Dymension Review: Layer 1 Blockchain Promotes Interaction With Cosmos

February 8, 2024 - Around 12 mins mins to read

With the development of modular blockchain, it allows the separation of functional layers, which enhances scalability and flexibility. Dymension is a Layer 1 blockchain that is developing in this direction. Let’s learn about this project with Coincu through the Dymension Review article.

Dymension Review: Layer 1 Blockchain Promotes Interaction With Cosmos 8

Table Of Contents

What is Dymension?
Structure of Dymension
Features of Dymension
Highlights of Dymension
Working mechanism of IBC Bridge and Dymension
DYM token
Dymension's team
Investors and Partners of Dymension
Conclusion of Dymension Review

What is Dymension?

Dymension is a Layer 1 blockchain, meticulously designed on the principles of the modular blockchain model. This innovative platform, utilizing the Cosmos toolkit (Cosmos SDK), boasts a robust infrastructure that seamlessly interacts with the broader Cosmos ecosystem through the Inter-Blockchain Communication (IBC) bridge.

At the heart of the Dymension network lies its unique architecture, which incorporates multiple Rollup applications, aptly named RollApps. These RollApps serve as dynamic gateways for users to directly engage with a diverse array of functionalities, ranging from gaming platforms to decentralized finance (DeFi) solutions and non-fungible tokens (NFTs).

Dymension Review: Layer 1 Blockchain Promotes Interaction With Cosmos 9

Dymension’s distinguishing feature is its commitment to a Blockchain Modular structure. This strategic design choice involves the compartmentalization of various components, allowing for the replacement or upgrade of each part independently.

Built on the Cosmos SDK, Dymension leverages the power of the Proof-of-Stake consensus mechanism. The platform seamlessly integrates the Tendermint software to bridge the Network Layer with the Consensus Layer, resulting in a user-friendly interface that simplifies the construction process.

A key aspect of Dymension’s architecture is its role as the foundation for RollApp development. By offering a robust underlying layer encompassing Consensus and Settlement functionalities, Dymension facilitates connectivity to Celestia‘s DA layer, Avail. Next, the Dymension Review article will explore the structures of this blockchain.

Structure of Dymension

RollApp: Transforming Layer 2 Rollups with Dymension Technology

RollApp is a Layer 2 Rollup, leveraging the robust foundation of Layer 1 Dymension, which functions as a dApp chain. What sets RollApp apart is its integration of the Dymension RDK toolkit, drawing inspiration from the proven Cosmos SDK and introducing numerous enhancements tailored for a Rollup Chain.

Operating primarily through Sequencers, RollApp introduces a distinctive feature where these Sequencers must stake or lock shares using DYM Tokens, mirroring the Validator system on Layer 1. This innovative mechanism adds an extra layer of security to the network.

In the event of Sequencer misconduct, a proportional stake reduction occurs, rewarding the prover and simultaneously burning the deducted tokens. This not only incentivizes responsible behavior but also ensures a robust and trustworthy ecosystem for decentralized applications.

Dymension Hub: A Cosmos SDK-Powered Proof-of-Stake Chain

On a parallel front, Dymension Hub takes center stage as a Proof-of-Stake chain, adopting the well-established Cosmos SDK and employing the Tendermint Core state replication model for networking and consensus. Departing from the traditional monolithic blockchain structure, Dymension’s payment layer, known as the Dymension Hub, is meticulously crafted to deliver an optimized service for aggregation.

The distinctive architecture of Dymension Hub strategically places the composite service logic in the resolution layer, creating a centralized hub for native interoperability between various RollApps. This design choice emphasizes efficiency and seamless interaction between decentralized applications within the Dymension ecosystem.

Additionally, Dymension uses Celestia’s Data Availability (DA) layer for data management, as well as using the RollApp Development Kit (RDK) based on the Cosmos SDK to support efficient application development.

Data Availability Networks (DA Networks): The Decentralized Database for RollApps

Functioning as a robust database, Data Availability Networks (DA Networks) take center stage by providing essential data to RollApps on demand. Within Dymension’s ecosystem, the DA network serves as a temporary storage solution, strategically distributing data to optimize cost-effectiveness and decentralization. Comparable to a traditional database, this network operates in a distributed fashion, offering temporary and easily accessible data storage crucial for the smooth functioning of the overall network.

The decentralized nature of DA Networks ensures that vital data is not only readily available but also securely stored, enhancing the reliability and efficiency of RollApps. This innovative approach not only contributes to a more resilient blockchain infrastructure but also aligns with the ongoing efforts to create a decentralized data ecosystem.

