07 February What is DYM?
in education
Dymension (DYM) is pioneering Web3 technology, creating a network of high-speed modular blockchains called RollApps. These RollApps are designed to be easily deployable, providing a streamlined approach to creating various blockchain applications. At the core of Dymension's innovation is the RollApp Development Kit (RDK), similar to the Cosmos SDK for RollApps, providing developers with a powerful toolset to speed up the process of creating these applications.
The term “RollApp” is derived from the concept of “rollups” in blockchain technology, which are solutions designed to increase the scalability of the blockchain by bundling or bundling multiple transactions into a single transaction. One of the key components of the Dymension network, “RollApp” represents a new class of blockchain applications that aims to be modular and highly efficient.
Dimension (DYM)
Dymension and RollApps offer a unique solution in the multi-chain Web3 space, providing scalability, interoperability and efficiency. This innovative approach positions Dymension as a pivotal player in the future development of blockchain technology and its applications across various sectors.
RollApps is designed to address the blockchain scaling dilemma, which involves balancing scalability, security, and decentralization. RollApps uses Elastic Block Production (EBP) to produce blocks on demand, rather than at specific intervals. This approach means that blocks are only created when there are transactions to process, which greatly reduces network load and improves efficiency. This is especially useful during periods of low activity, as it avoids unnecessary consumption of resources.
The modular nature of RollApps allows them to offer solutions tailored to specific use cases, which can improve transaction throughput. Each RollApp can be designed to handle the requirements of its specific application, rather than relying on a one-size-fits-all approach.
RollApps are secured by Dymension Network validators, which use a Delegated Proof of Stake (DPoS) mechanism. It also uses a form of optimistic collection where updates to the state root are accepted by the Dymension Hub optimistically but can be rolled back if they prove invalid. This adds an extra layer of security by allowing the network to challenge and correct any fraudulent or incorrect transactions.
Through its unique architecture and integration with the Dymension Network, RollApps addresses the blockchain scaling dilemma by enhancing scalability through efficient and optimized block production, maintaining strong security through DPoS and fraud proof, and supporting decentralization through interoperability and community engagement. By addressing these challenges, RollApps represents an important step forward in the development of scalable, secure, and decentralized applications (DApps).
How does Dimension work?
Using RollApps is fundamental to how Dymension works. They are essentially individual application-specific blockchains, deployed on the Dymension network, that are customizable and optimized for specific use cases. RollApps are essentially individual application-specific blockchains (pools) deployed on the Dymension network, using EBP to produce blocks on demand in response to network activity.
The RDK is similar to the Cosmos SDK but is specifically designed for RollApp development. It makes building RollApps easy by providing pre-built modules and necessary tools. Core Cosmos SDK modules such as Bank, Gov, Upgrade, and IBC are available, along with unique mods such as Epochs and specialized Mint modules.
Dymension acts as a hub that connects different RollApps (spokes), enabling interoperability and communication between different blockchain ecosystems. RollApps have the ability to interact with other IBC-enabled chains via Dymension Hub, promoting a seamless cross-chain experience.
Sequencers are responsible for validating, ordering, and processing transactions within the RollApp. They provide instant status updates when a transaction is submitted. Sequencers collect and disseminate transaction blocks to peer nodes and networks that provide on-chain data, adopting an optimistic approach to state validation.
Sequencers collect and disseminate transaction blocks to peer nodes and networks that provide on-chain data, adopting an optimistic approach to state validation. The center can roll back any state transition if evidence of fraud proves invalid, maintaining the integrity of the network.
Dymension uses a DPoS consensus mechanism built on top of the Cosmos SDK and Tendermint. It ensures network security while allowing connections to external blockchains. Validators at Dymension are involved in producing blocks, maintaining network security and decentralization.
DYM token is an integral part of transaction processing, storage, governance, and as a means of transferring value across the chain. Dymension's economic model dynamically adjusts DYM issuance based on mortgage ratios and network activity, balancing inflation and token supply.
RollApps uses the Escrow Inter Blockchain (IBC) mechanism for delivery, enabling efficient cross-chain asset transfers with a dispute mechanism for security. The Automated Market Maker (AMM) built into Dymension Hub facilitates asset routing and provides liquidity for RollApps.
Why is Dymension unique?
First, the concept of RollApps, which is central to Dymension, is a groundbreaking advance. RollApps are modular, application-specific blockchains that run on top of the Dymension network. This modular architecture allows developers to create custom blockchain solutions for specific use cases, ranging from DeFi and gaming to social media apps, without the constraints of a one-size-fits-all blockchain.
What sets RollApps apart is its ability to outsource the burden of arriving at consensus to the Dymension Hub. This allows RollApps to focus on application-specific functionality while taking advantage of the security and decentralization of the Dymension network. The RollApp Development Kit (RDK), similar to the Cosmos SDK but designed specifically for creating RollApps, simplifies the development process. It provides pre-built modules and tools, making it easier for developers to quickly deploy efficient and scalable blockchain solutions. This approach addresses the blockchain triple dilemma by providing scalability and customization without compromising security or decentralization.
