of either a single or many virtual machines. Each subnet can have their own token and shares a validator set, where complex rulesets can be configured to meet regulatory compliance. It scores ✅ ✅. Every Zone and Hub in cosmos has their own validator set / token but research is underway to have the hub validate the state transition of connected zones, but as this is still early in the research phase scores ✅ for now.
CosmosThe Cosmos project started in 2016 with an ICO held in April 2017. There are currently around 50 projects building on the Cosmos SDK with a full list can be seen here and filtering for Cosmos SDK . Not all of the projects will necessarily connect using native cosmos sdk and IBC and some have forked parts of the Cosmos SDK and utilise the tendermint consensus such as Binance Chain but have said they will connect in the future.
PolkadotThe Polkadot project started in 2016 with an ICO held in October 2017. There are currently around 70 projects building on Substrate and a full list can be seen here and filtering for Substrate Based. Like with Cosmos not all projects built using substrate will necessarily connect to Polkadot and parachains or parathreads aren’t currently implemented in either the Live or Test network (Kusama) as of the time of this writing.
AvalancheAvalanche in comparison started much later with Ava Labs being founded in 2018. Avalanche held it’s ICO in July 2020. Due to lot shorter time it has been in development, the number of projects confirmed are smaller with around 14 projects currently building on Avalanche. Due to the customisability of the platform though, many virtual machines can be used within a subnet making the process incredibly easy to port projects over. As an example, it will launch with the Ethereum Virtual Machine which enables byte for byte compatibility and all the tooling like Metamask, Truffle etc. will work, so projects can easily move over to benefit from the performance, decentralisation and low gas fees offered. In the future Cosmos and Substrate virtual machines could be implemented on Avalanche.
ResultsWhilst it’s still early for all 3 projects (and the entire blockchain space as a whole), there is currently more projects confirmed to be building on Cosmos and Polkadot, mostly due to their longer time in development. Whilst Cosmos has fewer projects, zones are implemented compared to Polkadot which doesn’t currently have parachains. IBC to connect zones and hubs together is due to launch Q2 2021, thus both score ✅✅✅. Avalanche has been in development for a lot shorter time period, but is launching with an impressive feature set right from the start with ability to create subnets, VMs, assets, NFTs, permissioned and permissionless blockchains, cross chain atomic swaps within a subnet, smart contracts, bridge to Ethereum etc. Applications can easily port over from other platforms and use all the existing tooling such as Metamask / Truffle etc but benefit from the performance, decentralisation and low gas fees offered. Currently though just based on the number of projects in comparison it scores ✅.
CosmosCosmos enables permissioned and permissionless zones which can connect to each other with the ability to have full control over who validates the blockchain. For permissionless zones each zone / hub can have their own token and they are in control who validates.
PolkadotWith polkadot the state transition is performed by a small randomly selected assigned group of validators from the relay chain plus with the possibility that state is rolled back if an invalid transaction of any of the other parachains is found. This may pose a problem for enterprises that need complete control over who performs validation for regulatory reasons. In addition due to the limited number of parachain slots available Enterprises would have to acquire and lock up large amounts of a highly volatile asset (DOT) and have the possibility that they are outbid in future auctions and find they no longer can have their parachain validated and parathreads don’t provide the guaranteed performance requirements for the application to function.
AvalancheAvalanche enables permissioned and permissionless subnets and complex rulesets can be configured to meet regulatory compliance. For example a subnet can be created where its mandatory that all validators are from a certain legal jurisdiction, or they hold a specific license and regulated by the SEC etc. Subnets are also able to scale to tens of thousands of validators, and even potentially millions of nodes, all participating in consensus so every enterprise can run their own node rather than only a small amount. Enterprises don’t have to hold large amounts of a highly volatile asset, but instead pay a fee in AVAX for the creation of the subnets and blockchains which is burnt.
ResultsAvalanche provides the customisability to run private permissioned blockchains as well as permissionless where the enterprise is in control over who validates the blockchain, with the ability to use complex rulesets to meet regulatory compliance, thus scores ✅✅✅. Cosmos is also able to run permissioned and permissionless zones / hubs so enterprises have full control over who validates a blockchain and scores ✅✅. Polkadot requires locking up large amounts of a highly volatile asset with the possibility of being outbid by competitors and being unable to run the application if the guaranteed performance is required and having to migrate away. The relay chain validates the state transition and can roll back the parachain should an invalid block be detected on another parachain, thus scores ✅.
CosmosCosmos will connect Hubs and Zones together through its IBC protocol (due to release in Q1 2020). Connecting to blockchains outside of the Cosmos ecosystem would either require the connected blockchain to fork their code to implement IBC or more likely a custom “Peg Zone” will be created specific to work with a particular blockchain it’s trying to bridge to such as Ethereum etc. Each Zone and Hub has different trust levels and connectivity between 2 zones can have different trust depending on which path it takes (this is discussed more in this article). Finality time is low at 6 seconds, but depending on the number of hops, this can increase significantly.
PolkadotPolkadot’s shared state means each parachain that connects shares the same trust assumptions, of the relay chain validators and that if one blockchain needs to be reverted, all of them will need to be reverted. Interoperability is enabled between parachains through Cross-Chain Message Passing (XCMP) protocol and is also possible to connect to other systems through bridges, which are specifically designed parachains or parathreads that each are custom made to interact with another ecosystem such as Ethereum and Bitcoin. Finality time between parachains is around 60 seconds, but longer will be needed (initial figures of 60 minutes in the whitepaper) for connecting to external blockchains. Thus limiting the appeal of connecting two external ecosystems together through Polkadot. Polkadot is also limited in the number of Parachain slots available, thus limiting the amount of blockchains that can be bridged. Parathreads could be used for lower performance bridges, but the speed of future blockchains is only going to increase.
AvalancheA subnet can validate multiple virtual machines / blockchains and all blockchains within a subnet share the same trust assumptions / validator set, enabling cross chain interoperability. Interoperability is also possible between any other subnet, with the hope Avalanche will consist of thousands of subnets. Each subnet may have a different trust level, but as the primary network consists of all validators then this can be used as a source of trust if required. As Avalanche supports many virtual machines, bridges to other ecosystems are created by running the connected virtual machine. There will be an Ethereum bridge using the EVM shortly after mainnet. Finality time is much faster at sub 3 seconds (with most happening under 1 second) with no chance of rolling back so more appealing when connecting to external blockchains.
ResultsAll 3 systems are able to perform interoperability within their ecosystem and transfer assets as well as data, as well as use bridges to connect to external blockchains. Cosmos has different trust levels between its zones and hubs and can create issues depending on which path it takes and additional latency added. Polkadot provides the same trust assumptions for all connected parachains but has long finality and limited number of parachain slots available. Avalanche provides the same trust assumptions for all blockchains within a subnet, and different trust levels between subnets. However due to the primary network consisting of all validators it can be used for trust. Avalanche also has a much faster finality time with no limitation on the number of blockchains / subnets / bridges that can be created. Overall all three blockchains excel with interoperability within their ecosystem and each score ✅✅.
CosmosThe ATOM token is the native token for the Cosmos Hub. It is commonly mistaken by people that think it’s the token used throughout the cosmos ecosystem, whereas it’s just used for one of many hubs in Cosmos, each with their own token. Currently ATOM has little utility as IBC isn’t released and has no connections to other zones / hubs. Once IBC is released zones may prefer to connect to a different hub instead and so ATOM is not used. ATOM isn’t a fixed capped supply token and supply will continuously increase with a yearly inflation of around 10% depending on the % staked. The current market cap for ATOM as of the time of this writing is $1 Billion with 203 million circulating supply. Rewards can be earnt through staking to offset the dilution caused by inflation. Delegators can also get slashed and lose a portion of their ATOM should the validator misbehave.