RollApp Development Kit (RDK): Accelerating RollApps Development with Cosmos SDK

Stepping into the realm of decentralized application development, the RollApp Development Kit (RDK) stands out as a game-changer. Built on the foundation of the Cosmos SDK, RDK is designed to support RollApps developers by offering pre-built modules that significantly expedite the application building process.

By leveraging the well-established Cosmos SDK, RDK streamlines the development journey, providing developers with a comprehensive set of tools and modules. This not only accelerates the creation of RollApps but also ensures the scalability and compatibility of these applications within the broader blockchain ecosystem. RDK’s incorporation of pre-built modules aligns with its commitment to fostering innovation and efficiency in the development of decentralized applications.

Now, this Dymension Review article will help you learn more about the project’s features.

Features of Dymension

Here’s a breakdown of the distinctive features that set Dymension apart:

Dymension employs state-of-the-art blockchain technology, integrating a Proof-of-Stake consensus mechanism provided by SDK. This mechanism seamlessly connects the centralized network layer with the consensus layer using Tendermint software. The result is an intuitive and user-friendly interface for both developers and users alike.

The project boasts a modular structure, allowing users to choose their execution environment. This flexibility extends to options such as EVMOS EVM, Polaris EVM, and CosmWasm, offering diverse execution environments at a low cost. This modular approach enhances adaptability and scalability within the Dymension ecosystem.

Dymension incorporates Optimistic Rollup technology alongside a robust Fraud Proof mechanism to verify transactions. This ensures a secure and efficient environment, minimizing the risk of fraudulent activities within the platform.

Central to the Dymension ecosystem is the DYM token. Functioning as a utility, the DYM token is used for transaction fees and actively participates in platform governance through voting mechanisms. Additionally, an Automated Market Maker (AMM) facilitates liquidity for seamless token trading on the platform.

Dymension introduces an IBC Bridge, enabling the transfer of assets between RollApps and layer 1. This process involves locking tokens on the source chain and generating new tokens on the destination chain. The entire trading process is meticulously verified by Dymension Hub, ensuring a heightened level of safety and security for users.

Swap: AMM allows users to trade tokens.
Pools: Aggregation of liquidity pools allowing users to provide liquidity to existing pools or create new pools.
Assets: Aggregate information related to tokens in the system such as token price, 7-day price fluctuation and liquidity.

The Hub page emerges as the central dashboard for enthusiasts and stakeholders, offering a consolidated view of various critical aspects of the Dymension blockchain. Among the featured statistics are block time, the number of RollApps, the total value of assets transferred through the Inter-Blockchain Communication (IBC) bridge, the overall supply of DYM tokens, and in-depth information about validators and staking activities.

This comprehensive overview empowers users to navigate and understand the intricate workings of the Dymension blockchain efficiently. From real-time data on block creation times to a snapshot of the network’s assets and token distribution, the Hub page serves as a one-stop-shop for blockchain analytics.

The RollApp page takes center stage as an integral component of Dymension’s commitment to transparency and user engagement. Focused on the RollApp applications within the Dymension ecosystem, this page presents a compilation of essential data and statistics for users and developers alike.

Key metrics highlighted on the RollApp page include:

Total TVL on RollApps: Providing a snapshot of the Total Value Locked (TVL) on RollApps, offering insights into the economic activity within the applications.
RollApps Listed/Deployed: Showcasing the number of RollApps listed or deployed, indicative of the growing diversity and richness of the Dymension application ecosystem.
Total IBC Transfers: Offering a comprehensive look at the total value of assets transferred through the IBC bridge, indicating the extent of interoperability and integration with other blockchain networks.
Total Active Addresses: Highlighting the total number of active wallet addresses, a key metric to gauge user engagement and adoption.

Highlights of Dymension

Here’s a closer look at the highlughts that make Dymension stand out:

At the core of Dymension’s architecture is its commitment to decentralization. The Dymension Blockchain operates on a distributed validator network, centered around the Dymension Hub. This approach not only authenticates transactions but also ensures the accuracy and integrity of data, reinforcing the platform’s dedication to a decentralized and secure environment.

Dymension adopts a cost-effective strategy by temporarily storing RollApp data off-chain on the DA Network layer, located outside the Dymension blockchain. This innovative approach enhances cost efficiency and scalability for RollApps within the network. By optimizing data storage, Dymension sets itself apart in delivering an economically viable solution for developers and users alike.

While currently operating on the testnet, Dymension impresses users with an interface renowned for its intuitiveness, friendliness, and ease of use. This user-centric design ensures a seamless experience for both novice and experienced users, setting the stage for a smooth transition to the mainnet in the future.

