What is Tinyman Protocol

Tinyman is a next-generation decentralized Automated Market Maker (AMM) on the Algorand blockchain. In this article, we'll discuss information about the Tinyman Protocol project.

Tinyman is a decentralized application developed to empower all web3 users, regardless of their background. It takes inspiration from the principles of transparency, open source development, decentralization, autonomy, and permissionless access that are central to creating public blockchains. With these values at its core, Tinyman aims to promote the use of these principles in the web3 space to create a more inclusive and transparent financial system.

  • Tinyman Protocol is a smart contract set that operates as an Automated Market-Maker on the Algorand blockchain.
  • Tinyman Platform is the web interface that enables users to interact with the Tinyman protocol through the tinyman.org domain.

Tinyman Protocol

Tinyman is a non-custodian decentralized exchange on Algorand that works with the Automated Market Maker(AMM) approach, specifically with the Constant Product Formula. This model is considered more suitable for trading on blockchain thanks to its capability to provide liquidity at all times. To read more about the differences between AMM and the order book mode, please refer to LINK.

Tinyman AMM v2 protocol was developed and deployed by the Tinyman team on the Algorand blockchain.

Tinyman contracts are coded in TEAL 6 and TEALISH (an internally developed programming language). Tinyman v2 is designed to work with Algorand Virtual Machine (AVM). See the Tinyman contracts here

The Tinyman development team chose Algorand as the foundation for their project due to its compatibility with Tinyman's values and advanced technological capabilities. Algorand's commitment to scalability, security, and decentralization, as well as its ability to handle a high volume of transactions efficiently, made it an ideal choice for the team.

Tinyman Platform

Facilitating on-chain interactions for Tinyman users, the Tinyman platform is comprised of a web app that runs on tinyman.org domain and its additional tools such as:

  • Tinyman protocol
  • SDKs
  • Widgets
  • Tealish
  • ASA icons platform on asa-list.tinyman.org
  • Social Media Channels

All components of the Tinyman platform are managed by the Tinyman team.

Tinyman Core Principles

The design of the Tinyman AMM v2 protocol is based on the following principles:

  • Open-source: The Tinyman AMM v2 protocol is open-source, meaning that the entire codebase is available for review by anyone interested in trading on or adding funds to the protocol. This transparency allows all users to validate the operating system, whether they are interacting directly with the smart contracts or using the Tinyman platform. We encourage all users to review the codebase and related documents to ensure complete understanding and confidence in the system.
  • Decentralized: Decentralization is a core principle of Tinyman. The platform has no control over the funds that users add and cannot access any of the assets in pools. All assets are held in the contracts deployed on the decentralized Algorand blockchain, ensuring that the system is fully decentralized and not subject to the control of any single entity.
  • Permissionless: Core Tinyman functionalities can be initiated by any Algorand address, granted the contract's task requirements are met. During any stage of these operations, no Algorand address or entity, including Tinyman itself, can disable access or revert transactions.
  • Immutable: Tinyman protocols, rules, and parameters are fixed and cannot be modified once deployed on the blockchain. The use of immutability in Tinyman helps to ensure the integrity and security of the system, as it prevents any unauthorized changes or tampering with the system's functioning.

Protocol Specification

Tinyman AMM V2 is a Constant Product Market Maker. It is mathematically similar to Tinyman V1 which in turn was modeled on Uniswap V2. The contract and protocol design for Tinyman AMM V2 is significantly different from V1 as it uses more recent features of the Algorand Virtual Machine.

1. Pool

An AMM based decentralized exchange is made up of a number of ‘Pools’, with one pool per asset pair. Users can swap assets through these pools by sending some of one asset and receiving the equivalent value of the other asset.

The funds in the pools are owned by ‘Liquidity Providers’. Each liquidity provider contributes and retains ownership of a share of the pool’s funds. The liquidity provider receives ‘Pool Tokens’ to represent their share of the pool. They can reclaim their assets at any time by returning the pool tokens.

Each Pool is an Algorand Account. The accounts hold the assets and state related to the pool. A single stateful Algorand Application contains all the logic that controls the asset transfers and state management of the pools.

Each Pool has a number of local state variables which are updated during every operation. The asset reserves (liquidity) of the pool are tracked in the local state and not determined dynamically from the account balances. This means that ‘donations’ to the pool or Algo making up the minimum balance do not contribute to the asset reserves.

If assets are transferred to the pool account with transactions that are not part of a documented group the assets will be lost. These assets are called “extra” and are only transferable to the fee collector. They will not affect the liquidity of the pool or the shares of the liquidity providers.

2. Swapping

Swaps are made with an Asset Transfer transaction together with an Application Call.

An amount of the other asset is sent to the user by the pool using an inner transaction.

The type of swap may be either fixed-input or fixed-output. If the type is fixed-output an extra inner transaction is sent to return any change from the input amount to the user (see below). A fixed-output swap has a higher transaction fee because it requires one extra inner transaction.

A swap fee is charged on all swaps. The fee is set per pool as basis points. This fee is deducted from the input amount before applying the swap formula to calculate the output.