PolkadotPolkadot’s native token is DOT and it’s used to secure the Relay Chain. Each parachain needs to acquire sufficient DOT to win an auction on an available parachain lease period of up to 24 months at a time. Parathreads have a fixed fee for registration that would realistically be much lower than the cost of acquiring a parachain slot and compete with other parathreads in a per-block auction to have their transactions included in the next relay chain block. DOT isn’t a fixed capped supply token and supply will continuously increase with a yearly inflation of around 10% depending on the % staked. The current market cap for DOT as of the time of this writing is $4.4 Billion with 852 million circulating supply. Delegators can also get slashed and lose their DOT (potentially 100% of their DOT for serious attacks) should the validator misbehave.
AvalancheAVAX is the native token for the primary network in Avalanche. Every validator of any subnet also has to validate the primary network and stake a minimum of 2000 AVAX. There is no limit to the number of validators like other consensus methods then this can cater for tens of thousands even potentially millions of validators. As every validator validates the primary network, this can be a source of trust for interoperability between subnets as well as connecting to other ecosystems, thus increasing amount of transaction fees of AVAX. There is no slashing in Avalanche, so there is no risk to lose your AVAX when selecting a validator, instead rewards earnt for staking can be slashed should the validator misbehave. Because Avalanche doesn’t have direct slashing, it is technically possible for someone to both stake AND deliver tokens for something like a flash loan, under the invariant that all tokens that are staked are returned, thus being able to make profit with staked tokens outside of staking itself.
There will also be a separate subnet for Athereum which is a ‘spoon,’ or friendly fork, of Ethereum, which benefits from the Avalanche consensus protocol and applications in the Ethereum ecosystem. It’s native token ATH will be airdropped to ETH holders as well as potentially AVAX holders as well. This can be done for other blockchains as well.
Transaction fees on the primary network for all 3 of the blockchains as well as subscription fees for creating a subnet and blockchain are paid in AVAX and are burnt, creating deflationary pressure. AVAX is a fixed capped supply of 720 million tokens, creating scarcity rather than an unlimited supply which continuously increase of tokens at a compounded rate each year like others. Initially there will be 360 tokens minted at Mainnet with vesting periods between 1 and 10 years, with tokens gradually unlocking each quarter. The Circulating supply is 24.5 million AVAX with tokens gradually released each quater. The current market cap of AVAX is around $100 million.
ResultsAvalanche’s AVAX with its fixed capped supply, deflationary pressure, very strong utility, potential to receive air drops and low market cap, means it scores ✅✅✅. Polkadot’s DOT also has very strong utility with the need for auctions to acquire parachain slots, but has no deflationary mechanisms, no fixed capped supply and already valued at $3.8 billion, therefore scores ✅✅. Cosmos’s ATOM token is only for the Cosmos Hub, of which there will be many hubs in the ecosystem and has very little utility currently. (this may improve once IBC is released and if Cosmos hub actually becomes the hub that people want to connect to and not something like Binance instead. There is no fixed capped supply and currently valued at $1.1 Billion, so scores ✅.
All three are excellent projects and have similarities as well as many differences. Just to reiterate this article is not intended to be an extensive in-depth list, but rather an overview based on some of the criteria that I feel are most important. For a more in-depth view I recommend reading the articles for each of the projects linked above and coming to your own conclusions, you may have different criteria which is important to you, and score them differently. There won’t be one platform to rule them all however, with some uses cases better suited to one platform over another, and it’s not a zero-sum game. Blockchain is going to completely revolutionize industries and the Internet itself. The more projects researching and delivering breakthrough technology the better, each learning from each other and pushing each other to reach that goal earlier. The current market is a tiny speck of what’s in store in terms of value and adoption and it’s going to be exciting to watch it unfold.
For more information see the articles below (each with additional sources at the bottom of their articles)
Avalanche, a Revolutionary Consensus Engine and Platform. A Game Changer for Blockchain
Avalanche Consensus, The Biggest Breakthrough since Nakamoto
Cosmos — An Early In-Depth Analysis — Part One
Cosmos — An Early In-Depth Analysis — Part Two
Cosmos Hub ATOM Token and the commonly misunderstood staking tokens — Part Three
Polkadot — An Early In-Depth Analysis — Part One — Overview and Benefits
Polkadot — An Early In-Depth Analysis — Part Two — How Consensus Works
Polkadot — An Early In-Depth Analysis — Part Three — Limitations and Issues
You have probably read dozens of articles dedicated to this subject before, and likely skipped even more. So why write another one, let alone read it? The short answer is times have changed. Well, times always change. Still, the point is that we may be amidst a paradigm shift in the cryptocurrency space right now even if we don’t feel it yet.submitted by Stealthex_io to StealthEX [link] [comments]
Such a fundamental change is possible due to a confluence of several factors. Some of these factors are external and therefore not related to crypto. Others are internal and represent the value-oriented nature of cryptocurrencies. It just happened that all of them got activated under specific conditions at a certain point in time, which is today, give or take.
Economic woes in a post-Covid-19 WorldYou wouldn’t be far from the truth if you claimed that we haven’t yet pulled through the pandemic, to begin with. Unfortunately, it only makes matters worse unless you are a cryptocurrency investor and don’t care for the rest of humanity. Anyway, the damage has been done, and nothing can change that. We are now entering the phase that is technically called “competitive devaluations” and colloquially known as currency wars.
You could also argue that if it didn’t happen at the peak of the coronavirus pandemic, it is not going to happen now. The sad truth is that we are only starting to feel the real pain. Even the deadly coronavirus doesn’t take over the body instantly, while it takes some time on the scale of a few months up to a couple years for the economic disease to spread through the fabric of society, evolve, and then erupt with inflation rates shooting through the roof, among many other nasty things. Please take your seat.
The world reserve fiat, the American dollar, is sinking like Titanic, slowly but surely. We can’t say the same about less lucky currencies, though. We won’t dwell on the Venezuelan bolivar and Zimbabwean dollar as they are altogether beyond redemption, but fiats like the Brazilian real and Russian ruble are also balancing on the brink of another landslide devaluation, which they have seen many in the past. Sharp minds in the cryptocurrency space have been telling us about this development for ages. It all looked like a remote possibility in some distant future that as we felt deep down wouldn’t have a chance to come up in our lifetime.
As it stands, we were wrong, and the events described are now starting to unfold right before our own eyes. In a strange twist of fate, large-scale cryptocurrency adoption is about to occur along with them, but not through some technical breakthroughs and innovation, or even the much-hyped DeFi, but primarily through the failure of conventional financial systems based on fiat currencies. Rest assured, the top dogs in the cryptocurrency pit are well aware of this dynamic, and they are not going to wait any longer.
Grayscale Investments, a multi-billion dollar company behind a host of cryptocurrency trust funds, started to frenziedly buy up bitcoins a couple weeks ago. All in all, it acquired over 17,000 BTC adding to its already quite impressive stash of Bitcoin, now totalling almost 450,000 coins under its management. Love it or leave it, but it amounts to 2.4% of all bitcoins mined to date, including lost, burned, or left for dead as dust in Bitcoin wallets. In essence, it means that their effective share is way higher.
But while Grayscale definitely sits at the top of the cryptocurrency investment chain, it is not the only company that went on a buying spree lately. MicroStrategy, a company largely unknown to the wider public, suddenly got religion and swapped over $400 million of its capital into 38,250 BTC. Even Barry Silbert, CEO of Grayscale, commented on this feat in his tweet.
Twitter, by StealthEX
So whenever there is a hint at price correction, someone comes out of the shadows and picks up a handful of bitcoins from the market propping up the price.
Why are they doing this? You already know the answer.
