Hyperledger Foundation’s Post

Layer 3 represents an innovative approach to blockchain scalability and cost reduction on top of Layer 2. It serves as a customizable execution platform designed for hyper scalability and enhanced control over the technology stack, particularly through customized data availability models. At its core, L3 incorporates the fundamental components of a smart contract, tracking its state root on Layer 2 (L2), and utilizing a verifier smart contract to validate the integrity of state transition proofs, mirroring the structural principles of L2. The key to L3's scalability📈 and cost reduction💸 lies in its unique architecture. First, it addresses the issue of high transaction costs on Layer 1 (L1) by leveraging the cost-efficiency of Layer 2 while preserving the advantages of decentralization, general-purpose logic, and composability. However, the challenge arises when decentralized applications (DApps) require tailored solutions, which is where L3 comes into play. L3 optimizes costs by submitting validity proofs to L2, creating an elegant recursive structure. Recursive proofs allow one proof to attest to the validity of another, resulting in multiple proofs being merged into a single proof. This compounding compression benefit significantly reduces gas costs, while still maintaining the robust security of L1. In terms of interoperability costs, L3 offers distinct advantages. Interoperability between L2 and L3, as well as between different instances of L3, proves to be more cost-effective compared to interactions on L1. Interoperability costs encompass fees paid to bridges for transportation and the transaction settlement cost on the destination chain. While bridge transportation costs remain relatively fixed, regardless of where the bridging occurs, the significant variable lies in the destination chain transaction settlement cost. L1 incurs the highest transaction settlement cost, with L2 in the middle, and theoretically, L3 offering the most economical solution. As a result, interoperation between L2 and L3 or among different L3 instances proves to be notably cheaper than any comparable interactions on L1. This cost-efficient design makes L3 a promising solution for scaling and reducing the overall expenses associated with blockchain transactions. Interested in learning more about blockchain’s real-world adoption from both a technical/architectural and strategic perspective? Follow me on LinkedIn and X (formerly Twitter - @ceciliasubmari1) and comment on the post below. I am always up for a good discussion! #blockchain #crypto #interoperability #scaling #payment #tokenization #ethereum

Interoperability for Blockchains is vital for financial services The news that R3 and its product Corda has achieved interoperability with all DLT and Blockchain networks must be welcomed with huge enthusiasm by all! It comes as the industry is recognizing the latent risks of its legacy systems and infrastructures are teetering and systemic failure is a when not an if! The need for global real time operations on a 24/7 clock is being heightened by the move to trade date processing for T+1 settlement . The speed to introduce global industry wide change before May 28th 2024 is clearly not going to happen but a major step has been made with the R3 announcement of interoperability. The need is for Governments and Regulators around the worlds markets to agree on the new structure and new world order in capital markets and financial services that they want to have created. Do they have any idea is a question i cant answer but I err on the side of doubt! The introduction of interoperability also brings into question about location of the markets? Geographically it is anywhere and everywhere. Almost virtual? Along with DLT interoperability anticipate AI and Cloud technologies to become key technology architectures Who will design the markets or will it just evolve? https://lnkd.in/eFQeQ-Ph

Blockchains 🧊 ⛓ allow P2P or B2B settlements across a network without a central authority. 🏛❌ They can settle in hours if not minutes ⏰👀 They can reduce exceptions as well as time and expense with reconciliations 💻 Yet they have struggled in the last eight years to get beyond the POC phase or small scale implementations. Blockchains, through their smart contracts have to be customized to each use-case. The protocols suffer from a lack of scale, speed and capacity. As distributed "ledgers" 🧮, curiously, they also lack double-entry accounting or any ability to reflect transacting periods or future dated payables & receivables. Lastly, they tend to be walled gardens and are not that interoperable. Quoting their original whitepapers, the link to an analysis 📈 below, first published in 2019 and based on research from 2015-16 explains why "In their own words", the solutions were always going to struggle. https://lnkd.in/drXwjUk The developments of elected or selected validators still have the finite capacity issues and sharding and layer 2 solutions are just a disjointed and disconnected false workaround. The solution is a asset and life-cycle agnostic protocol, which is a real-time, linearly scalable and high capacity double-entry accounting distributed ledger that is interoperable with legacy infrastructure and other networks. Reach out to me if you have questions on the article or our solution TapestryX #Blockchain #DLT #L4SCorp #TapestryX

⚡️Unlocking Efficiency: Real-Time Data in the World of DeFi and DEXs⚡️ #Syntropy revolutionizes access to real-time #blockchain data, providing on-demand, low-latency streams of transactional data directly from the mempool. Syntropy works on a #decentralized architecture, enabling trust free, oracle-grade access to #Web3 data. #blockchaintechnology #blockchaintech https://lnkd.in/dtx8_Vc6