The formulae for fixed-input and fixed-output swaps are described in Formula IV.A & IV.B respectively.

Slippage Tolerance

Swaps have slippage tolerance to allow for changes to the exchange rate between the time the swap was prepared and the swap was executed. For a fixed-input swap, a minimum output amount is included in the Application Call arguments. If the calculated output amount is less than this amount the swap will fail.

For a fixed-output swap, the slippage tolerance is included in the input amount and the exact output amount is specified in the arguments. If the calculated input amount required to achieve the target output amount is less than the provided input amount the swap fails. If it is greater then the change is returned to the user by an inner transaction.

3. Fees

Tinyman charges fees on swaps, loans and internal swap operations. A portion of this fee is allocated to the protocol (Tinyman) and the remainder is allocated to the liquidity providers by adding to the pool reserves.

The fee rate and the protocol fee fraction portion are configurable parameters on each pool. The total fee rate can be set in the range from 0.01% to 1% (10 to 100 basis points), the protocol fee fraction can be set as 1/n in the range from 1/3 to 1/10. The default fee rate is %0.3 and protocol fee fraction is 1/6 (0.05% of total input). These defaults are the same as the Tinyman V1.

Pools have a single fee setting and the same rate is applied to all swap, loan and internal swap operations.

The protocol fees accumulate in both assets. They can be claimed in full at any time by any user that issues an appropriate Application Call. The accumulated amounts of both assets are transferred by inner transactions to the fee collector. The fee collector is specified by a global state variable of the App (fee_collector). The fee_collector can be set by the global fee_manager address.

Fee parameters can be set by the global fee_setter address. The fee_setter address can be set by the global fee_manager address. The fee_manager address can be set by the current fee_manager address.

Swap Fees

Swap fees are collected from the input assets.

Examples:

A. Fixed Input

If the input amount is 5000A, fee is 5000*fee rate AssetA. If the fee rate is 0.3%, total fee is 15 AssetA, pooler fee is 13 AssetA and protocol fee is 2 AssetA.

If the input amount is 20000A, fee is 20000A*fee rate AssetA. If the fee rate is 0.3%, total fee is 60 AssetA and protocol fee is 10 AssetA.

B. Fixed Output

In this method, the extra amount added because of the slippage is returned back to the users with an inner transaction. The input amount is calculated by subtracting the extra amount from the transferred amount and the fee is applied to this amount.

If the transferred amount is 1005A, and extra amount is 5, the fee is applied to 1000 AssetA.

Flash Loan Fees

The fee rate is the same with the swap fee rate of the pool. It is applied to the loan amounts. The repayment must be equal or greater than the total of loan amount and fee.

Examples:

A. Loan single asset

If the loan is 3000 AssetA, fee is 3000*fee rate AssetA. It is 9 AssetA if the fee rate is 0.3%, so minimum repayment amount is 3009 AssetA.

B. Loan multiple assets

If the loan is 3000 AssetA and 5000 AssetB, fee is 3000*fee rate AssetA and 5000*fee rate AssetB. The minimum repayment amounts are 3009 AssetA and 5015 AssetB, if the fee rate is 0.3%.

Flash Swap Fees

The fee calculation is the same as swap. The same swap fee rate is applied to input amounts.

Examples:

A. Pay in single asset

If the payment is 3000 AssetA, the fee is 3000*fee rate AssetA.

B. Pay in multiple assets

If the payment is 1000 AssetA and 2000 AssetB, the fees are 1000*fee rate AssetA and 2000*fee rate AssetB.

4. Flash Loan

Flash loan allows users to borrow single or multiple assets with no collateral with the condition of paying it back within the same transaction group. It allows advanced users to create a custom transaction group to generate a profit without an initial capital.

Flash loan requires two application calls. The first one is for requesting a loan from the pool and the second one is for verifying the repayment.

The repayments must be made in the same asset. The repayment amount should cover the loan amount and fee. The swap fee rate applies to loan amounts.

With the first app call users specify the amount of loans in terms of asset 1 and asset 2 and group index difference between first and second application calls. Loan amounts cannot exceed the pool reserves. Requested assets are transferred to the user using inner transactions.

Verification calls check the repayment amounts. The transaction fails if they don’t cover the loan amount and fee. Repayments should be placed just before the verification app call and the contract checks the transfer amounts. Any extra payments are considered donations to pools.

Flash loan transactions can appear anywhere within a transaction group and a single group may contain multiple flash loans.

Users can use the same pool freely between the two application calls and do a swap. Unlike Flash Swap (below) usage of the pool is not restricted.

5. Flash Swap

Flash swap has similarities to swap and flash loan. It is designed for advanced users. They can create a custom transaction group, borrow assets from the pool with an application call and make a profit (arbitrage, collateral swap etc.), pay it back within the same transaction group and make another application call to verify the payment. If the payment amount is insufficient all transactions in the atomic group fail. It allows users to generate profit without risk and collateral.

Unlike the flash loan, users are free to pay back in both assets as long as the final pool invariant increases and covers the fee. This can allow for more efficient transactions in some scenarios compared to the Flash Loan.