Paradigm shiftIn different words, all that cryptocurrencies had to do was to last long enough until fiat started to fall apart. It does now, and paradoxically such times are also times of great opportunity, Baron Rothschild’s way. The world’s largest cryptocurrency exchange, Binance, has been pushing its cryptocurrency payment card since April when it acquired Swipe, a firm focused on crypto-to-fiat payment cards. At the time of the acquisition Swipe already supported 20 cryptocurrencies and fiat transactions in major currencies.
Binance.com, by StaelthEX
For European users the Binance card was officially made available in August, and the exchange plans to enter the US market soon. Given its dominance in the crypto arena, it wouldn’t be unreasonable to expect the surge in the cryptocurrency use as a means of payment thanks to this. It is unlikely that people would spend their precious bitcoins, but the packmaster is not the only member of the pack that Binance handles. Cryptos like Litecoin or Bitcoin Cash can easily become currencies of choice to use with Binance debit cards.
But what truly makes it a game-changer is the current turmoil in the global economic affairs which may turn out to be a once-in-a-lifetime chance for crypto to pick up where fiat currencies leave, or fail, to be exact. On the other hand, it may be a natural development after all, set in stone by the very first Bitcoin transaction and cemented for good when it got confirmed. Now things start to arrange themselves to fit their preordained layout. We have taken our time.
As cryptocurrencies are not internally linked to, or tied by, the lunatic policies of monetary authorities, that is to say, no central bank can ask or force miners to mine more bitcoins, we have the first element in place in the layout for the cryptocurrency mass adoption to occur at the most basic level. In fact, it has always been there, so we just had to wait until the two other elements arrived, even though it took longer than most of us were ready to wait.
The second required element in the grand picture of cryptocurrency adoption is the change in attitude toward wealth evaluation. So far the vast majority of people involved in crypto, including its most die-hard supporters, valued their cryptocurrency holdings in fiat terms. Without doubt, it was the US dollar, regardless of your home currency. But when fiat collapses or enters a long period of runaway inflation, people will be ready for a dramatic change in their approaches toward capital assessment as well as spending habits.
And here comes the most important part where Binance hits the nail on the head. If you are unable to effortlessly spend crypto in your everyday life, the first two components cannot trigger this change in attitude on their own. We need this third element to make use of what has existed and take advantage of what has come around. In a way, what Binance did, and what its competitors are no doubt going to do as well if they don’t want to miss out on the opportunity, appears to be the part that snugly snaps into place when we finally get there.
With Binance payment card, you can “buy the things you love with crypto”. So now the ball is in your court to support the full-scale cryptocurrency adoption coming up. Kidding aside, with fiat turning into trash by leaps and bounds all over the globe, this looks like a very enticing payment option for both the crypto purists and the unbanked. We have seen quite a few such cards in the past, but Binance seems to be adamant on making its variety really popular and actually usable. And then you can ride volatility waves to your financial benefit.
If Binance succeeds, that may herald a new era of cryptocurrency adoption, a breakthrough of sorts after so many years of stagnation in this department.
Repercussions and ramificationsIt is not like only we, traders and investors alike, see these trends. Governments are also taking notice and paying close attention. They can’t remove cryptocurrencies and they can’t help inflating their national currencies. However, they can still crack down massively on this and similar endeavors, trying to nip them in the bud. We don’t know yet what Uncle Sam is going to say but some muslim countries have been quite vocal in this regard.
For example, Egypt has issued a fetva which prohibits bitcoin transactions as being against Sharia, an Islamic religious law. Another mostly Islamic country, Indonesia, has banned the use of cryptocurrencies as a means of payment. Russia, although not Islamic yet, is hellbent on effectively outlawing most cryptocurrency operations despite passing earlier a law on digital assets which is essentially neutral to crypto.
To conclude, we must be aware that once things get serious and governments see that their monetary supremacy is being threatened, that they can no longer play their favorite game of inflation tax, they will leave no stone unturned to prevent mass use of crypto as an alternative means of payment. And cryptocurrency payment cards are hands down one of the best tools available for this use on a down-to-earth level, groceries and whatnot.
Now you know what their target will be.
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The views and opinions expressed here are solely those of the author. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Original article was posted on https://stealthex.io/blog/2020/10/06/cryptocurrency-adoption-a-breakthrough/
Ren allows the free movement of value between all blockchains and transfer of tokens in zero-knowledge. Unlocking new liquidity and resources to power a new wave of value in the open finance movement. With Ren all decentralized applications can run in secret, preserving the privacy of all users and data. (Renproject.io)
Ren is the evolution of the technology that underpins RepublicProtocol, in its most useful and general form. It becomes something much bigger than Republic Protocol and will empower developers to build decentralized and trustless applications, with a distinct focus on financial applications. Using our own newly developed secure multiparty computation protocol, all DeFi applications will have access to interoperable liquidity and run in complete secrecy. (Ren —The Evolution of a Protocol)💡 To dumb it down a bit, Ren is the organization's name, REN is the ERC-20 based token, and RenVM is Ren’s core product.
RenVM is replicated over thousands of machines that work together to power it, contributing their network bandwidth, their computational power, and their storage capacity. These machines are known as Darknodes.Ok so now we know what a Darknode is but what is REN Tokens used for?
Darknodes communicate with other Darknodes around the world to keep RenVM running. Without them, there is no virtual machine upon which Ren can exist. RenVM uses Byzantine Fault Tolerant consensus algorithms and secure multiparty computations so that Darknodes can be operated by anyone without needing to trust them. This is what makes RenVM — and by extension, Ren itself — decentralized, trustless, and private. (Ren Documentation)
The decentralized network of Darknodes is permissionless, but to prevent the forging of a large number of identities a good behavior a bond of 100,000 REN tokens is required in order to register and run a Darknode. This prevents malicious adversaries from running an unbounded number of Darknodes and overwhelming the network with misbehaving Darknodes. (Ren Documentation)As stated, to run a Darknode you'll need 100,000 REN. You can liken this to Proof of Stake (PoS) systems in which you stake a certain currency to encourage honest behavior in block production. The benefits of running a Darknode is you will be paid transaction fees. Initially, the fees were paid in REN tokens but now Darknode operators can be paid other cryptocurrencies such as BTC, ETH, ZEC, and other ERC20 tokens.
The Ren Alliance is a consortium of DeFi companies and/or projects that are helping secure, develop, and utilize RenVM. (Introducing the Ren Alliance)Also, Important to note is Ren has top tier investors in the likes of FGB Capital, Polychain Capital, and Kenetic Capital. But its headlining investor is crypto giant Huobi, which this past July launched its Huobi Cloud platform for OTC desks. Work is being done and a lot of progress is being made.
The blockchain-based networks are being built to offer specific capabilities such as making payments, storing and trading assets and others. However, these capabilities are being offered in isolation where these networks don’t talk to each other and cannot share data. Existing centralized systems have evolved to offer the same capabilities in a more integrated way where these systems are able to run end to end transactions seamlessly making it easier for users.The cryptocurrency space is pretty fragmented at times. There also is a bunch of tribalism. It can be a bit annoying. One coin makes massive efforts over here and another coin is making massive efforts over there. What if we could combine the efforts into one big force of nature? I think we can take over the world. Which, would be, huge.
If blockchain-based networks have to make a strong case for their adoption, they have to be able to work with each other and offer this seamless integration of capabilities to their users.
Strong interoperability would give users a much more useful, user-friendly experience. With this interoperability, users will be able to experience the seamless integration of capabilities being offered by the blockchain-based networks. If we have to hypothesize an example, it would look something like this – User will be able to tokenize the asset (e.g. artwork) over Ethereum based DApp, will be able to transfer the tokenized asset to another address over Cardano, and pay any corresponding transaction fees over the bitcoin network. (Capgemini)
There is not going to be one blockchain to rule them all, each have their own advantages and disadvantages. Interoperability is key to unlocking the true potential of blockchain, where it will have a profound effect across all industries, creating a secure, trusted and hyper-connected world.submitted by xSeq22x to QuantNetwork [link] [comments]
The rise of The Networks of Networks, interconnecting all DLT Networks, existing off-chain networks and even the Internet itself. Where true, scalable interoperability can be achieved without requiring connected chains to fork their code and imposing limitations, without the overhead, bottleneck and single point of failure of adding another blockchain in the middle. Where it will be quick, easy and free to participate.