Dymension facilitates developers with an easy-to-deploy RollApp Development Kit (RDK toolkit). This toolkit, accompanied by detailed instructions, empowers developers to design, adapt, and deploy RollApps with unparalleled ease. The emphasis on user-friendly tools reinforces Dymension’s commitment to fostering a developer-friendly ecosystem.

Working mechanism of IBC Bridge and Dymension

Transfer assets with IBC Bridge

Through the utilization of the IBC Bridge, RollApps can now effortlessly engage in secure and reliable communication, as well as transfer assets across various chains within the Cosmos network. This process involves locking assets on the source chain, ensuring their safety, while simultaneously minting new assets on the destination chain.

The IBC Bridge not only streamlines communication but also enhances the security of transactions. Each transfer is meticulously confirmed by the Dymension Hub, ensuring a remarkably high level of safety and security throughout the process.

Dymension’s working mechanism

Here’s a breakdown of Dymension’s working mechanism:

Users initiate transactions on the RollApp platform, setting the process in motion.

Transactions undergo thorough verification by the Sequencer before being meticulously collected into a block. This step ensures the integrity and accuracy of each transaction.

The Sequencer sends the formed block as Call Data to the Dymension Hub, concurrently transmitting the block’s transaction proof to the DA (Data Availability) layer.

Upon receiving the block, the DA layer returns the path to the stored evidence. The Sequencer then verifies the current state of the RollApp, confirming the State Root and transmitting both the state information and evidence path to the Dymension Hub.

This intricately designed process not only guarantees the security and validity of each transaction but also optimizes the generation of blocks. The use of a Sequencer ensures that blocks are produced optimally without the need for active network validation, resulting in low request times.

Furthermore, this streamlined approach allows RollApps to maintain an impressive average latency of 0.2 seconds with a Transactions Per Second (TPS) capacity of up to 20,000 transactions. This remarkable speed and efficiency represent a significant leap forward in transaction processing within the blockchain sphere, setting new standards for user experience.

DYM token

DYM is the backbone of the Dymension blockchain, embodying a multifaceted role crucial to the overall health of the platform. Beyond being a transactional medium, DYM plays a fundamental role in underpinning the security protocols, fueling growth initiatives, and ensuring the sustained vitality of RollApps within the ecosystem.

Key Metrics

Token name: Dymension
Ticker: DYM
Blockchain: Updating…
Contract: Updating…
Token type: Updating…
Total Supply: 1,000,000,000 DYM.
Circulating Supply: Updating….

DYM airdrop

Dymension launched the Genesis Rolldrop Airdrop program for users. This initiative aims to reward participants based on specific criteria, distributing a total of 70,000,000 DYM, which accounts for 7% of the token supply.

The Genesis Rolldrop program outlines various conditions for users to be eligible for the airdrop, ensuring a diverse and engaged community. The allocation includes the following categories:

Celestia Stakers: Users who have staked 1 $TIA or more as of the snapshot taken on December 19, 2023.
Ethereum L2s Users: Active wallet addresses on Optimism, Base, Arbitrum, and Blast, encompassing both bridged amounts and blockchain activities.
Cosmos Stakers: Individuals who have staked more than 10 OSMO as of the snapshot date, December 19, 2023.
ATOM Stakers: Users who have staked more than 1 ATOM, including stATOM, at the snapshot taken on December 19, 2023.
Solana Wallet Addresses: Active wallet addresses on Solana with holdings exceeding 1 SOL, as captured in the snapshot on December 19, 2023.
NFT Holders: Holders of specific NFTs, including Mad Lads, Pudgy Penguins, Bad Kids, and Tensorians, are also eligible for the Genesis Rolldrop program.

To verify eligibility, users can check the validity of their participation at https://genesis.dysmension.xyz/.

More detailed information about tokenomics is published by the project here.

Dymension’s team

Dymension’s team members do not have too much information, except that they are Pudgy Penguins holders.

Investors and Partners of Dymension

On February 9, 2023, Dymension successfully raised $6.7 million in capital during a private round led by Big Brain Holdings and Stratos, with participation from Matchbox DAO, Shalom Meckenzie of DraftKings, and other investors. The funding was obtained through a simple agreement for future tokens (SAFT).

The round was closed late last year amid widespread cryptocurrency collapses. At this time, there is no information available regarding the project team or official partners of Dymension.

Conclusion of Dymension Review

The Cosmos ecosystem provides an ideal foundation for Dymension’s modular design, fostering an environment that encourages collaboration and seamless integration with other blockchain projects.

Specifically, Dymension’s move towards a modular structure aligns with a broader trend, as even Ethereum, one of the most prominent players in the blockchain arena, is contemplating a shift towards becoming a Modular Blockchain. Hopefully Coincu‘s Dymension Review article has helped you gain more useful information.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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