What is Dymension? The next Modular Blockchain on the Cosmos ecosystem

1. Context

In the rapidly evolving world of Blockchain, scalability has become a significant challenge for existing Blockchain systems. Blockchains like Bitcoin, Ethereum, and Solana face difficulties in scaling, imposing notable limitations.

For such foundational blockchains, the challenge is to take on all important functional layers within the blockchain system. This includes handling the Data Availability Layer, Consensus Layer, Execution Layer, and other layers. Each layer plays an important role in the confirmation and processing of transactions on the blockchain network.

However, with the development of modular blockchains, a new approach is proposed. Instead of a unified system handling all functions, modular blockchains allow the separation of functional layers, enhancing scalability and flexibility. This reduces the pressure on each functional layer and opens avenues for more extensive integration and development.

This shows the necessity for innovation in blockchain architecture to tackle the growing challenge of scalability, providing improved performance and scalability for the blockchain world.

2. What is Dymension?

Dymension is a Modular Blockchain built on the Cosmos SDK, utilizing a modular architecture to divide essential functional layers of a blockchain. Described as a system of modular blockchains, Dymension introduces what is called "RollApps."

RollApps are software optimized for specific applications. Instead of having to follow a set of general rules of the blockchain network, RollApps remain independent and have individual control over how they operate. It can be imagined as a flexible "template" for each application, where each application can have its own token and manage how this token is used.

A RollApp executes transactions off-chain, meaning operations don't need to be directly performed on the main blockchain. Instead, transactions are processed quickly and can be managed by one or a group of "sequencers," individuals assisting in transaction computation. Subsequently, transaction information and the system's state are uploaded to Dymension and the data storage layer that the RollApp is using.

RollApps helps applications in running smoothly and quickly on the blockchain, optimizing user experience and efficiently managing data. Fundamentally, RollApps share similarities with Appchains.

In contrast to RollApps, Dymension Hub is placed at the core of the system and is responsible for the payment and consensus layer. It plays an important role in maintaining the network's consistency and managing the consensus process, ensuring that every transaction occurs correctly and securely. This creates a flexible and scalable system capable of handling various types of applications on the Dymension blockchain platform.

Additionally, Dymension uses the Data Availability (DA) layer from Celestia to manage data, and it leverages the RollApp Development Kit (RDK) based on Cosmos SDK to support efficient application development.

3. How does Dymension work?

Dymension operates through a series of interconnected components and processes, functioning in the following ways:

RollApps:

Function: This is where users interact with the Dymension network. These applications can range from games, DeFi, to NFT projects.

Dymension Hub (System Center):

Function: Serving as the backend, the Dymension Hub acts as a coordination center for the ecosystem. It processes requests from RollApps and facilitates communication between them.

Data Availability Networks:

Function: Similar to a database, this network distributes and provides decentralized storage for temporary and readily available data, crucial for the network's operations.

RollApp Development Kit (RDK):

Function: Based on Cosmos SDK, the RDK supports RollApp development by providing pre-built modules to speed up the application building process.

Consensus and Compatibility:

Function: RollApps delegate the consensus process to Dymension Hub. It supports lightweight connections and secure communication between chains through the Cosmos IBC (Inter-Blockchain Communication) protocol.

Transaction Processing:

Function: Sequencers, operators of RollApps, confirm and process transactions, provide status updates, and send batches of processed transactions.

Elastic Block Production (EBP):

Function: Dymint deploys EBP, producing blocks as needed, reducing operational costs, and enhancing efficiency.

Role of Dymension Hub:

Function: Maintaining network security and integrity, supporting liquidity through integrated AMM, and compatibility with RollApps and the IBC ecosystem.

This approach helps Dymension maintain a balance between decentralization, scalability, and compatibility, crucial for modern blockchain networks.

4. Tokenomics & Airdrop

Currently, Dymension has introduced its network governance token, $DYM, and initiated an AIRDROP program for users called Genesis Rolldrop. Users can verify their eligibility at: https://genesis.dymension.xyz/

In the Genesis Rolldrop program, Dymension allocates a total of 7% of the $DYM tokens, equivalent to 70,000,000 $DYM, based on the following conditions:

Celestia Staker: Users who stake 1 $TIA or more, with a snapshot taken on December 19, 2023.
Ethereum L2s User: Active wallet addresses on Optimism, Base, Arbitrum, and Blast, including both bridged amounts and blockchain activities.
Cosmos: Users who have staked more than 10 $OSMO, with a snapshot taken on December 19, 2023. Also, users who have staked more than 1 $ATOM or $stATOM.
Solana: Wallet addresses that are actively used and hold more than 1 SOL, with a snapshot taken on December 19, 2023.
NFT Holders: Mad Lads, Pudgy Penguins, Bad Kids, Tensorians holders.

More detailed information about the tokenomics will be disclosed by the project in the upcoming period.

*Genesis Rolldrop - Dymension's airdrop program*

5. Project development team

The team members of Dymension have limited publicly available information, except for the fact that they are Pudgy Penguins holders.

*Two main members of the Dymension team*

6. Investors

Dymension successfully raised $6.7 million in its seed funding round with the participation of notable venture capital firms such as Big Brand Holdings, Stratos, Matchbox, among others.

7. Channels

Website: https://dymension.xyz/

Twitter (X): https://twitter.com/dymension

Discord: https://discord.com/invite/dymension

8. Conclusion

Dymension is a Modular Blockchain running on the Cosmos ecosystem. The term Modular Blockchain appears to be a future trend, with Ethereum also aiming to become such a Modular Blockchain.

Dymension exhibits innovations and interesting aspects. However, for an infrastructure-oriented project, the fundraising amount of $6.7 million seems relatively low for comprehensive development.

These are the details about the Dymension project, the next Modular Blockchain model that will follow a significant airdrop, following the footsteps of its counterpart Celestia.

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