It’s time to stop the childish tribalism that’s plagued this space for so long and realise the bigger picture. Tribes fighting amongst themselves over a tiny insignificant island where there is a whole world out there to conquer if they work together. A rising tide lifts all boats and with the birth of The Network of Networks all connected projects can benefit from the efforts of each other, to usher in Mass adoption of Blockchain.
In this article I will discuss the foundations that are being laid in preparation for the release of Overledger Network, The Network of Networks to make all of this possible and to unleash the true potential of blockchain with a secure, hyper-connected decentralised ecosystem. Table of Contents:
Overledger SDK UpdateQuant have just released their Overledger SDK update which has enabled standardisation of objects to abstract and simplify how to interact with different types of blockchains (UXTO and Account-based) in a common model. As well as the ability to directly deploy, invoke and query smart contracts directly through Overledger. I strongly recommend reading the teams Overledger SDK Update which explains it in more detail and includes example use cases of how Overledger is being used and the benefits it brings. Dr Luke Riley also did a fantastic job providing an in-depth demo of the Overledger SDK Update via Video as well.
“This update sets the foundations to build the ecosystem for Overleger Network, allowing stakeholders other than Quant to write any type (DLT and non-DLT) Overledger connectors and sets up the ecosystem with multiple entry points for Overledger Gateways. These updates open up the integration capabilities of Overledger to 3rd parties and create the foundations for the Overledger Network”
“Trusted standards mean that industry doesn’t need to reinvent the wheel, that innovations will be compatible and work with existing technology, and that products and services will be trusted too. Governments use standards as trusted solutions to complement regulation, and they give peace of mind to consumers who know they are not putting themselves or their families at risk.” — Acting ISO Secretary-General Kevin McKinleyThe foundations need to align with internationally recognised standards as they play a crucial role in ensuring interoperability with new and existing technology and validates a product meets the best practices / regulation required to ensure Enterprises remains in compliance. CEO of Quant, Gilbert Verdian, founded the ISO TC 307 standard covering blockchain as a whole, which 56 countries are working towards today.
Countries involved with ISO TC 307 — https://www.iso.org/committee/6266604.html?view=participation
Gilbert Verdian is the chairman for the ISO TC 307 working group for interoperability of blockchain and distributed ledger technology systems as well as being chairman for Blockchain and Distributed Ledger Technology for BSI (British Standards Institution) which represent the UK and includes companies such as Quant, IBM, Microsoft, HSBC, BAE Systems, Huawei as well as a number of UK Government bodies such as BEIS — Department for Business, Energy & Industrial Strategy, Defence Science and Technology and the National Cyber Security Centre.
The standardisation updates to the Overledger SDK aligns with the work in ISO TC 307 and academic work from Dr Paolo Tasca and Dr Claudio Tessone to provide users with a clear distributed ledger data standard. This will enable everyone to easily create connectors in a standard way, facilitating interoperability with all of the connected blockchains / non-DLT networks that are already connected to Overledger through Overledger Gateways.
SecurityCybersecurity is in Quant’s DNA. The team have a rich heritage of working for Governments, banks and industry for over 20 years protecting organisations and people from security threats. Before Quant, Gilbert Verdian was the Chief Information Security Officer for Vocalink (Mastercard) where he was in charge of security for the entire payments infrastructure in the UK (£6 Trillion per year).
Gilbert has led a team determined to take security to another level, protecting a critical part of the UK’s infrastructure, protecting UK citizens and businesses from fraud and risk and, by extension, allowing them to live as they want to. Under Gilbert’s guidance, Vocalink security is not merely best-in-class, but setting a new standard. — https://connect.vocalink.com/2017/july/a-winning-streak/In addition to Quant being selected as a Guarantor for Pay.UK, Gilbert has also been appointed to the Cybersecurity Advisory Board (Pay.UK is the UK’s leading retail payments authority and runs the UK’s retail payments operations, which includes Bacs, Faster Payments and Cheques.)
The pillars of security are Confidentiality, Integrity and Availability. As such, they have used their experience in running payment and financial infrastructure and critical national infrastructure for nations and embedded these principles into every aspect of Overledger.
RegulationRegulation is playing an ever increasing role for blockchain. Standards and Security naturally complement and help define regulation. The verticals Quant are involved in with regards to regulation span the globe. Gilbert helped shape the conversation about consumer data protection rights during his time as CISO of NSW Health, and is continuing to serve as a cornerstone for policy within the adoption of blockchain in public infrastructure. Quant serves as a founding member of INATBA (The International Association of Trusted Blockchain Applications), which is the formal governing body of the European Blockchain Partnership, all of which is overseen in Brussels by the EU. More locally, Gilbert and team are in consistent contact with the House of Lords within the UK, and advises the FCA in matters regarding cryptoassets.
As recently seen in the SDK update, Overledger can serve as a key component of automatic compliance of governance bodies’ financial regulation, shown here by an Overledger instance reporting to the BoE’s Prudential Regulation Authority. Project BARAC, stewarded by University College London, is a project examining the impact Automatic Regulation as administered by Blockchain can have on the Federal Government. Most notably, the FCA and R3, the developers of Corda, are involved here. Gilbert’s recent engagements with the Federal Reserve Bank of Boston also seem to revolve around this very topic, with the Boston Fed pilot-testing a Supervisor Node for automatic regulatory compliance. While at P2PFISY 2019, it was noted by Gilbert that Raphael Auer’s “Regulation Automata” aligns very well with the vision of Overledger, with Paolo Tasca, former CSO of Quant, more recently co-hosting a recent blockchain panel with him. Raphael’s ideas will most likely be taken into consideration by the BIS, as they recently announced a trial of a 6 central banks collaboration centered around exploring CBDC, and are in the early stages of installing Innovation Hubs in Hong Kong, Switzerland, and Singapore.
Gilbert Verdian with Guy Dietrich (Managing Director at Rockefeller Capital who is also on the Board at Quant) attending a meeting with the Financial Conduct Authority
The Overledger Network is a network of networks, which allows enterprise and communities stakeholders to access and participate in a growing hyper-connected decentralised ecosystem. Enterprises, banks, central banks, trading venues, etc will be able to host their own secure dedicated gateways, enabling secure connectivity to permissioned networks, permissionless networks, ecosystems, consortia and other distributed technologies. Community members will also be able to run an Overledger gateway to further enhance the scalability, decentralisation and optimise network latency, providing enterprises, developers and users choice to use the closest gateway when accessing permissionless blockchains. The Overledger gateways will create a scalable p2p network that shares the transaction and volume between participants and chooses the closest or largest node to transact with.
As per the example use case in the recent update a Bank can run an Overledger Gateway to provide access to the various consortiums hosted on a variety of blockchains including Corda, Hyperledger Fabric and JP Morgan’s Quorum as well as access to the legacy / non-DLT platforms. Should they want to utilise a public blockchain as well in a hybrid scenario then they also have the option of using a Overledger Gateway hosted by a community member.