Exploring the Future of Finance: The Global #BlockchainFinancialNetwork Download a #Free Sample #Report: https://lnkd.in/d7Pricuu #ByCompany: IBM | Ripple | Rubix by Deloitte | Accenture | Distributed Ledger Technologies | OKLink | Nasdaq Linq | Oracle | Amazon Web Services (AWS) | Citi | ELayaway | HSBC | Golden Ant Financial Broker LLC | JD Financial Services, LLC | Qihoo 360 | Tecent | Baidu, Inc. | Huawei | Bitspark | SAP #ByType: • IT Solution • FinTech • Bank • Consulting • Exchange and Other #ByApplication: • Cross-border Payment • Trade Finance • Digital Currency • Identity Management Blockchain financial networks are revolutionizing the way we conduct financial transactions, manage assets, and ensure trust and transparency. Here are some key trends and insights into the ever-evolving global blockchain financial network market: 🔗 #Interoperability: Blockchain networks are breaking down silos, enabling seamless interoperability between various financial institutions, payment networks, and businesses. This paves the way for a more interconnected and efficient financial ecosystem. 💰 #Tokenization: The tokenization of assets is gaining traction. Real estate, stocks, art, and even intellectual property can be represented as digital tokens on blockchain networks, making investments more accessible and liquid. 🔐 #Security: With cryptographic techniques and decentralized ledgers, blockchain networks offer heightened security and trust. This is especially crucial in the age of digital threats and cyberattacks. 🌍 #FinancialInclusion: Blockchain financial networks have the potential to reach the unbanked and underbanked populations, providing them with access to financial services and opportunities that were previously out of reach. 📊 #DataTransparency: Blockchain's transparent and immutable ledger ensures that financial data is accurate and tamper-proof. This fosters accountability and reduces the risk of fraudulent activities. 🚀 #Innovation: The blockchain financial network market continues to evolve with new players, partnerships, and use cases emerging regularly. Stay tuned for exciting developments in DeFi, NFTs, and more! 🌐 The global blockchain financial network market is poised for substantial growth, and its impact on the financial industry cannot be overstated. It's not just about cryptocurrencies; it's about reshaping finance as we know it. #Blockchain #Finance #Fintech #Cryptocurrency #BlockchainTechnology #FinancialInnovation #DigitalTransformation #BlockchainFinance #DeFi (#DecentralizedFinance) #CryptoEconomy #Tokenization #FinancialInclusion #SmartContracts #NFTs (Non-Fungible Tokens) #BlockchainSecurity #GlobalMarket #FinancialTechnology #BlockchainTrends #EmergingTech #DigitalAssets

Signature Aggregation: Saving Gas and Costs with Account Abstraction Signature aggregation is a powerful feature that complements account abstraction in the Ethereum ecosystem. By compiling multiple signatures into a single one, developers can significantly reduce gas costs and transaction fees. In this post, we will explore the concept of signature aggregation, its role in optimizing Ethereum transactions, and the cost-saving benefits it brings to the blockchain. Check out Alchemy's blog for a neat overview on this! https://lnkd.in/dzWDM3vU 📚 Understanding Signature Aggregation: In Ethereum, transactions often require multiple signatures from different parties, such as in multi-signature wallets or complex smart contract interactions. Signature aggregation allows these multiple signatures to be combined into a single signature, reducing the number of cryptographic operations required during transaction processing. This optimization leads to substantial space savings, making transactions more cost-effective. See Vitalik's tweet illustrating the outcome https://lnkd.in/dXQy5K8A 🚀 The Impact on Gas Costs: Traditional multi-signature transactions would require executing cryptographic operations for each signature, resulting in higher gas costs. With signature aggregation, the number of cryptographic operations is significantly reduced, resulting in fewer computational steps and lower gas expenses. This optimization is particularly beneficial for applications like decentralized exchanges, governance protocols, and decentralized autonomous organizations (DAOs) that involve frequent multi-party interactions. Details: “Speeding up elliptic computations”paper https://lnkd.in/dJzYqPiZ 📈Enhancing Efficiency in Rollups and Layer-2 Solutions: Layer-2 scaling solutions, such as rollups, aim to improve Ethereum’s scalability by aggregating transactions off-chain and submitting a single batched transaction to the mainnet. Signature aggregation plays a crucial role in rollups by reducing the size of batched transactions. Since the majority of the size of a transaction in rollups is typically attributed to the signatures, aggregating these signatures substantially optimizes the gas costs and boosts the efficiency of the scaling solution. Check out live demo how the batching works. https://lnkd.in/d7ejRPjQ 🎯 Conclusion: Signature aggregation presents an exciting opportunity for Ethereum to optimize transaction processing, reduce gas costs, and enhance scalability. As developers embrace this feature, we can expect more efficient dApps, DeFi protocols, and scaling solutions that provide users with cost-effective and seamless experiences.

