Dymension introduces a revolutionary concept—RollApps. These modular, application-specific blockchains are set to redefine scalability and efficiency, marking a new paradigm in the blockchain landscape. Dymension's vision encompasses higher throughput, lower latency, and a streamlined deployment process, offering developers unprecedented opportunities for innovation and efficiency.
Dymension was born out of a need to address the persistent challenges faced by the industry: slow transaction speeds, high costs, and inefficiencies. Unlike traditional approaches, Dymension takes a vertical approach, optimizing throughput and latency to unlock the full potential of the Metaverse. Drawing inspiration from the Cosmos ecosystem, Dymension focuses on scalability through the deployment of RollApps, offering a unique solution to the scalability dilemma.
RollApps, Dymension's groundbreaking solution for scaling, are autonomous, application-specific blockchains operating with minimal consensus overhead. Empowered by the Dymension Hub, an Inter-Blockchain Communication (IBC)-enabled hub, RollApps connect seamlessly with other IBC-enabled chains, fostering a network effect that enhances the overall ecosystem. This interconnectedness is pivotal to Dymension's mission, emphasizing the importance of integration and collaboration.
Embracing ZK Rollups and Optimistic Rollups
Dymension's RollApps adopt a smart approach to ensure secure and efficient transactions by combining the strengths of Zero-Knowledge Rollups (ZK Rollups) and Optimistic Rollups.
Zero-Knowledge Rollups (ZK Rollups): Boosting Scalability with Privacy
ZK Rollups use smart cryptographic tricks to verify transactions without revealing specific details. This clever technique makes transactions faster and more scalable while adding a layer of privacy.
Optimistic Rollups: Trusting Transaction Integrity
Optimistic Rollups start with the assumption that transactions are valid, trusting in the honesty of the network. There's a short verification period where anyone can challenge a transaction, providing evidence if something seems off. This optimistically speeds up transaction processing.
By bringing together ZK Rollups and Optimistic Rollups, Dymension ensures a well-rounded solution for secure, speedy, and scalable transactions in its ecosystem. This smart blend tackles various aspects of transaction validation, reinforcing Dymension's commitment to a resilient and efficient decentralized future.
RollApps on Dymension Present a Better Solution
RollApps are Dymension’s answer to the problem of finding an efficient scaling solution, allowing for higher throughput, lower latency, and a seamless deployment process for developers. RollApps built on the Dymension settlement hub receive multiple significant benefits or advantages as Dymension aims to provide the highest-quality service by offering the security of Dymension’s settlement layer, an environment for optimal performance, access to liquidity, digital autonomy, and more. Below is a list of major benefits received from deploying RollApps on Dymension:
1. Security: As RollApps built on Dymension are enshrined rollups (native RollApp logic is embedded within the settlement hub), they receive the same level of security as the settlement layer. Also, RollApps deployed on Dymension do not share the risks of utilizing bridges with many trust assumptions or smart contracts as these application-specific rollups are native to the Dymension L1.
2. Validator Network: Dymension eliminates the overhead of bootstrapping a *validator network when spinning up new Cosmos chains. Moreover, it reduces the chain’s security budget and minimizes token dilution, as projects don’t need to incentivize validator node participation when chains are first launched. By curbing over-issuance, Dymension enables more robust tokenomics for its RollApps.
3. Optimal Performance Environment: RollApps outsource consensus to the settlement hub allowing them to focus solely on increasing throughput and reducing latency.
4. Access to Liquidity: Dymension has a natively embedded Automated Market Maker (AMM) providing RollApps with shared liquidity layered on shared security. Dymension will provide a market for RollApp tokens, which in turn will provide access to RollApp liquidity to the rest of the Cosmos ecosystem.
5. Digital Autonomy: One of the most intriguing advantages of Dymension is the digital autonomy it provides. Users pay network-related fees directly to RollApps (not Dymension) in their native token or any other token deemed acceptable by the specific RollApp’s business logic, supporting the sustainability of each RollApp by enabling more use cases and garnering greater value accrual for token holders.
6. Interoperability/ Inter-RollApp Communication: RollApps built on Dymension are equipped with Inter-RollApp Communication (IRC), allowing them to seamlessly communicate with other RollApps as well as all IBC-enabled chains. This attribute is particularly important as interchain communication (communication and data exchange among blockchain networks) has been one of the most important issues challenging blockchains today.
7. RollApp Development Kit (RDK): Dymension created a custom-made RollApp Development Kit (RDK), forked from the Cosmos SDK, that allows developers to seamlessly deploy RollApps on top of the settlement layer. The RDK includes pre-packaged modules building off the SDK that break down the process of building and ultimately deploying RollApps on Dymension.