In the regular swap, the user transfers input assets to the pool first and then receives the output assets. Flash swap allows users to change this order. They can receive the output assets first, and use these assets to make a profit, and transfer input assets to the pool. In this scenario, the applied fee is exactly the same as the swap and the fee is applied to input assets and collected in terms of input assets. If users receive 500 AssetA and send 1000 AssetB, fee amount will be 3 AssetB with default fee rate 0.3% (1000*0.003=3).

Additionally, similar to flash loan, flash swap allows users to borrow a single asset or both assets of the pool. Unlike the flash loan, users are free to pay back in both assets as long as the final pool invariant increases and covers the fee. Fees are applied to all input assets. If the repayment is made as 1000 AssetA and 2000 AssetB, the fee is collected in both assets as 3 AssetA and 6 AssetB. If the repayment is made in a single asset such as 3000 AssetB, the fee is 9 AssetB.

With the first app call, users specify the amount of loans in terms of asset 1 and asset 2 and group index difference between first and second (verification) application calls. Loan amounts cannot exceed the pool reserves. Requested assets are transferred to the user using inner transactions.

The verification calls check the initial and final invariant. Repayments must be made between two app calls. The app checks the final balance to determine the paid amounts and doesn’t check a particular transfer so users can make multiple inner and outer transactions. Any extra payments are considered as donations to the pools.

The pool is locked between the two application calls and no operation (swap, add & remove liquidity etc.) is allowed. These operations can be used before or after the flash swap in the same transaction group however.

6. Additional Notes

Donations

Any assets that are in the pool accounts but not part of the reserves, protocol fees or minimum Algo balance are claimable to the fee_collector address.

Algorand Participation Rewards that accumulate in accounts holding Algo are considered donations to the pool and do not contribute to the pool reserves in AMM V2 (unlike V1). As of 2022/05/14 the Participation Rewards program is finished and no further rewards are planned to be distributed by this mechanism. In the event that this mechanism is re-enabled in the future the pool accounts would accumulate rewards that would be claimable by the fee_collector address. It would be up to the protocols managers (development team or DAO) to decide how those rewards should be used.

Algo Pools

The AMM V2 protocol supports ASA-Algo pools just like V1. All references to ‘Assets’ in this document equally apply to Algo. The transaction details differ slightly whenever Algo is involved as Payment transactions are used instead of Asset Transfer.

Transaction Fees

All transaction fees must be paid by the sender of any of the outer transactions of an operation. The inner transaction fees cannot be paid by the pool account and app account.

Users

This document refers to ‘Users’ as the senders of assets and transactions to the pool and receivers of assets from the pool. The protocol does not place any restriction on the type of account that initiates a pool operation and therefore supports operations made by application accounts in the same way as regular accounts. Additionally there is no requirement that the sender of all transactions in an operation group is the same account.

The receiver of assets (Pool Tokens, swapped assets, removed assets, change, etc) is always the sender of the Application Call.

Transaction Groups & Composability

Each operation requires multiple transactions that must be part of the same atomic group. The exact indices of the transactions within the group or the size of the group is not specified by the protocol however so it is possible to create groups containing additional transactions before or after a swap for example. However relative indexing is used so the relative location of transactions within the group is specified and must be adhered to.

Operation transaction groups may also be created as inner transactions from within another Application. The only exception to this is the Bootstrap operation for creating pools, which requires a Smart Signature that cannot be used from an inner transaction.

Pool Discovery

Clients can discover the existence of pools in either of two ways;

How and Where to Buy token?

You will have to first buy one of the major cryptocurrencies, usually Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance (BNB)…

We will use Binance Exchange here as it is one of the largest crypto exchanges that accept fiat deposits.

Once you finished the KYC process. You will be asked to add a payment method. Here you can either choose to provide a credit/debit card or use a bank transfer, and buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance (BNB)…

☞ SIGN UP ON BINANCE

Once finished you will then need to make a BTC/ETH/USDT/BNB deposit to the exchange from Binance depending on the available market pairs. After the deposit is confirmed you may then purchase token from the exchange.

Top exchanges for token-coin trading. Follow instructions and make unlimited money

BinancePoloniexBitfinexHuobiMXCProBITGate.io

🔥 If you’re a beginner. I believe the article below will be useful to you ☞ What You Should Know Before Investing in Cryptocurrency - For Beginner

🔺DISCLAIMER: The Information in the post isn’t financial advice, is intended FOR GENERAL INFORMATION PURPOSES ONLY. Trading Cryptocurrency is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money.

I hope this post will help you. Don't forget to leave a like, comment and sharing it with others. Thank you!

#bitcoin #cryptocurrency #token #coin  

What is GEEK

Buddha Community

What is Tinyman Protocol
aaron silva

aaron silva

1622549018

SafeMoon Clone | Fundraising Defi Protocol like SafeMoon | DeFi protocol like SafeMoon

The fundraising DeFi protocol like SafeMoon has disrupted the entire blockchain industry by offering investors extensive benefits to reap profits in less time. The DeFi protocol like SafeMoon helps the investors to gain high liquidity, stable rewards with fewer investments. Investors can connect with the leading Infinite Block Tech to develop their DeFi protocol like SafeMoon cost-effectively.