The Overledger Gateways contain several layers which we will explore some of their features below:
Overledger Operating Systemhttps://preview.redd.it/9v7rxtmvyoi41.png?width=1197&format=png&auto=webp&s=01c9d6e0a73f595283e3cebeb45b5a6bf484d94d
Overledger allows connection to any blockchain / DAG as well as easily integrating with existing non-DLT environments. It does this without adding the overhead of yet another blockchain / consensus in the middle, ensuring that it’s scalable and doesn’t contain a single point of failure. Nor does it require the connected blockchains to fork their code to integrate and place restrictions on what can be implemented going forward. All of this is done in a secure, trustless manner where transactions are signed and encrypted client side so the contents can’t be viewed / modified as they pass through Overledger. It currently connects all of the leading permissioned and permissionless blockchains used by enterprises today. This article explains the differences between other interoperability solutions and the benefits of Quant’s approach
The Five Ingredients of Interoperability:Recently there was an interoperability webinar with Fintech connect with speakers such as R3’s CTO Richard Gendal Brown, along with representatives from the Bank of England, Deutsche Boerse, Nasdaq, ArchaxEx and SwissRe. Richard Gendal Brown from R3 wrote about the Five key Ingredients of Interoperability:
At QuantX in December they announced Overledger Interchange which enables settlement on a variety of existing non-dlt payment rails such as Faster Payments, BACS, CHAPS, SEPA, SWIFT as well as on DLT payment rails such as with Central Bank Digital Currencies, Stablecoins and XRP. It also facilitates Cross Chain Atomic Swaps using Hash Time Locked Contracts ensuring Delivery vs Payment is achieved. Interchange is at the centre of the discussions Quant has had with traditional exchanges in capital markets and central banks and is a technology financial services have been missing and was built it address client needs.
Overledger enables interoperability within the same ecosystem such as Corda DAPP to another Corda DAPP etc as well as interoperability between any of the connected permissionless and permissioned blockchains.
Quants blockchain agnostic Operating System enables users to benefit from using the best features from different chains in combination and migrate between them, preventing Vendor or Tech Lock in without having to completely rewrite existing applications, achieving the holy grail of interoperability. It enables developers to quickly test a variety of connected blockchains in a sandbox environment to see which is best suited for their requirements, starting with just 3 lines of code.
Transactions Services Layerhttps://preview.redd.it/xfthwuz9zoi41.png?width=771&format=png&auto=webp&s=8721b0ae8cff0d8aa11a484ac0ac842e700def0a
The Transaction Services layer handles more complex features of Overledger. Allowing for applications to request services such as cross-chain atomic swaps, treaty contracts (Multi Chain Smart Contracts as well as enabling smart contract functionality even on blockchains that don’t support smart contracts natively such as Bitcoin) and transaction brokering (using heuristic analysis to determine which method is the fastest / cheapest out of the various payment rails)
Financial Services Layerhttps://preview.redd.it/4zgt0umazoi41.png?width=740&format=png&auto=webp&s=49a840532d70740a77c00901aafd047311b84229
Financial services features can be called upon by participants and applications to use crosschain and cross-platform. Financial Services specific use cases can use the features in Overledger to operate across networks. This layer provides enhanced privacy and security to regulated entities and institutions who require additional controls to maintain compliance to regulation and security policy. The features of Zero-knowledge Proof and privacy can be mandated for all transactions.
Channels provide interoperability of services related to digital assets, payments and tokenisation. The Overledger Network allows for participants to transfer interoperate enterprise and institutional issued tokens and assets. Connect to many existing payment rails such as SWIFT, SEPA, Faster Payments etc.
Connecting Blockchain and Non-DLT Applications / Networks to OverledgerThe connectors to Overledger which grant access to Overledger Network will be open source and soon be made available, allowing for anyone to create a connector and benefit from being part of the ecosystem. Currently the permissionless blockchain space is mostly speculation with little adoption, mainly due to issues that need to be resolved such as scalability, privacy and regulation with permissionless blockchains, however there are some extremely large Enterprises, Banks, Governments, even Central Banks getting heavily involved and going into production albeit mostly in the permissioned blockchain space where such issues are not a problem. Just as each Blockchain has its advantages and disadvantages, parts of Enterprise applications are better suited to Permissioned blockchains (such as more sensitive parts) and permissionless blockchains suited for a higher degree of immutability, thus a Hybrid model requiring interoperability between permissioned, permissionless as well as existing non-DLT applications is required arguably for many years ahead. Just as with cloud computing where everything didn’t suddenly just move up into the cloud, well over a decade later since the birth of the likes of Amazon AWS, hybrid is still very prevalent today with only recently the likes of central banks, banks, governments discussing moving more sensitive workloads to public clouds such as Amazon AWS, Microsoft Azure, Oracle Cloud etc.
SIA, Central Banks, Banks, Trading VenuesQuant Network partnered with SIA, a game changer for mass blockchain adoption by Financial Institutions. SIA is the leading financial network provider in Europe that connects over 570 Banks, Central Banks, Trading Venues (stock exchanges etc) to their infrastructure. They provide a dedicated private network / infrastructure for financial institutions. Every European financial institution will either connect via SIA, in partnership with Colt or via SWIFT (and in many cases they will have connectivity with both) in order to access the Eurosystem Single Market Infrastructure Gateway, granting access to all RTGS, Securities and Instant Payment transactions for Europe.
SIA have integrated Overledger into their private infrastructure covering Europe consisting of 570 supernodes called SIAChain which enables each bank, central Bank, trading venue etc to utilise Overledger for interoperability. Some of the largest deployments of blockchain are happening on SIAChain such as the Spunta project where the entire Italian Banking Sector will be using blockchain and due to go live next month. As well as the “Fideiussioni Digitali” initiative (Digital Sureties) to digitize the management of sureties using blockchain technology with the Central Bank of Italy involved.
Central Bank Digital Currencies are going to play a hugely significant role in the future and there is one central Bank currently testing Overledger and Quant are in discussions with 4 others.
Connecting your blockchain / legacy network to Overledger enables the possibility that it could be used by any of these connected Banks, Central Banks, Trading venues etc in their private network (obviously due to the amount of regulation and critical financial infrastructure the options are going to be limited on what they want to connect).
OracleQuant are a Fintech Partner with Oracle, the 2nd largest software company in the world and Oracle are taking Quant’s tech to their clients directly. They have 480,000 clients globally and towards the end of last year Oracle invited Quant to attend Sibos (SWIFT) where they met existing financial services and banking clients and introduced to new ones. By connecting to Overledger this also enables your solution to potentially be used by those 480,000 of Oracle’s global clients.
SIMBA ChainSIMBA Chain is a cloud-based, smart-contract-as-a-service (SCaaS) platform, enabling users across a variety of skill sets to implement dapps (decentralized applications). The easy-to-use platform is tailored for users, developers, government, and enterprises to quickly deploy blockchain dapps for their enterprise. SIMBA Chain are developing on Quant’s Overledger Blockchain OS to allow them to deploy DAPPs across multiple connected blockchains.
SIMBA Chain have recently been awared a $9.5 million contract with the US Navy, they are also working with the US Air Force. They have a thriving ecosystem with over 1100 Organizations and 650+ Applications developed. Partners include Microsoft, Government Blockchain Association, Air Force Research Laboratory, Caterpillar, SAP and EY. Recently they also integrated Unity 3D plugin for Gaming to enable owning, storing, and managing all personal gaming assets across a variety of blockchains.
These are just a few of the companies that Quant have partnered with directly, but the ecosystem for Overledger Network is the Network of Networks. Every connected blockchain (Bitcoin, Ethereum, Ripple (XRPL), EOS, Stellar, IOTA, DAG, R3’s Corda, Hyperledger Fabric, JP Morgan’s Quorum and other Permissioned Variants of Ethereum) and their associated partners / applications built on them have the ability to connect and interoperate with the other blockchains connected as well as non-DLT networks such as existing payment rails like SWIFT, Faster Payments, SEPA etc. This Network of Network’s effects will grow exponentially as more and more join the ecosystem.
Connecting the Internet directly to blockchainQuant Network are also developing the ability to allow developers to build MAPPs that integrate directly with the internet as well as blockchain data. They will enable this via creating a new IP address for blockchains which they are calling Quant IP which will enable traffic to be routed from an IP connection from the Internet through Overledger to the connected blockchains.
