As DeFi develops, the availability and cost as well as the scalability and security of financial services become much more important. We compare the current mainstream common chain in several dimensions, which include solution performance, cross-chain extensibility, value capture and economic model.
Ethereum, as the main carrier of DeFi services in the current market, faces with increasing congestion and high user fees, limiting DeFi’s development. It focuses on security and decentralization, with a throughput of 15 or so and nearly 2000 in the upcoming ETH2.0.
Ethereum competitors, such as EOS, Cardano or Dfinity, tend to be in the TPS100–3000, given the trade-off between decentralization and security. Dipper Network adopts the Tendermint consensus and secure random number scheme to improve the security and throughput of the network. Experimental test shows that it can reach up to TPS10000, which may bring new DeFi paradigm and optimize user experience.
Cosmos’s cross-chain scheme has two models: one is the IBC protocol in homogeneous networks, and the other is the bi-directional anchoring scheme for heterogeneous networks. Its design objective is the inter-operability of assets, with only a single service per Zone within its ecology, making the overall security decentralized.
Polkadot reaches the final consensus in the relay chain, and uses the economic game mechanism to restrict and constrain network participants. Its design objective is to achieve strong consistency and inter-operability, which, however, reduces the overall performance of the network. besides, It also needs a standard communication protocol for cross-parachain transactions.
For the sake of extensibility and service diversity, Dipper Network adopts Layer2 expansion scheme, supports IBC protocol, and serves as an intelligent contract platform to reduce external dependence, improving the security of interaction within cosmos ecology, and becoming a reliable Hub.Dipper Network connects Polkadot network through the cross-chain way of transfer bridge and relay chain, which will further support a variety of cross-chain schemes.
Because of the high cost of blockchain storage, the need of continuous storage, and the fact that the fee is charged in a lump sum, Bitcoin, Ethereum and many intelligent contract platforms lacks feasible scheme for the time cost of charging storage, leading to the rapid expansion of storage space, which is particularly evident in Ethereum. This situation will also lead to the security problem of the platform: the platform cannot effectively capture the value of DApp, thus reducing the attack cost of the platform relatively.
Dipper Network maps DIP with the storage space of the network. Users need to pledge DIP to lease a certain part of the storage, such as 1,024 DIP for 10MB storage. Though this DIP of pledging cannot benefit from Staking, it is paid by the user for the use of storage. This design will enable DApp to better associate with the platform, which can not only develop together but also improve the security of the platform.
In the economic models of Bitcoin and Ethereum, the system’s original currency functions as the medium of exchange and the store of value. The former mechanism for transaction bidding sorting will lead to growing expensive transaction fees;The latter is a smart contract platform, whose economic model is designed to facilitate transactions. Users only need to pay one-time storage fees, however, this cannot effectively capture the value on the chain.
Excepts the function as a medium of exchange and a store of value, the Cosmos’ original token works as also a certificate of interest and also a collateral to keep the network running properly through its staking mechanism. In fact, Cosmos has gone some way to solving the problem of security and liquidity by splitting token’s functions as mortgage and as transaction fee.
Dipper Network will be in single currency, which means the DIP will be used as medium of exchange, store of value and security certificate and proof of interest. Under the constant total amount, the staking mechanism is used to dynamically adjust the market supply within a certain period of time to maintain the stable development of the platform.
All in all, the way of governance which is based on underlying network and the underlying financial protocols on the chain will further improve the overall security of the platform and reduce the extreme risks of the underlying financial protocols.
Since the birth of Bitcoin, researchers have been exploring in the dimensions of extensibility, decentralization and security to achieve high availability and neutrality. The upcoming launches of Cosmos, Algorand, Solana and Polkadot, Ethereum 2.0, and Dipper Network, at the same time, The rise of DeFi, forming an entirely new field both announce the best scenario for the public chain.The question is what kind of design best suits DeFi to better serve the public.
Bitcoin is a sign of Times because it is the first Defi application, and its successor Ethereum has brought multiple assets and lay a thriving foundation for DeFi through smart contracts and will be one of the key carriers for DeFi in a few years.
Ethereum is constrained by throughput and historical baggage and cannot meet the growing needs of DeFi. Thus DeFi developers will look for alternative platforms, which will increase the cost and uncertainty of transfer. It is to be expected that ethereum’s competitors, with some advantages, will take a certain market share. In the foreseeable future, there will be 1–2 common chains and some characteristic vertical common chains in the whole market. They need to connect with each other and also with the traditional network, so there will be a great practical demand for cross-chain.
The advantages of the Dipper Network are cross-chain interoperability and unlimited liquidity of assets.Compared with ETH, the time payment mechanism for storage will effectively reduce the speed of block expansion and help effectively capture value on the chain; Compared with Cosmos, smart contracts have been added, extensibility has been improved, and network effects have been enhanced through the diversity of services.
Besides,Dipper Network builds a functional basic financial agreement. It forms a complete financial closed loop from synthetic assets, DEX, lending applications to future goods and insurance services, and provides frictionless financial services for all blockchains, which is helpful to attract developers of all kinds of open financial fields and to provide more imagination space for DeFi.
Brief introduction of Dipper Network
Dipper Network is a decentralized financial Network, which aims at building a cross-chain ecological financial center through the construction of sound basic financial agreements. It has redesigned the economic model of the public chain, and it will help the platform capture the value of assets on the chain by associating DIP with storage and adopting the mechanism of Staking. This design will be conducive to the development of mutualism between the platform and the application, so as to improve the ecological value. This project was originated from Captain’s deep thinking on the blockchain industry in May 2019, and the feasible analysis and architectural design of the overall scheme were completed in July 2019. It is launched in September 2019 by Dipper Labs. The core team members include Huang Zhiyong (Co-founder, former chief researcher of Gongxinbao), Luo Tiangjia (CTO, former technology expert of Huawei), Zhu Liting (blockchain technology consultant, former chief architect of Gongxinbao), Joy (COO, operating director of internationally renowned educational institutions).
In September 2019, Dipper network released testnet1.0, which supports intelligent contracts.
In February 2020, Dipper network released testnet2.0 and technology development document v1.0.
In April 2020, launched TestNet3.0 and completed the prototype design of DipBank, DipSYN and DipDex.
In June 2020, the prototype development of Golang and Soldesert of DipBank was completed.
Project official site: https://dippernetwork.com