#safemoon clone #fundraising defi protocol like safemoon #defi protocol like safemoon

Gordon  Taylor

Gordon Taylor

1657191840

Protocol-buffers: Protocol Buffers for Node.js

protocol-buffers

Protocol Buffers for Node.js

npm install protocol-buffers 

Usage

Assuming the following test.proto file exists

enum FOO {
  BAR = 1;
}

message Test {
  required float num  = 1;
  required string payload = 2;
}

message AnotherOne {
  repeated FOO list = 1;
}

Use the above proto file to encode/decode messages by doing

var protobuf = require('protocol-buffers')

// pass a proto file as a buffer/string or pass a parsed protobuf-schema object
var messages = protobuf(fs.readFileSync('test.proto'))

var buf = messages.Test.encode({
  num: 42,
  payload: 'hello world'
})

console.log(buf) // should print a buffer

To decode a message use Test.decode

var obj = messages.Test.decode(buf)
console.log(obj) // should print an object similar to above

Enums are accessed in the same way as messages

var buf = messages.AnotherOne.encode({
  list: [
    messages.FOO.BAR
  ]
})

Nested emums are accessed as properties on the corresponding message

var buf = message.SomeMessage.encode({
  list: [
    messages.SomeMessage.NESTED_ENUM.VALUE
  ]
})

See the Google Protocol Buffers docs for more information about the available types etc.

Compile to a file

Since v4 you can now compile your schemas to a JavaScript file you can require from Node. This means you do not have runtime parse the schemas, which is useful if using in the browser or on embedded devices. It also makes the dependency footprint a lot smaller.

# first install the cli tool
npm install -g protocol-buffers

# compile the schema
protocol-buffers test.proto -o messages.js

# then install the runtime dependency in the project
npm install --save protocol-buffers-encodings

That's it! Then in your application you can simply do

var messages = require('./messages')

var buf = messages.Test.encode({
  num: 42
})

The compilation functionality is also available as a JavaScript API for programmatic use:

var protobuf = require('protocol-buffers')

// protobuf.toJS() takes the same arguments as protobuf()
var js = protobuf.toJS(fs.readFileSync('test.proto'))
fs.writeFileSync('messages.js', js)

Imports

The cli tool supports protocol buffer imports by default.

Currently all imports are treated as public and the public/weak keywords not supported.

To use it programmatically you need to pass-in a filename & a resolveImport hooks:

var protobuf = require('protocol-buffers')
var messages = protobuf(null, {
  filename: 'initial.proto',
  resolveImport (filename) {
    // can return a Buffer, String or Schema
  }
})

Performance

This module is fast.

It uses code generation to build as fast as possible encoders/decoders for the protobuf schema. You can run the benchmarks yourself by doing npm run bench.

On my Macbook Air it gives the following results

Benchmarking JSON (baseline)
  Running object encoding benchmark...
  Encoded 1000000 objects in 2142 ms (466853 enc/s)

  Running object decoding benchmark...
  Decoded 1000000 objects in 970 ms (1030928 dec/s)

  Running object encoding+decoding benchmark...
  Encoded+decoded 1000000 objects in 3131 ms (319387 enc+dec/s)

Benchmarking protocol-buffers
  Running object encoding benchmark...
  Encoded 1000000 objects in 2089 ms (478698 enc/s)

  Running object decoding benchmark...
  Decoded 1000000 objects in 735 ms (1360544 dec/s)

  Running object encoding+decoding benchmark...
  Encoded+decoded 1000000 objects in 2826 ms (353857 enc+dec/s)

Note that JSON parsing/serialization in node is a native function that is really fast.

Leveldb encoding compatibility

Compiled protocol buffers messages are valid levelup encodings. This means you can pass them as valueEncoding and keyEncoding.

var level = require('level')
var db = level('db')

db.put('hello', {payload:'world'}, {valueEncoding:messages.Test}, function(err) {
  db.get('hello', {valueEncoding:messages.Test}, function(err, message) {
    console.log(message)
  })
})

Author: Mafintosh
Source Code: https://github.com/mafintosh/protocol-buffers 
License: MIT license

#node #javascript #protocol 

Ben Taylor

Ben Taylor

1650075893

Protocol in Crypto | Choose a Blockchain Protocol for Development DApp

In this post, you'll learn What is Protocol in Crypto? How to Choose a Blockchain Protocol for Development Your Project?

1. What is the Protocol in Crypto?

A protocol is a foundational layer of code that tells how something should work. Protocols are the foundation of any application.

A Protocol project in Crypto is a project dedicated to developing the optimal protocol for a specific purpose. To be faster, applications can use these protocols to develop their applications instead of rebuilding from scratch.

Features of Protocols in Crypto

The Protocols in Crypto (cryptocurrency protocol) only allow certain applications to work - sometimes only the application of the cryptocurrency itself. Protocols that provide security and access to a blockchain.