Second, Dymension's unique approach to interoperability sets it apart from others in the Web3 space. Unlike traditional blockchain platforms that operate in silos, Dymension acts as a hub that connects multiple RollApps, enabling interoperability and seamless communication between different blockchain ecosystems. This is achieved through its integration with the Inter-Blockchain Communication (IBC) protocol, allowing RollApps to securely transfer data and value between chains. This feature positions Dymension as a unified layer in the fragmented blockchain landscape, facilitating a cohesive and interconnected Web3 experience.
Furthermore, the use of an Elastic Block Production (EBP) platform ensures that blocks are produced efficiently in response to network activity, significantly reducing the operating costs of RollApp Sequencers and enhancing the overall user experience. By combining these features, Dymension not only solves scalability and interoperability challenges, but also fosters a more comprehensive and accessible Web3 ecosystem, where developers can leverage the strengths of different blockchains in a unified framework.
What is the Dymension Ecosystem?
The Dymension ecosystem represents a dynamic and vast network of modular blockchains, known as RollApps, which collectively form a diverse and rapidly growing landscape within the broader blockchain world. This ecosystem is measured and characterized by several key metrics that reflect its activity and growth.
For starters, RollApps' Total Value Locked (TVL), at 10,720,391.5 DYM, is a crucial indicator of the ecosystem's financial health and user confidence. TVL measures the total value of assets deposited in different RollApps, demonstrating their usefulness and popularity within the Dymension ecosystem. The 7-day percentage change in TVL provides insights into short-term growth or contraction trends of the ecosystem.
The number of RollApps listed and published, with 1,071 listed and 13,143 published, underscores the scalability and ease of creating a RollApp within Dymension. This large number of deployments reflects the platform's ability to meet a wide range of use cases and developer needs, showcasing the diversity and developer-friendly nature of the Dymension ecosystem.
The total volume of Inter-Blockchain Communication (IBC) transfers, at 10,120,673, highlights the degree of interoperability and cross-chain interactions facilitated by Dymension. This metric refers to the frequency and volume of assets and information transferred across different blockchain networks within the ecosystem, with an emphasis on Dymension's role in enhancing interconnected blockchain operations.
Finally, the total of 583,312 active addresses indicates the user base and community engagement within the Dymension ecosystem. This number represents the unique wallet addresses that have interacted with RollApps, indicating the level of adoption and active participation in the ecosystem.
What is DYM code?
DYM token is the native cryptocurrency of the Dymension ecosystem. The DYM token is a versatile and integral component of the Dymension ecosystem, serving various roles from securing the network to enabling governance and facilitating interoperability across blockchain networks. Its design aims to align the incentives of various stakeholders in the ecosystem, promoting active participation, network security, and sustainable growth.
- Dymension operates on a Delegated Proof of Stake (DPoS) model, where validators are responsible for securing the network and processing transactions. DYM tokens are stored by these validators or delegated to them by token holders, which incentivizes the security and integrity of the network. Validators receive rewards, in the form of DYM tokens, for their contributions to the network.
- DYM token holders have governance rights, allowing them to participate in decision-making processes regarding the future development of the Dymension ecosystem. This includes voting on proposals regarding network upgrades, policy changes, and resource allocation within the ecosystem.
- Given Dymension's focus on interoperability and cross-chain communications, DYM tokens facilitate transactions and interactions across different blockchain networks. This includes paying costs associated with cross-chain data and asset transfer.
- Dymension integrates an automated market maker (AMM) within its position, and DYM tokens can be used within this framework. Token holders can contribute to liquidity pools, potentially receiving rewards for providing liquidity and enabling efficient asset exchange and price discovery within the ecosystem.
- The provision of DYM tokens is subject to algorithmic adjustments based on staking dynamics. The issuance rate of new tokens is adjusted in response to the ratio of DYM tokens, aiming to balance network security and token supply.
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How to buy DYM on Bitfinex?
How to buy DYM with cryptocurrencies
1. Log in to your Bitfinex account or register to create an account.
2. Go to the deposit page.
3. In the Cryptocurrencies section, choose the cryptocurrency you plan to buy DYM with and create an Exchange wallet deposit address.
4. Send the crypto to the generated deposit address.
5. Once the funds arrive in your wallet, you can exchange them for DYM. Learn how to trade on Bitfinex here.
How to buy DYM with fiat currency
1. Log in to your Bitfinex account or register to create an account.
2. You need to get full verification to be able to deposit fiat currencies into your Bitfinex account. Learn about the different verification levels here.
3. On the Deposit page, under the Bank Wire menu, choose the fiat currency for your deposit. There are minimum fiat deposits on Bitfinex; Learn more here.
4. Check your registered Bitfinex email to get the transfer details.
5. Send money.
6. Once the funds arrive in your wallet, you can use them to buy DYM.
We also have Bitfinex on mobile, so you can easily buy DYM on the go.
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