1/ #GM! What is modularity? how can it solve the data availability? How does it unlock the potential of scalable networks?
Find out in our #visualguide: The Age of #Modular#Blockchain Part 1.
2/ Blockchain networks by design faces the 'Blockchain #Trilemma'. Decentralized networks can only provide two of three aspects at any given time with respect to decentralization, security, and scalability.
3/ To achieve scalability, decentralized network must solve the data availability problem. Data availability refers to the idea that all transaction-related data is available to nodes on the blockchain network, but this process is resources incentive and causes network bottleneck
4/ Besides the data availability problem, less problematic issues such as data retrieval also arises. However, compared to data availability, data retrieval is easier to solve as it does not affect the primary transaction process in the nodes.
5/ Many innovations have been developed to overcome the DA limitations. Mainly divided into on-chain solutions and off-chain solutions. They don't need to work singularly and can complement each other.
6/ Data availability sampling (#DAS) and data availability proofs (#DAP) is the on-chain solution for data availability problem. The implementation of both methods become the foundation for #sharding and the modular #blockchain architecture.
7/ A light node/ client (LN) is a cost-effective node, which only downloads the block headers, the minimum data needed to transact. Running light nodes have a lower barrier of entry due to its minimal bandwidth and storage threshold.
8/ LN, DAS and DAP are still facing imminent limitations from current #monolithic blockchain architectures. This brings a novel solution to the table: #Modular Blockchains that ideally should be infinitely scalable, self-sovereign whilst maintaining security.
9/ Modular blockchain architectures decouple the distinct function in the network to handle particular duties and outsource other objectives to one or more separate layer. There are 4 main layers:
- Execution
- Settlement
- Consensus
- Data Availability
10/ Modular blockchain layer are stackable and can be combined according to the functionalities needed. This approach will significantly reduce the burden in the base/ settlement layer and enables the base layer to overcome the congested network.
11/ Modular blockchains also enable scalability by separating data availability into different layers. The looming of the DA problem as the network grows will be averted and the network will be able to grow as intended.
12/ Modular architectures have their own disadvantages, several concerns pointed out related to its development and design:
- Security Risk
- Development Complexity
- Monetary incentive and policy
13/ Modular blockchain is one of the scalability solutions proposed, there are others solutions but the endgame is to have all the solutions to complement, propagate new ideas and trail new path for innovation. The ultimate winner should be the user.
15/ Rollups as mentioned in the #visualguide is one of the modular solution in Ethereum by separating execution layer from settlement. To understand more about #ZK rollups and #Optimistic rollups, please check below:
#GM! 1/ #Atlantic Straddles is the latest options product from @dopex_io. Compared to normal options, Atlantic has many advantages. Join us to dive deeper into the bottom of the Atlantic.
3/ A #straddle is a neutral #options strategy that involves simultaneously buying both a put option and a call option for the underlying asset. Investors employ a straddle when they anticipate a significant move but are unsure about whether the price will move up or down.
1/ How do the cross-chain #bridges works? In this #visualguide, we explain how assets are transferred between chains and how interoperability becomes a fundamental aspect of the future.
2/ Blockchain networks are very fluid and efficient as single entities but lack the ability to communicate with each other. This creates demand for seamless transfer across different chains without using centralized exchanges as intermediaries or selling the token first.
3/ Cross-chain #bridges solve the problem by enabling the transfer of tokens, smart contracts, data, feedback, and instructions between two independent chains without intermediaries.
#GM! 1/ What is Maximal Extractable Value (#MEV)? How does it become an integral part of the #blockchain network? How does MEV work? All of your questions will be answered in our latest #visualguide.
2/ In the blockchain transaction ordering process, the block producers are responsible to aggregate, selecting, and reordering transactions in the #blockchain network based on the given economic incentives thus creating opportunities for #MEV
3/ #MEV refers to the maximum value that can be extracted from a block more than the standard block reward and gas fees by including, excluding, and changing the order of transactions in a block
#GM! 1/ #Perpetuals#futures contract has been the holy grail of derivatives in the #crypto market. We present you our latest #visualguide that breakdown complexity behind future market simplicity with our lead @minnymousegirl
2/ A #futures#contract is an agreement to buy or sell a commodity, currency, or another instrument at a predetermined price at a specified time in the future. two counterparties will trade a contract, that defines the settlement at a future date.
3/ A #perpetual contract (Perp) is a special type of futures contract that doesn’t have an expiry date. So one can hold a position for as long as they like. Perp only exists in the #crypto market.
#GM 1/ $GMX and $GLP mechanism are so delicate that some new people might be confused, but fret not! we're here to help you summarize them with #QuickBites.
#GM! 1/ #Lending and #Borrowing (LB) are the most primitive financial services. We will discuss how #DeFi LB solves and enables financial inclusivity with transparency but still maintain #privacy.
2/ In traditional #finance, the intermediaries are appointed banks or financial institutions that act as the bridge between the lender and borrower. All of these services are strictly regulated and monitored by the central #banks.
3/ Despite already existing for a long time, LB in traditional #finance has a long-standing problem: non-inclusive, stringent procedures, arduous verification process, low rate and approvals, and non-transparency.