Protocol in Crypto allows users to manage their data. They allow individuals to create accounts - or wallets - on a protocol that can then be used to pay for services and perform financial transactions on other websites. This helps users not to be controlled by third parties in the storage of assets.

Excluding the Blockchain Platform (Blockchain is also a Protocol), Protocol projects will play a role in between Blockchain Platform and DApp . Dapps want to build on a certain Blockchain, they can use the services that Protocol projects provide.

Read more: What is a Decentralized Apps (DApp)?

Blockchain protocols can be divided into three different categories

The public protocols

  • A public protocol is available for anybody to download and launch a node to join the network. Like Ethereum, Bitcoin, and Stellar and there are many public protocols.

Private blockchains or private protocols

  • These chains are called private because they do not allow everyone to participate, and only entities approved by the network itself can join.

Hybrid protocols

  • These protocols are gaining popularity as enterprise-grade blockchain platforms because they offer the best of both private and public chains. When you build your application on a hybrid protocol, you can use both public and private chains. While some information can be stored on a private chain, consensus on another set of information can be achieved on a public chain. That is why it is referred to as a hybrid protocol.
  • As the application of Blockchain gets more mainstream, we will see more maturity in the protocols. For instance, the introduction of a protocol like Flow. Flow showed up because of the NFTs. It is a complete- NFT-dedicated protocol. Then there is XDC Network, a hybrid blockchain dedicated to transforming the Global Trade and Finance space with sustainable blockchain products. Then there’s Hyperledger, yet another area-specific protocol. So many protocols are graduating now; it is a continuous exercise.
  • Although there are numerous use cases of blockchain protocols, three major use cases that have transformed various world dynamins are Defi, followed by the NFT, and finally by the Metaverse. There will be a lot more protocol maturity focusing on these three categories as time goes on. We will see the introduction of new protocols and the development of ecosystems for existing protocols to strengthen the development of Defi, NFT, and Metaverse.

2. How to Choose a Blockchain Protocol for Development Your Project?

Protocol maturity and the emergence of new protocols lead to the crossroad where picking up a protocol or understanding the right choice gets tricky. One way to choose the right Blockchain for development is to understand what kind of application you want to develop.. Understanding blockchain applications can provide insights into the protocol intricacies.

1. Decentralized Finance

Defi or decentralized finance is an alternative ecosystem of financial services that replaces the role of central intermediaries prevailing in the existing traditional financial setups. Within the framework of Defi, the financial transactions or deals are not controlled by central entities rather regulated by smart contracts. So instead of relying on any central authorities or entities, basically smart contracts are written to define the business logic of the financial processes and then deploy them on top of the Blockchain. Defi Smart contracts can replace central financial intermediaries in exchanges, brokerage houses, loan systems, and banks.

Just like depositing your money into banks provides you with some sort of incentives in the form of interests, you get to earn incentives even in Defi. In a Defi system, your stake in your crypto assets and earn returns for participating in the system through staking.

From the development perspective, Defi applications require a lot more speed and executive power in the underlying blockchain protocol. For instance, consider a Defi lending app; it will require an immediate correction of amounts and transactions, so for such an application, the TPS or speed of the Blockchain make a difference. But not all defi applications need high speed. For instance, a defi application for staking may not require very real-time recording of transactions, as transactions can be scheduled to run every hour, every day, or whichever way it is required. So what characteristics are needed in the layer-1 blockchain protocol depends upon the type of application that is being factored in.

Another type of Defi application that is currently popular as blockchain use-cases are exchanges. Increasingly people use exchanges to participate in cryptocurrency trading. Exchanges are of two types: In centralized exchanges, a central entity is involved, and it does all the market making. Then there are decentralized exchanges powered by Blockchain. These exchanges are not controlled by one entity, and smart contracts take care of all the transaction processing.

2. Decentralized Storage

Decentralized storage is another big use case. Decentralized storage is built on layer one or two or layer three, depending on the type of the application. Cost optimization in terms of space and time is important when it comes to building decentralized storage because there is the complexity involved in storing something on the blockchain network, retrieving it, and then executing business logic on top of it.

There are a couple of different types of applications within decentralized storage. One is IPFS which is a layer-1 application kind of application. Then applications like FileCoin or Store are layer two applications built on top of IPFS, thus adding more features to IPFS.

3. Value Chain

A value chain is a very interesting use case of Blockchain from an enterprise perspective. In a business setup, wherein there are multiple entities involved, blockchain-based value chains allow all those business entities to participate in a trustless manner. They can participate in the consensus via their nodes.

One example of a blockchain-based value chain could be the end-to-end medical aid distribution network. Multiple entities get involved here, for instance, the procurement entities who take care of transferring aids from one country to another country. All these entities in the value chain network can participate in the blockchain consensus mechanism to ensure complete transparency, traceability, value exchange, and smooth flow of the cross-organizational processes. Value chain systems are typically built on permission Blockchain than on absolute private or public chains.

4. NFTs

Another major use-case of Blockchain that came out recently is Non-fungible token. NFTs are created to tokenize digital assets like digital arts, music, in-game assets, videos and photographs, gifs, and even tweets. As an immutable proof of ownership for digital assets, NFTs have found mass adoption, and there are a lot of consumers to it.