Enhancing Dymension's Ecosystem with Cosmos Interchain Security and EigenLayer
Dymension's scalability journey is fortified by Cosmos Interchain Security and EigenLayer. These elements bring additional layers of security, interoperability, and computational services to Dymension's innovative approach.
Cosmos Interchain Security
Cosmos Interchain Security allows validators of the Cosmos Hub to validate other chains. Essentially, this allows for the reuse of the Cosmos Hub validator set and staked collateral to secure other Cosmos chains. This provides an increase in economic security with the upper bound of Cosmos Hub’s cost of corruption, gives consumer chains a faster validator network setup and path to market, and aligns consumer chains with Cosmos Hub and ATOM token.
While Interchain Security makes validator bootstrapping easier and increases the economic security for consumer chains, it does not scale the Cosmos network. Interchain security adds work to Cosmos Hub validators, and Cosmos’ overall throughput will still be limited to the hardware capabilities of the Cosmos Hub validators.
EigenLayer will provide validators/computation as a service to any chain or middleware (oracles, bridges, sidechain). Ethereum validators re-stake their ETH into EigenLayer smart contracts to perform other duties to earn rewards while taking on more slashing risks on the same underlying ETH. This allows the bootstrapping of validator and trust networks for middleware applications like oracles and incentive alignment with Ethereum but is currently limited to the Ethereum ecosystem.
EigenLayer’s data availability layer, which asserts 15MB/s data transfer, can be a potential DA layer option for rollups, but communication with the DA layer will require more trust assumptions than using Celestia’s IBC-enabled DA layer.
Entering a New Paradigm, a New Dymension
Modular blockchains offer compelling advantages over strictly monolithic blockchains and have emerged as critical infrastructure for powering a multi-chain world. Within a modular architecture Dymension minimizes the workload handled by the execution layer by decoupling the settlement layer.
The Cosmos ecosystem has already become a home for many developers seeking autonomous but composable environments, becoming one of the most scalable and secure blockchain ecosystems. Dymension pushes the boundaries of scale for Cosmos by extending scale vertically. This is a natural path forward for Cosmos in parallel with other modular architecture developments such as Celestia’s data availability.
Dymension is a marriage and implementation of Ethereum’s rollup-centric vision that focuses on shared security and liquidity with Cosmos’ vision for greater connectivity, autonomy and SDK-based development. We are excited to be supporting the team and look forward to the ambitious roadmap of developments they are executing on.
Dymension Airdrop: Cross-chain Inclusion
Dymension has completed their genesis airdrop, allowing more than a million crypto users and NFT owners across various chains to claim DYM tokens. This airdrop is a testament to Dymension's commitment to community engagement and wider token distribution.
Eligibility and Token Distribution
The airdrop was inclusive, encompassing users who staked the TIA token in Celestia, users of Ethereum layer-2 networks Arbitrum, Optimism, Base, and the upcoming Blast, Cosmos Hub and Stride users, and users of the Osmosis decentralized exchange (DEX). Additionally, more than 500,000 Solana users, participants in cross-chain bridge Wormhole, Tensor, Drip.Haus, and NFT owners, including Pudgy Penguins, Mad Lads, Tensorians, and Bad Kids, are eligible to claim DYM tokens.
Coming Soon: DYM-PERP on Demex
Demex will integrate DYM for perpetual trading, allowing traders to engage in long or short positions on the token, capitalizing on market fluctuations and volatility without the need for asset ownership. The DYM-PERP market on Demex will be linked to the Celestia Ecosystem Perp Pool, ensuring robust liquidity, optimal pricing, and swift order execution.
Empowering Traders and Market Makers
Demex's deliberation on the inclusion of the DYM-PERP market aims to empower traders by offering an exceptionally liquid order book and a dynamic market for executing trades. The integration with the Celestia Ecosystem Perp Pool not only enhances liquidity but also contributes to better pricing, aligning closely with the oracle price for a smooth trading experience.
For liquidity providers, this initiative presents a unique opportunity to actively participate as market makers. By becoming contributors to the liquidity pool, they can earn a share of market-making fees, including funding fees and traders' profit and loss, further enriching their engagement with the market dynamics.
Dymension introduces RollApps to revolutionize scalability. With a focus on vertical scaling inspired by Cosmos, Dymension's autonomous blockchains, RollApps, operate through the Dymension Hub, fostering collaboration across chains. Using ZK Rollups and Optimistic Rollups, Dymension ensures efficiency and security. An inclusive airdrop and collaboration with Demex underline its commitment to community engagement. As the era of RollApps unfolds, Dymension stands as a key player, shaping the decentralized landscape with transformative developments. Demex will soon list DYM-PERP, creating opportunities for traders to make the trade of a lifetime.