February 7 What is Dimension (DYM)?
education
Dymension (DYM) is pioneering innovation in Web3 technology by building a high-speed, modular blockchain network called RollApps. These RollApps are designed for easy deployment, providing a streamlined approach to creating a variety of blockchain applications. The core of Dymension’s innovation is the RollApp Development Kit (RDK), which is similar to the Cosmos SDK for RollApps and provides developers with a powerful toolkit to accelerate the process of building these applications.
The term “RollApp” is derived from the “rollup” concept in blockchain technology. Rollup is a solution designed to increase blockchain scalability by rolling up or batching multiple transactions into a single transaction. “RollApp” is a core component of the Dymension network and represents a new class of blockchain applications that aim for modularity and high efficiency.
Dimension (DYM)
Dymension and RollApps offer unique solutions that provide scalability, interoperability, and efficiency in the multichain Web3 space. This innovative approach positions Dymension to play a pivotal role in the future development of blockchain technology and its applications across a variety of sectors.
RollApps is designed to solve the blockchain scaling trilemma associated with achieving a balance between scalability, security, and decentralization. RollApps uses Elastic Block Production (EBP) to produce blocks on demand rather than at fixed intervals. This approach means that blocks are only created when there are transactions to process, significantly reducing network load and improving efficiency. This is especially useful during periods of low activity as it prevents unnecessary resource consumption.
The modular nature of RollApps allows for custom solutions for specific use cases, optimizing transaction throughput. Each RollApp can be designed to address the needs of a specific application, rather than relying on a one-size-fits-all approach.
RollApp is secured by validators on the Dymension network using the Delegated Proof of Stake (DPoS) mechanism. It also utilizes a form of optimistic rollup where state root updates are optimistically accepted by the Dymension Hub but can be reverted if they prove to be invalid. This adds a layer of security by allowing the network to challenge and correct fraudulent or inaccurate transactions.
Through its unique architecture and integration with the Dymension network, RollApps powers blockchain by enhancing scalability through efficient and optimized block generation, maintaining strong security through DPoS and fraud prevention, and supporting decentralization through interoperability and community participation. Solve the expansion trilemma. By solving these challenges, RollApps represents a significant advance in the development of scalable and secure decentralized applications (DApps).
How Dimensions Work
The use of RollApps is central to how Dymension works. These are essentially individual application-specific blockchains (rollups) deployed on the Dymension network that can be customized and optimized for specific use cases. RollApps are essentially individual application-specific blockchains (rollups) deployed on the Dymension network that use EBP to generate blocks on demand in response to network activity.
The RDK is similar to the Cosmos SDK, but is tailored for RollApp development. We make it easy to build RollApps by providing pre-built modules and necessary tools. Core Cosmos SDK modules such as Bank, Gov, Upgrade and IBC are available along with unique modifications such as Epoch and special Mint modules.
Dymension acts as a hub connecting various RollApps (spokes), enabling interoperability and communication between different blockchain ecosystems. RollApps can interact with other IBC-enabled chains through Dymension Hub, creating a seamless cross-chain experience.
The Sequencer is responsible for validating, ordering, and processing transactions within RollApp. Provides immediate status updates upon transaction submission. The sequencer adopts an optimistic approach to state verification, batching and publishing blocks of transactions to peer nodes and the on-chain data availability network.
The sequencer adopts an optimistic approach to state verification, batching and publishing blocks of transactions to peer nodes and the on-chain data availability network. If the proof of fraud is proven to be invalid, the hub can revert the state transition to maintain network integrity.
Dymension leverages the DPoS consensus mechanism built on Cosmos SDK and Tendermint. It allows connections to external blockchains while ensuring network security. Dymension’s validators participate in block production, keeping the network secure and decentralized.
DYM tokens are essential for transaction processing, staking, governance, and as a cross-chain value transfer medium. Dymension’s economic model dynamically adjusts DYM issuance based on staking rate and network activity to balance inflation and token supply.
RollApps uses the Escrow Inter Blockchain (IBC) mechanism for bridging, enabling efficient cross-chain asset transfers with a dispute mechanism for security. Dymension Hub’s built-in Automated Market Maker (AMM) facilitates asset routing and liquidity provision for RollApps.
What makes Dymension unique?
First, the concept of RollApps, the core of Dymension, is a groundbreaking development. RollApps is a modular, application-specific blockchain that runs on top of the Dymension Network. This modular architecture allows developers to create custom blockchain solutions for specific use cases, from DeFi and gaming to social media applications, without the constraints of one-size-fits-all blockchains.
What sets RollApps apart is its ability to outsource the burden of reaching consensus to Dymension Hub. This allows RollApps to focus on application-specific functionality while leveraging the security and decentralization of the Dymension network. Similar to the Cosmos SDK but designed specifically for RollApp creation, the RollApp Development Kit (RDK) further simplifies the development process. By providing pre-built modules and tools, developers can more easily and quickly deploy scalable and efficient blockchain solutions. This approach solves the blockchain trilemma by providing scalability and customization without compromising security or decentralization.