Another Quant product called Seeq is a distributed search engine that is able to search and retrieve data from multiple blockchains and display them via html directly from the blockchain. More details will be released about Seeq later this year.
Connecting the Internet directly to blockchain will allow websites to be natively created and served directly from blockchains, without the need to have, run and maintain web servers, web services, SSL certificates etc and all running in a completely trusted, extremely resilient / tamperproof environment. The implications of this are enormous and more details will be released by the team later on this exciting prospect. By connecting your blockchain to Overledger you will also be able to benefit from this.
Join your favourite Blockchain project to the Overledger Network EcosystemInstead of the current mentality of having the main focus for many projects of listing on exchanges for vast sums of money, why not spend a little time (connectors can be created in as little as a week of development and don’t necessarily even need to be created by the team themselves) and make your blockchain / non-DLT application available to be used by all existing enterprises / members. Not only that but if you also run an Overledger Gateway connecting your blockchain node you also benefit from the transaction fees of the traffic going to it. The connectors are open source and completely free to connect and now with the standardisation of Objects in the recent SDK update the foundations are in place for the launch of Overledger Network with an ETA of Q2 2020. If you would like your favourite blockchain project to interoperate and be part of the ecosystem to further adoption then make the relevant people aware and keep an eye out for further details released in the future.
Thanks to community member Ghost of St. Miklos for contributing the section about regulation as well as Sonic for proofreading.
You can find more about Overledger Network as well as the token utility — here and community member David W. wrote an excellent article “A deeper look into the Quant Network Utility Token (QNT) valuation dynamics and fundamentals”
What is a blockchain operating system and what are the benefits? Introducing Overledger from Quant Network.
Wall Street 2.0: How Blockchain will revolutionise Wall Street and a closer look at Quant Network’s Partnership with AX Trading
Large Enterprise Adoption of Blockchain is happening, enabled by Quant Network’s Overledger
As well as an 8 Part Series taking an indepth look at Overledger starting with Part 1
submitted by SwipeWallet to Swipe_io [link] [comments]
We all know that it was thanks to the successful launch of Bitcoin that the idea of financial transaction decentralization through cryptocurrency and blockchain is fully realized. Other cryptocurrencies and blockchain technology followed the concept of Bitcoin and tried to incorporate it in other use aside from financial transactions.
In this article, we aim to introduce Ethereum, one of the game-changers in the adaptation of blockchain in various technological landscapes.
Ethereum: A Short History
The concept of Ethereum was first introduced by a 17-year-old programmer Vitalik Buterin in his 2013 whitepaper titled “A Next-Generation Smart Contract and Decentralized Application Platform.” In the whitepaper, Buterin described Ethereum as a new platform designed easier for any type of decentralized applications (dapps) that developers can use.
He came up with the idea to use the blockchain technology beyond the financial use that the Bitcoin protocol offers. Aside from the blockchain’s original function of managing cryptocurrency transactions, blockchain developers can use Ethereum to build and store new applications. After a series of tests and crowdsourcing campaign in 2014, Ethereum became live through its testnet Frontier in 2015.
What Sets Ethereum Apart
Ethereum aims to create a platform that enables “smart contracts” and decentralized applications to be built easier, safer, and faster without any third party involved. A smart contract is a code that allows users or developers to execute transactions between parties under a prior set of rules, making it decentralized. Ethereum is built with a “Turing-complete” programming language that lets developers write programs in which the blockchain can understand and automate any upcoming agreements. More or less, as long as the codes follow the correct format and have enough resources (Ether), it could govern and implement any task.
Like in Bitcoin, Ethereum has its own cryptocurrency called Ether (ETH) which serves as the gas and fuel that helps run the Ethereum blockchain.
ETH can be used all over the world to make payments, as store of value or as collateral.At present, ETH is second to Bitcoin in terms of market capitalization.
In a nutshell, Ethereum aims to be a “world or global computer” that runs on a blockchain. It was programmed in such a way that its blockchain technology can be utilized in other ways like recording and creating computer code and applications on top of financial transactions.
If Bitcoin successfully introduced the idea of having decentralized financial transactions through cryptocurrency and blockchain technology, Ethereum opened the idea of using the blockchain technology to develop decentralized applications.
Swipe Wallet application is an example of an application tied into the Ethereum blockchain. Its open-source blockchain protocol called Swipe Network enables on-chain use of Swipe products directly within the Ethereum blockchain while connecting these processes to an off-chain dual processing system. The Swipe Network operates through smart-contract interactions on-chain given the security of Ethereum network while running an off-chain layer 2 network for speed, efficiency, and cost.
The Swipe Network connects the Wallet and Card to the Swipe Smart-Contracts. The network will enable the functions to interact and execute directly on the Ethereum blockchain and be validated directly within the smart contract.
Future of Ethereum
Ethereum’s introduction to the possibility of creating accessible decentralized applications on the blockchain brought the idea of making a general-purpose blockchain to develop the current state of technology. People realize that there is more to blockchain than cryptocurrency.
At present, people are anticipating the launch of ETH2 or Serenity as it is said to determine whether Ethereum will remain the go-to platform for dapps creation as there also other blockchains with the same idea followed.
Nevertheless, being more than just a venue for cryptocurrency transactions, Ethereum’s groundwork for smart contracts and dapps that are unavailable before is a factor for its further growth and success. As it is continuously being maintained and improved over time by contributors worldwide and is second to Bitcoin in terms of value, a lot of people are constantly watching the growth of its technology and value.
Learn more about Ethereum by visiting https://ethereum.org/
This blog article is also posted at: https://sw.pe/blogethereumbasics
Overledger is the world’s first blockchain operating system (OS) that not only inter-connects blockchains but also existing enterprise platforms, applications and networks to blockchain and facilitates the creation of internet scale multi-chain applications otherwise known as mApps.submitted by xSeq22x to QuantNetwork [link] [comments]
In less than 10 months since launching Overledger they have provided interoperability with the full range of DLT technologies from all the leading Enterprise Permissioned blockchains such as Hyperledger, R3’s Corda, JP Morgan’s Quorum, permissioned variants of Ethereum and Ripple (XRPL) as well as the leading Public Permissionless blockchains / DAGs such as Bitcoin, Stellar, Ethereum, IOTA and EOS as well as the most recent blockchain to get added Binance Chain. In addition, Overledger also connects to Existing Networks / Off Chain / Oracle functionality and it does all of this in a way that is hugely scalable, without imposing restrictions / requiring blockchains to fork their code and can easily integrate into existing applications / networks by just adding 3 lines of code.
What is a blockchain Operating system?You will be familiar with Operating systems such as Microsoft Windows, Apple Mac OS, Google’s Android etc but these are all Hardware based Operating Systems. Hardware based Operating Systems provide a platform to build and use applications that abstracts all of the complexities involved with integrating with all the hardware resources such as CPU, Memory, Storage, Mouse, Keyboard, Video etc so software can easily integrate with it. It provides interoperability between the Hardware devices and Software.
Overledger is a Blockchain Operating System, it provides a platform to build and use applications that abstracts all of the complexities involved with integrating with all the different blockchains, different OP_Codes being used, messaging formats etc as well as connecting to existing non-blockchain networks. It provides interoperability between Blockchains, Existing Networks and Software / MAPPs
How is Overledger different to other interoperability projects?Other projects are trying to achieve interoperability by adding another blockchain on top of existing blockchains. This adds a lot of overhead, complexity, and technical risk. There are a few variants but essentially they either need to create custom connectors for each connected blockchain and / or require connected chains to fork their code to enable interoperability. An example of the process can be seen below:
User sends transaction to a multi sig contract on Blockchain A, wait for consensus to be reached on Blockchain A
A custom connector consisting of Off Chain Relay Nodes are monitoring transactions sent to the smart contract on Blockchain A. Once they see the transaction, they then sign a transaction on the Interoperability blockchain as proof the event has happened on Blockchain A.