In the case of NFTs, the blockchain protocol is needed to build the NFT marketplaces, where NFTs are bought and sold. The protocol itself doesn’t have a huge role to play because, in the case of NFTs, it is all about storing the digital asset in the right place so that it can be viewed and validated. It is more of record-keeping and ensuring that the right business logic gets triggered whenever the exchange happens, or the value changes hands. That kind of application requires smart contracts compatibility and storage facility. Unfortunately, many of the protocols don’t have storage off the shelf, which is a debug.

Another major problem with NFTs that needs a solution is around the validation of that asset. A user buying an NFT from one blockchain protocol always wants to make sure that his NFT is scarce and not available anywhere else. So fraud prevention or validation is one problem that needs to be stalled.

The crux of the context is that a record-keeping application, whether it is NFT transaction records, legal records, health records, or educational records, has a different requirement that revolves around private or permissioned blocks where records are being updated all the time. Then they are being synchronized with third-party sources, and then the application is built on top of that data that is there on the decentralized network.

5. Blockchain for legacy systems

There are a lot of applications out there that are centralized applications. Also, there’s a lot of data stored on centralized databases or centralized storage. So how Blockchain can be introduced to those legacy systems.

In this particular type of use case, any important data from legacy systems that need validation are pushed to the Blockchain and stored on it. One of the key technical requirements in such use cases is the synchronization of offline or on-chain and off-chain data. So, here the requirement is of a quality protocol that can handle a lot of on-chain and off-chain data synchronization.

6. Metaverse

As many of us know, Metaverse is a digital world, where users have their digital avatars and maybe digital language. The concept of Metaverse is not new; it has existed in gaming platforms like Minecraft and Roblox. So, basically, Metaverse is a digital world where people chat, interact, and exchange value. But now, Metaverse is expanding beyond games and finding relevance into our other digital experiences, meant not just for entertainment but also work, networking, traveling, and a lot more.

Metaverse and adoption of beta version gaming will be a huge application for Blockchain. Already marketplaces are being created to buy digital assets for virtual worlds.

Facebook announcement and naming themselves as Meta is another story as it talks about one centralized Metaverse. However, if we talk about Metaverse as a blockchain use-case, then we cannot say that there will be just one Metaverse. There will be many; there will be multi-verses (multiple digital spaces) converging and facilitating interoperability from one world to another. So, for Metaverse development, the underlying protocol requires to be strong in terms of interoperability.

Read more: The Skills You Need To Become a Metaverse Developer

3. What factors to consider while choosing blockchain protocol for the development?

1. Speed

Speed has been considered and hyped on a lot whenever new protocols are being launched in the last few years; however, speed is not the only thing that matters. The relevance of the protocol’s speed depends on the type of application that is being developed. Let’s say if somebody is browsing NFTs, so here speed makes a difference. The user takes time choosing between various NFTs or digital assets, so they have to browse and make a choice. So, this needs to happen at a great speed. But for the transaction of buying one NFT, speed hardly makes any difference.

So depending upon the use case, the choice of protocol to be made. If you factor in speed, then speed should be your application requirement. You must wisely comprehend how much speed really impacts your application. If you are blindly going with one particular blockchain protocol for its higher speed factor, you could lose other features that your application requires.

2. Bridging

Users want more freedom and flexibility in moving their assets and money from one protocol; to another, so bridging is very important. When you are creating a blockchain application, any types of applications mentioned in the insight, it is essential to consider what kind of bridging support or compatibility your blockchain protocol can provide? Can it bridge your application to other applications?

There are bridging-focused protocols, like Polygon and Polkadot. These protocols have the concepts of side chains or Para chains to support the development of applications that can effectively bridge with other multiple protocols. Considering bridging at the onset of the development process, gives you the flexibility in the future to move your application from one protocol to another depending upon how protocol matures.

For instance, you create a stable coin on Ethereum but eventually want to move to the XDC network. Bridging ensures that you will be able to move your tokens and assets from one platform to another, which basically means going out from one community and reaching out to a new community. It’s a major shift in terms of ecosystem tools, SDKs, APIs, and all.

3. Energy efficiency

The energy efficiency of blockchain protocol is being widely discussed but not taken into much consideration. Companies, start-ups, or large companies may be aware of the importance of this factor, but when they try to build something new on a decentralized network or Blockchain, then the energy efficiency of a protocol is probably even not in their agenda unless the app is specifically meant for energy efficiency.

But energy has a huge impact on the environment, and for the Blockchain to be a sustainable technology in the future, it is definitely important to consider energy-efficient blockchains. Bitcoin adopts a proof of work consensus mechanism that requires a lot of mining, and it takes a huge amount of power consumption on various nodes. But then, other protocols like Hedera support proof of stake consensus algorithm and are very energy efficient. So, energy is one factor to consider while choosing a blockchain protocol.

4. Cost

Cost is certainly very important. The cost can be divided into two bars; one is execution cost, another is the cost of storage. How much of the application’s component needs to be executed on the network or how much data you are storing on-chain determines the cost. These factors have a huge impact on the cost because when you are working with smart contracts and saving data or executing smart contracts, money needs to be burned.