Second, Dymension’s unique approach to interoperability sets it apart in the Web3 space. Unlike existing blockchain platforms that operate in silos, Dymension acts as a hub connecting various RollApps, enabling seamless interoperability and communication between different blockchain ecosystems. This is achieved through integration with the Inter-Blockchain Communication (IBC) protocol, which allows RollApps to securely transfer data and value between chains. This feature positions Dymension as a unifying layer for fragmented blockchain environments, promoting a cohesive and interconnected Web3 experience.
Additionally, the platform’s Elastic Block Generation (EBP) allows blocks to be generated efficiently in response to network activity, significantly reducing RollApp Sequencer’s operating costs and improving the overall user experience. By combining these capabilities, Dymension not only addresses scalability and interoperability issues, but also fosters a more comprehensive and accessible Web3 ecosystem where developers can leverage the strengths of various blockchains in a unified framework.
What is the Dymension Ecosystem?
The Dymension ecosystem represents a dynamic and extensive modular blockchain network known as RollApps, which collectively forms a diverse and fast-growing environment within the wider blockchain world. This ecosystem is quantified and characterized by several key indicators that reflect its activity and growth.
First of all, RollApps’ TVL (Total Value Locked) of 10,720,391.5 DYM is an important indicator of the financial health of the ecosystem and user trust. TVL measures the total value of assets deposited in various RollApps, indicating their usefulness and popularity within the Dymension ecosystem. The 7-day percentage change in TVL provides insight into short-term growth or contraction trends in the ecosystem.
The number of registered and deployed RollApps is 1,071 and deployed 13,143, highlighting the scalability and ease of RollApp creation within Dymension. This high number of deployments reflects the platform’s ability to meet a variety of use cases and developer needs and demonstrates the diversity and developer-friendly nature of the Dymension ecosystem.
The total IBC (inter-blockchain communication) transfer volume amounts to 10,120,673, highlighting the degree of interoperability and cross-chain interaction that Dymension promotes. This metric represents the frequency and volume of assets and information transferred across the various blockchain networks within the ecosystem, highlighting Dymension’s role in facilitating interconnected blockchain operations.
Lastly, the total number of active addresses, 583,312, represents the user base and community engagement within the Dymension ecosystem. This number represents unique wallet addresses that have interacted with RollApps and indicates the level of adoption and active participation in the ecosystem.
What is DYM token?
DYM token is the native cryptocurrency of the Dymension ecosystem. The DYM token is a versatile and essential component of the Dymension ecosystem, performing a variety of roles from securing the network to enabling governance and promoting interoperability across blockchain networks. Its design aims to align the incentives of various stakeholders within the ecosystem to promote active participation, network security, and sustainable growth.
- Dymension operates on a Delegated Proof of Stake (DPoS) model where validators are responsible for network security and transaction processing. DYM tokens are staked by these validators or delegated by token holders to promote network security and integrity. Validators receive rewards in the form of DYM tokens for their contributions to the network.
- DYM token holders have governance rights and therefore can participate in the decision-making process regarding the future development of the Dymension ecosystem. This includes voting on proposals related to network upgrades, policy changes, and resource allocation within the ecosystem.
- Given Dymension’s focus on interoperability and cross-chain communication, the DYM token facilitates transactions and interactions across various blockchain networks. This includes paying costs associated with cross-chain data and asset transfers.
- Dymension is integrating an Automated Market Maker (AMM) within its hub and the DYM token can be used within this framework. Token holders can contribute to liquidity pools, potentially earning rewards for providing liquidity and enabling efficient asset exchange and price discovery within the ecosystem.
- The supply of DYM tokens is subject to algorithmic adjustments based on staking dynamics. The issuance rate of new tokens will be adjusted according to the DYM token staking rate, aiming to achieve a balance between network security and token supply.
DYM Token Economics
How to buy DYM on Bitfinex?
How to buy DYM with cryptocurrency
1. Create an account by logging in or signing up for a Bitfinex account.
2. Go to the deposit page.
3. In the Cryptocurrency section, select the cryptocurrency you want to buy DYM for and create a deposit address in your Exchange wallet.
4. Send cryptocurrency to the generated deposit address.
5. Once the funds arrive in your wallet, you can trade them with DYM. Learn how to trade on Bitfinex here.
How to buy DYM with fiat currency
1. Create an account by logging in or signing up for a Bitfinex account.
2. Depositing fiat to your Bitfinex account requires full verification. Learn about the different certification levels here.
3. On the deposit page, select the fiat currency you wish to deposit from the bank transfer menu. Bitfinex has a minimum amount for fiat deposits. Learn more here.
4. Check your registered email with Bitfinex for remittance details.
5. Send funds.
6. Once the funds arrive in your wallet, you can use them to purchase DYM.
Plus, you have Bitfinex on your mobile, so you can easily buy DYM currency on the go.
(App Store) (Google Play)
DYM Community Channel
website | discord | X (Twitter) | Telegram | GitHub | middle