Wait for consensus to be reached on the Interoperability Blockchain.
The DAPP running on the Interoperability Blockchain is then updated with the info about the transaction occurring on Blockchain A and then signs a transaction on the Interoperability blockchain to a multi sig contract on the Interoperability Blockchain.
Wait for consensus to be reached on the interoperability Blockchain.
A different custom connector consisting of Off Chain Relay Nodes are monitoring transactions sent to the Smart Contract on the Interoperability Blockchain which are destined for Blockchain B. Once they see the transaction, they sign a transaction on Blockchain B. Wait for consensus to be reached on Blockchain B.
Other solutions require every connecting blockchain to fork their code and implement their Interoperability protocol. This means the same type of connector can be used instead of a custom one for every blockchain however every connected blockchain has to fork their code to implement the protocol. This enforces a lot of restrictions on what the connected blockchains can implement going forward.
Some problems with these methods:
But some Interoperability blockchains say they are infinitely scalable?If the interoperability blockchain is limited to say 200 tps then the idea is to just have multiple instances of the blockchain and run them in parallel, so you benefit from the aggregated tps, but just how feasible is that? Lets say you want to connect Corda (capable of 2000+ tps) to Hyperledger (capable of up to 20,000 tps with recent upgrade). (Permissioned blockchains such as Hyperledger and Corda aren’t one big blockchain like say Bitcoin or Ethereum, they have separate instances for each consortium and each is capable of those speeds). So even when you have just 1 DAPP from one consortium that wants to connect Corda to Hyperledger and use 2000 tps for their DAPP, you would need 100 instances of the Interoperability blockchain, each with their own validators (which maybe 100–200 nodes each). So, 1 DAPP would need to cover the costs for 100 instances of the blockchain and running costs for 10,000 nodes…This is just one DAPP connected to one instance of a two permissioned blockchains, which are still in the early stages. Other blockchains such as Red Belly Blockchain can achieve 440,000 tps, and this will surely increase as the technology matures. There is also the added complexity of then aggregating the results / co-coordinating between the different instances of the blockchain. Then there are the environmental concerns, the power required for all of these instances / nodes is not sustainable.
It’s not just transactions per second of the blockchain as well, its the latency of all these added consensuses along the path to reach to the destination and not knowing whether the security of each of the hops is sufficient and can be trusted. To see examples of how this potential issue as well as others effect Cosmos you can see my article here. I recommend also reading a blog done by the CEO of Quant, Gilbert Verdian, which explains how Overledger differs here as well as detailed in the whitepaper here.
Overledger’s approachIn 1973 Vint Cerf invented the protocol that rules them all: TCP/IP. Most people have never heard of it. But it describes the fundamental architecture of the internet, and it made possible Wi-Fi, Ethernet, LANs, the World Wide Web, e-mail, FTP, 3G/4G — as well as all of the inventions built upon those inventions.
Wired: So from the beginning, people, including yourself, had a vision of where the internet was going to go. Are you surprised, though, that at this point the IP protocol seems to beat almost anything it comes up against?Cerf: I’m not surprised at all because we designed it to do that.This was very conscious. Something we did right at the very beginning, when we were writing the specifications, we wanted to make this a future-proof protocol. And so the tactic that we used to achieve that was to say that the protocol did not know how — the packets of the internet protocol layer didn’t know how they were being carried. And they didn’t care whether it was a satellite link or mobile radio link or an optical fiber or something else.We were very, very careful to isolate that protocol layer from any detailed knowledge of how it was being carried. Plainly, the software had to know how to inject it into a radio link, or inject it into an optical fiber, or inject it into a satellite connection. But the basic protocol didn’t know how that worked.And the other thing that we did was to make sure that the network didn’t know what the packets had in them. We didn’t encrypt them to prevent it from knowing — we just didn’t make it have to know anything. It’s just a bag of bits as far as the net was concerned.We were very successful in these two design features, because every time a new kind of communications technology came along, like frame relay or asynchronous transfer mode or passive optical networking or mobile radio‚ all of these different ways of communicating could carry internet packets.We would hear people saying, ‘The internet will be replaced by X25,’ or ‘The internet will be replaced by frame relay,’ or ‘The internet will be replaced by APM,’ or ‘The internet will be replaced by add-and-drop multiplexers.’Of course, the answer is, ‘No, it won’t.’ It just runs on top of everything. And that was by design. I’m actually very proud of the fact that we thought of that and carefully designed that capability into the system.This is the approach Quant have taken with their Blockchain OS, Overledger to solve Blockchain interoperability. Compared to other Interoperability platforms that are trying to achieve interoperability at the transaction layer by connecting two blockchains via another blockchain, these will be ultimately be made redundant once faster methods are released. Overledger is designed to be future proof by isolating the layers so it doesn’t matter whether it’s a permissioned blockchain, permissionless, DAG, Legacy network, POW, POS etc because it abstracts the transaction layer from the messaging layer and runs on top of blockchains. Just as the Internet wasn’t replaced by X25, frame relay, APM etc, Overledger is designed to be future proof as it just runs on top of the Blockchains rather than being a blockchain itself. So, if a new blockchain technology comes out that is capable of 100,000 TPS then it can easily be integrated as Overledger just runs on top of it.
Likewise, with protocols such as HTTPS, SSH etc these will also emerge for blockchains such as ZK-Snarks and other privacy implementations as well as other features made available, all will be compatible with Overledger as its just sitting on top rather than forcing their own implementation for all.
It doesn’t require blockchains to fork their code to make it compatible, it doesn’t add the overhead of adding another blockchain with another consensus mechanism (most likely multiple as it has to go through many hops). All of this adds a lot of latency and restrictions which isn’t needed. The developer can just choose which blockchains they want to connect and use the consensus mechanisms of those blockchains rather than forced to use one.
Overledger can provide truly internet scale to meet whatever the demands may be, whether that be connecting multiple red belly blockchains together with 440,000 tps it doesn’t matter as it doesn’t add its consensus mechanism and uses proven internet scale technology such as that based on Kubernetes, which is where each task is split up into a self-contained container and each task is scaled out by deploying more to meet demand. Kubernetes is what runs Google Search engine where they scale up and down billions of containers every week.
Due to this being more of a summary, I strongly recommend you read this article which goes into detail about the different layers in Overledger.
But how does it provide the security of a blockchain if it doesn’t add its own blockchain?This is often misunderstood by people. Overledger is not a blockchain however it still uses a blockchain for security, immutability, traceability etc, just rather than force people to use their own blockchain, it utilises the source and destination blockchains instead. The key thing to understand is the use of its patented technology TrustTag, which was made freely available to anyone with the Overledger SDK.
Please see this article which explains TrustTag in detail with examples showing how hashing / digital signatures work etc
A quick overview is if i want to send data from one blockchain to another the Overledger SDK using Trusttag will put the data through a hashing algorithm. The Hash is then included in digital signature as part of the transaction which is signed by the user’s private key and then validated through normal consensus and stored as metadata on the source blockchain. The message is then sent to the MAPP off chain. The MAPP periodically scans the blockchains and puts the received message through a hashing algorithm and compares the Hash to the one stored as metadata on the blockchain. This ensures that the message hasn’t been modified in transit, the message is encrypted and only the Hash is stored on chain so completely private, provides immutability as it was signed by the user’s private key which only they have and is stored on the blockchain for high availability and secure so that it can’t be modified, with the ability to refer back to it at any point in time.
Despite Overledger being a very secure platform, with the team having a very strong security background such as Gilbert who was chief security information officer for Vocalink (Bank of England) managing £6 trillion of payments every year and classified as national critical security (highest level you can get), ultimately you don’t need to trust Overledger. Transactions are signed and encrypted at client side, so Overledger has no way of being able to see the contents. It can’t modify any transaction as the digital signature which includes a hash of the transaction would be different so would get rejected. Transaction security isn’t reduced as it is signed at source using however many nodes the source blockchain has rather than a smaller amount of nodes with an interoperability blockchain in the middle.