The Digital Assets space comes with A LOT of reading - new research, new regulatory discussions/proposals, new POCs, new pilots, new whitepapers, new working papers etc. All of it very interesting. In Friday evening's read (exciting) I went through the inaugural IMF Working Paper Feb 2024 of the "Technology Fundamentals for Digital Finance" series, where the topic addressed is Interoperability. What is Interoperability? DLT interoperability refers to the seamless exchange of data and transactions across different DLT platforms. Achieving interoperability between DLT platforms can overcome fragmentation, improve efficiency, and unlock the full potential of blockchain technology in financial services. The paper proposes a conceptual model called ASAP (Access, Service, Asset, Platform) - each letter referring to a "layer" on DAP. Quoting some points directly from this working paper: ◾ "This paper seeks to answer the question, “What is the TCP/IP-equivalent for digital assets?” (intrigued by the contrasting of DLT interoperability to the internet's interoperability) ◾ "Interoperability at scale across platforms requires the establishment of common approaches and standards" ◾ "Digital Asset Platforms represent the combination of research initiatives that leverage tokenization and programmability, potentially taking the financial sector to new levels in terms of services, participant inclusion, competition, resilience, and integration with other economic activities." ◾ "As with any innovative approach, this paradigm also introduces new risks in finance, that need to be understood and managed." ◾ "Architecturally, tokenization creates a distinct separation in the management of the asset and its hosting platform" ◾ "Tokenization, by segregating the implementation of an asset's functions, allows for a clear separation between the Asset and the Platform regarding management, control, risk, stakeholders, governance, and economics. The asset becomes an independent entity that can be designed separately from the platform." Link to the paper : https://lnkd.in/gHpy6W6A This article summarizes the paper. Looking forward to the rest of the Working Papers in this series. #IMF #blockchaintechnology #dlt #digitalassets #tokenization

Token Issuance Platforms 101: Everything You Need to Know Distributed ledger technology (DLT) has been revolutionizing the way we conduct transactions and manage data. One of the most significant developments within this space is the advent of token issuance platforms. Whether you’re a seasoned tech enthusiast or someone new to the world of DLT, understanding token issuance platforms is essential in today’s digital landscape.

Interoperability protocols like LayerZero and Wormhole are reshaping the future of finance by enabling seamless communication across different blockchain networks. These technologies are critical for the transfer of assets and data, breaking down silos that have limited blockchain's adoption and scalability. LayerZero and Wormhole facilitate the development of decentralized applications (dApps) and financial services that operate across multiple chains, enhancing user experience and broadening blockchain's potential use cases. LayerZero, as an ultralight, trustless protocol, provides a secure foundation for transferring data and assets, making multi-chain applications feasible. Meanwhile, Wormhole connects diverse blockchains, allowing for the transfer of not just assets but also arbitrary data, which is essential for creating complex, multi-chain applications. The impact on traditional finance could be revolutionary. These protocols offer a pathway to significantly reduce the friction and costs associated with cross-border payments and securities trading. By enabling efficient cross-chain transactions, they challenge the necessity of traditional financial intermediaries, potentially reducing their role and influence. Furthermore, the ability to create sophisticated financial products across different blockchains could lead to new financial instruments and markets. This technological leap forward promises a future where finance is more global, inclusive, and decentralized, blurring the lines between traditional and decentralized finance (DeFi). As we witness the convergence of these two worlds, the financial ecosystem is set to become more interconnected and efficient. Interoperability protocols like LayerZero and Wormhole are not just advancing blockchain technology; they are paving the way for a significant transformation in the financial industry, promising a more equitable global financial system.

#news - LQWD Technologies, a leading #Bitcoin #LightningNetwork Company sets a new record with 38,481 routing transactions in February 2024. Our AI-driven channel rebalancing system, implemented in Aug '23, continues to propel us forward, achieving a 300% increase in daily routing volume. March sees us maintaining momentum, averaging over 2,200 transactions daily. Read the Full Press Release here- > https://lnkd.in/gRPUk_Zv #AI #tsxv #LQWD #stockstowatch