Read more: 6 Steps to Become a Blockchain Developer

Summary

Before choosing a protocol for the development, go deeper and try to understand what the protocol has to offer, its technology and various aspects, how traceable it is, its security quotient from attacks, its compliance, and its token economy.

#blockchain #protocol #cryptocurrency 

What is DAFI Protocol (DAFI) | What is DAFI Protocol token | What is DAFI token | DAFI Protocol ICO

About DAFI

DAFI enables networks to reward users, based on their adoption. Every decentralized network can soon create synthetic dTokens tied to the adoption of their protocol. DAFI can reward a network even when demand declines, by issuing synthetics that will reward user’s later —** instead of earlier**. Creating longer-term users for staking, liquidity and participation.

Same chains. Better users.

  • Every decentralized economy since Bitcoin, is forced to distribute large amounts of tokens to their network.
  • This incentive model creates an excess supply. Nobody likes this, it simply devalues the economy, without supporting early-users.
  • Instead of distributing a token directly, the Dafi protocol enables networks to create a synthetic in a reduced quantity. As demand rises, the synthetics (dToken) increase in quantity.
  • Dafi can incentivize early-users and maintain a network in bearish markets, without issuing large quantities of tokens.

Dafi (daf-ee)

Synthetic rewards

The DAFI token is staked for synthetics - which increase in quantity only as demand rises

Flavours

Every blockchain and cryptocurrency can create a synthetic to incentivize their users betterScarcity

DAFI rewards users even when demand is low, by actually enhancing scarcity - dToken rewards these users later by increasing in quantity when network demand rises

What is DAFI solving?

Networks can distribute synthetics to their users, instead of tokens. With Dafi, every decentralized economy can create and issue synthetics, which are later burned for their native token.

This means that we can now incentivize nodes, staking and even liquidity – in a reduced quantity. This solves the biggest issue within decentralized economies - rewarding the longer-term users later, instead of earlier.

DAFI’s work with Institutions

Reinventing the economics behind decentralization is a long journey. Over the recent years, Dafi has worked closely with reputed institutions to build something positively disruptive.

Since its inception, DAFI has tested different approaches to tackle the same problem — rewarding a network with less hyperinflation and less single-user control of value. This was a problem that was identified in the 2018 crash. DAFI has been closely tied with some of the most renowned institutions in England — which was key to providing guidance, events, and support.

source : https://www.youtube.com/watch?v=seQ2aHvP5rY

Incubated by Royal Bank of Scotland

DAFI initially broke grounds being incubated by a leading European Bank, the **National Westminster Bank **(otherwise known as the Royal Bank of Scotland). Natwest Bank is one of the largest UK-based banks, and a part of the prestigious RBS group.

The National Westminster Bank decided to support DAFI through consulting and accelerating the project under their FinTech arm. In fact, the new DAFI UK office was even located inside one of their branch building’s.

Featured in Natwest Business

DAFI protocol was also spotlighted in the December edition of Natwest’s monthly newsletter. This was instrumental in introducing DAFI to a whole new audience unaware of blockchain and decentralized finance. For this reason, only one utility of adaptive rewards was mentioned in their brief newsletter targeted for non-crypto people. It was very encouraging to see a reputed centralized institution (and a financial bank at that) accelerating this venture.

Close ties with academia

DAFI believes in embracing education surrounding Blockchain & the new models transforming the field. Dafi’s team worked with several Universities, Researchers and of course Students to foster conversations around the digital environment.

In late 2020, Dafi CEO Zain Rana presented the project at the University of Manchester and the University of Leeds. Breaking down the economics in how decentralized economies are created, including Bitcoin, and how they can be improved. It’s a leap in the vision of what DAFI is constructing to the next generation of students coming into this decentralized world.

On February 1, the prestigious University of York hosted DAFI’s team for a night of stimulating discussions and engaging conversations around blockchain economies. A forward-thinking University, known for Gavin Wood, co-founder of Ethereum and creator of **Polkadot **graduating there. The adoption-tied model of rewarding users was introduced, explained, and included showing DAFI’s synthetic testnet. Dafi’s team explained how the protocol could change the current inflation models of cryptocurrency and usher in a new system of rewards being tied to a network’s adoption, rather than based on time — like every network since Bitcoin.

Going forward, DAFI intends to carry on such collaborations with institutions and embrace such partnerships to further the decentralized agenda — creating economies with better users in the blockchain world.

DAFI Tokenomics Announcement

We recently announced the successful close of the DAFI private raise. The public sale whitelisting will begin today. Before we do that, we want to explain our tokenomics.

The DAFI Token

  • **Token name: **DAFI
  • **Total supply: **2,250,000,000
  • **Price: **$0.00333

Private sale

We structured our raise so that those who have supported us over a long period of time, and those who can add immense value to the ecosystem will benefit. The private round was filled by top tier funds and to strategic partners in the crypto ecosystem who would provide marketing support and open doors to help us grow the project. There will be a public round prior to listing.