The Blockchain connectors are also open source and this allows the community to create connectors to connect their favourite blockchain so that it can benefit from blockchain interoperability and making it available to all enterprises / developers currently utilising Overledger. Creating is currently taking around a week to implement and so far, have been added based upon client demand.
Treaty ContractsWhat Overledger will allow with Treaty contracts is to use popular programming languages such as Java and create a smart contract in Overledger that interacts with all of the connected blockchains. Even providing Smart contract functionality to blockchains that don’t support them such as Bitcoin. This means that developers don’t have to create all the smart contracts on each blockchain in all the different programming languages but instead just create them in Overledger using languages such as Java that are widely used today. If they need to use a different blockchain then it can be as easy as changing a line of code rather than having to completely rewrite the smart contracts.
Overledger isn’t a blockchain though, so how can it trusted with the smart contract? A Hash of the smart contract is published on any blockchain the MAPP developer requires and when called the smart contract is run its run through a hashing function to check that it matches the Hash value stored on the blockchain, ensuring that it has not been modified.
By running the Smart contract off chain this also increases Scalability enormously. With a blockchain all nodes have to run the smart contract one after another rather than in parallel. Not only do you get the performance benefit of not having to run the code against every single node but you can also run them in parallel to others executing smart contracts.
You can read more about Treaty Contracts here
The different versions of Overledger
Enterprise versionThe current live version is the Enterprise version as that is where most of the adoption is taking place in blockchain due to permissioned blockchains being preferred until permissionless blockchains resolve the scalability, privacy and regulatory issues. Please see this article which goes into more details about Entereprise blockchain / adoption. The Enterprise version connects to permissioned blockchains as well as additional features / support suited for Enterprises.
Community versionThe community version is due to be released later this year which will allow developers to benefit from creating MAPPs across permissionless blockchains. Developers can publish their MAPPs on the MAPP Store to create additional revenue streams for developers.
Where does Overledger run from? Is it Centralised?Overledger can run from anywhere. The community version will have instances across multiple public clouds, Enterprises / developers may prefer to host the infrastructure themselves within a consortium which they can and are doing. For example SIA is the leading private Financial Network provider in Europe, it provides a dedicated high speed network which connects all the major banks, central banks, trading venues etc. SIA host Overledger within their private network so that all of those clients can access it in the confinement of their heavily regulated, secure, fast network. AUCloud / UKCLoud host Overledger in their environment to offer as a service to their clients which consist of Governments and critical national infrastructure.
For Blockchain nodes that interact with Overledger the choice is entirely up to the developer. Each member within a consortium may choose to host a node, some developers may prefer to use 3rd party hosting providers such as Infura, or Quant can also host them if they prefer, its entirely their choice.
Overledger allows for higher levels of decentralisation by storing the output across multiple blockchains so you not only benefit from the decentralisation of one blockchain but the combination of all of them. Ultimately though decentralisation is thrown around too much without many actually understanding what it means. It’s impossible to have complete decentralisation, when you sign a transaction to be added to a blockchain ultimately you still connect through a single ISP, connect through a single router, or the input into a transaction is done through a piece of software etc. What matters to be decentralised is where trust is involved. As i have mentioned before you don’t need to trust the OS, it’s just providing instructions on how to interact with the blockchains, the end user is signing the transactions / encrypting at client side. Nothing can be seen or modified with the OS. Even if somehow the transaction did get modified then it would get rejected when consensus is done as the hash / digital signature won’t match at the destination blockchain. Where the transaction actually gets put onto the blockchain is where decentralisation matters, because thats what needs to be trusted and conensus is reached and Overledger enables this to be written across multiple blockchains at the same time.
The TeamThe team are very well connected with a wealth of experience at very senior roles at Global enterprises which I will include a few examples below. Gilbert Verdian the CEO was the Head of security for the payment infrastructure for the Bank of England through his CISO role with Vocalink (Mastercard)managing £6 trillion every year. This is treated by the government as critical national infrastructure which is the highest level of criticallity because its so fundamental to the security of the country. They have experience and know what it takes to run a secure financial infrastructure and meeting requirements of regulators. Gilbert was director for Cybersecurity at PWC, Security for HSBC and Ernst & Young as well as various government roles such as the CISO for the Australian NSW Health, Head of Security at the UK government for Ministry of Justice and HM Treasury in addition to being part of the committee for the European Commission, US Federal Reserve and the Bank of England.
Cecilia Harvey is the Chief Operating Officer, where she was previously a Director at HSBC in Global Banking and Markets and before that Director at Vocalink. Cecilia was also Chief Operating Officer at Citi for Markets and Securities Services Technology as well as working for Barclays, Accenture, IBM and Morgan Stanley.
Vijay Verma is the Overledger platform lead with over 15 years of developer experience in latest technologies like Java, Scala, Blockchain & enterprise technology solutions. Over the course of his career, he has worked for a number of prestigious organisations including J&J, Deutsche, HSBC, BNP Paribas, UBS Banks, HMRC and Network Rail.
Guy Dietrich, the managing director of Rockefeller Capital (manages $19 Billion in assets) has joined the board of Quant Network, and has recently personally attended meetings with the Financial Conduct Authority (FCA) with Gilbert
As well as advisors such as Paolo Tasca, the founder and Executive Director of the Centre for Blockchain Technologies (UCL CBT) at University College Londonfounder and executive director as well as Chris Adelsbach, Managing Director at Techstars, the worldwide network that helps entrepreneurs succeed. Techstars has partners such as Amazon, Barclays, Boeing, Ford, Google, Honda, IBM, Microsoft, PWC, Sony, Target, Total, Verizon, Western Union etc.
Due to client demand they are expanding to the US to setup a similar size office where board members such as Guy Dietrich will be extremely valuable in assisting with the expansion.
The most exciting part about the project though is just how much adoption there has been of the platform, from huge global enterprises, governments and cloud providers they are on track for a revenue of $10 million in their first year. I will go through these in the next article, followed by further article explaining how the Token and Treasury works.
You can also find out more info about Quant at the following:
Part One — Blockchain Fundamentals
Part Two — The Layers Of Overledger
Part Three — TrustTag and the Tokenisation of data
Part Four — Features Overledger provides to MAPPs
Part Five — Creating the Standards for Interoperability
Part Six — The Team behind Overledger and Partners
Part Seven — The QNT Token
Part Eight — Enabling Enterprise Mass Adoption
Quant Network Enabling Mass Adoption of Blockchain at a Rapid Pace
Quant Network Partner with SIA, A Game Changer for Mass Blockchain Adoption by Financial Institutions
In a nutshell, these (among many others) are the characteristics of bitcoin, which looks like an appealing alternative to any fiat-based monetary system. Bitcoin is the world’s first decentralized digital currency. Its value primarily comes from it being the first digital currency that no single person, organization or authority has control over. The digital currency Bitcoin has a dedicated following, regularly makes headlines and inspires countless investors to consider making digital currency part of their portfolios. Yet it enjoys the backing of no government or third-party entity like a bank, and it can be hard to understand where its perceived value comes from. So, you may be… Bitcoin's value has been historically quite volatile. In a three-month span from October of 2017 to January of 2018, for instance, the volatility of the price of bitcoin reached to nearly 8%. Bitcoin is a cryptocurrency developed in 2009 by Satoshi Nakamoto, the name given to the unknown creator (or creators) of this virtual currency.Transactions are recorded in a blockchain, which ... Bitcoin today is analogous to oil after the development of the kerosene lamp, but before cars, planes, and the rest. It is a commodity with certain limited but meaningful real-world uses.
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