Based on the raise as well as tokens distributed to critical stakeholders, on the TGE the initial circulating token supply will be 214M DAFI, with an initial market cap of $0.71M.

TGE information

  • **Public sale amount: **$150k
  • **Public sale tokens: **45M (2%)
  • **Market cap at TGE: **$0.715M
  • **Fully diluted valuation: **$7.50M
  • Total raise: $1.05M

DAFI Distribution

Our tokens are distributed in a way that supports the growth of the DAFI ecosystem. Approximately 27% goes towards all fundraising. 20% of the DAFI tokens are used as staking rewards for creating synthetics. 11% goes to the ecosystem reserve to incentivise adoption, growth and products created with DAFI.

The remainder is treasury, team, marketing and advisors.

Next 12 month distribution

The table below shows the vesting of DAFI over the next 12 months. We have designed the schedule to ensure our private and public sale participants receive tokens at the TGE. Participants in the private sale have their tokens vest weekly for six months (the first month after TGE is a cliff period) and five months for the strategic sale.

Ecosystem reserve vests weekly for 12 months and treasury for 24 months. Team and advisor tokens are locked for 1 year and then vest over a longer period.

Note: This does not include Staking (20%) which is distributed based on network adoption, not time.

DAFI Distribution over 3 years

Over a three year time period, you can see three distinct phases of token release. Phase 1 is the fundraised tokens unlock, Phase 2 is the ecosystem, marketing and treasury unlock which is slower and Phase 3 is the slowest with the team and advisory unlock.

Public Sale

The public sale will take place on DAO Maker in a few weeks. The next announcement are the steps to apply to be whitelisted. Make sure you only follow the official information from DAFI’s social channels below.

source : https://www.youtube.com/watch?v=pib571Y7_QI

Would you like to earn TOKEN right now! ☞ CLICK HERE

How and Where to Buy DAFI Protocol (DAFI)?

You will have to first buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT), BNB, BUSD …

We will use Binance Exchange here as it is one of the largest crypto exchanges that accept fiat deposits.

Binance is a popular cryptocurrency exchange which was started in China but then moved their headquarters to the crypto-friendly Island of Malta in the EU. Binance is popular for its crypto to crypto exchange services. Binance exploded onto the scene in the mania of 2017 and has since gone on to become the top crypto exchange in the world.

Once you finished the KYC process. You will be asked to add a payment method. Here you can either choose to provide a credit/debit card or use a bank transfer, and buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT), BNB, BUSD

SIGN UP ON BINANCE

Step by Step Guide : What is Binance | How to Create an account on Binance (Updated 2021)

After the deposit is confirmed you may then purchase DAFI from the Website: https://www.dafiprotocol.io/#token

Apart from the exchange(s) above, there are a few popular crypto exchanges where they have decent daily trading volumes and a huge user base. This will ensure you will be able to sell your coins at any time and the fees will usually be lower. It is suggested that you also register on these exchanges since once DAFI gets listed there it will attract a large amount of trading volumes from the users there, that means you will be having some great trading opportunities!

Top exchanges for token-coin trading. Follow instructions and make unlimited money

https://www.binance.com
https://www.bittrex.com
https://www.poloniex.com
https://www.bitfinex.com
https://www.huobi.com
https://www.mxc.ai
https://www.probit.com
https://www.gate.io
https://www.coinbase.com

Find more information DAFI

WebsiteWhitepaperSocial ChannelSocial Channel 2Social Channel 3Message Board

🔺DISCLAIMER: Trading Cryptocurrency is VERY risky. Make sure that you understand these risks if you are a beginner. The Information in the post is my OPINION and not financial advice. You are responsible for what you do with your funds

Learn about Cryptocurrency in this article ☞ What You Should Know Before Investing in Cryptocurrency - For Beginner

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#blockchain #bitcoin #dafi protocol #dafi

John Garcia

John Garcia

1624207080

cVault, Enzyme, Hard Protocol, El Salvador's Financial Future & SHIB (Crypto News)

Welcome back to Daily Defi, today we kick things off with Defi Pulse & Juicy NFTs. Then move into an article comparing Shiba Inu to Doge (didn’t want to talk about this) and an additional article on Shanghai man’t thoughts on the after effects of El Salvador adopting bitcoin as legal tender. Lastly we review three altcoins outperforming the whole market: Enzyme, cVault Finance & Hard Protocol. Long DeFi, short the bankers.
📺 The video in this post was made by Invest Global
The origin of the article: https://www.youtube.com/watch?v=Jp7kpPBucXY
🔺 DISCLAIMER: The article is for information sharing. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Not investment advice or legal advice.
Cryptocurrency trading is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money
🔥 If you’re a beginner. I believe the article below will be useful to you ☞ What You Should Know Before Investing in Cryptocurrency - For Beginner
⭐ ⭐ ⭐The project is of interest to the community. Join to Get free ‘GEEK coin’ (GEEKCASH coin)!
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#bitcoin #blockchain #crypto news #shib #hard protocol #daily defi #147: cvault, enzyme, hard protocol, el salvador's financial future & shib (crypto news)