Dymension: What is Dymension? An overview of a new Modular Blockchain project

By UnichLabs | UnichLabs | 4 Oct 2024


The Dymension ecosystem is designed to be highly scalable, secure, and user-friendly, with a focus on delivering an exceptional experience for both developers and end-users. 

Unich Analysis will dive in with readers to better understand this interesting project, how it is able to address a ton of the challenges surrounding the widespread acceptance of cryptocurrencies.

What is Dymension?

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Dymension is a decentralized ecosystem where RollApps can thrive and seamlessly interoperate, forming an “Internet of RollApps”. This innovative approach addresses the current challenges facing the adoption and growth of RollApps, such as fragmentation, lack of interoperability, and high development barriers.

At the core of Dymension is a modular and extensible protocol that enables the creation, deployment, and interconnection of RollApps across multiple blockchain networks. By providing a unified infrastructure, Dymension empowers developers to build and deploy RollApps with ease, while ensuring seamless communication and data exchange between these applications. 

Dymension as a layer 1 blockchain

Dymension is a fully decentralized, permissionless, and integrated solution, including the layer 1, layer 2, decentralized exchange, and RaaS (RollApp as a Service) tooling. Dymension appears to be designed as a layer 1 blockchain protocol that serves as a hub and platform for hosting and facilitating the deployment of application-specific rollups (RollApps) through its specialized components like the Dymension Hub, RVM, and embedded AMM. The Dymension Hub seems to be the core layer 1 blockchain that underpins the entire Dymension ecosystem.

Dymension’s vision: a fully decentralized, permissionless, and integrated solution

  • Non-Custodial and Decentralized:

RollApp deposits are held by Dymension’s layer 1 blockchain, making it non-custodial and decentralized from day one.

There are no multi-sig contracts, no keys, and no single point of failure in the Dymension ecosystem.

  • Secure by Design:

Dymension is designed as a fully decentralized, permissionless, and integrated solution, with the layer 1, layer 2, DEX, and RaaS tooling all integrated and secured within the network.

This holistic approach ensures that the entire Dymension ecosystem is secure and resilient.

  • Robust Consensus Mechanism:

RollApps have “no consensus constraints holding them back” suggests that Dymension likely employs a robust and scalable consensus protocol.

This allows RollApps to achieve high performance and security without being bottlenecked by consensus constraints.

  • Inter-Blockchain Communication (IBC) Integration:

Dymension’s use of the IBC protocol to connect RollApps, Data Availability (DA) layers, and the broader crypto ecosystem ensures secure cross-chain interoperability.

IBC is a proven and secure standard for inter-blockchain communication, providing an additional layer of security for the Dymension network.

  • Decentralized Governance:

The “Dymocracy” governance system allows users to propose and vote on proposals on-chain, ensuring a decentralized and transparent decision-making process.

This helps maintain the security and integrity of the Dymension network through community-driven governance.

Outstanding features of Dymension Crypto

Scalable and Customizable: Dymension is designed to be highly scalable, allowing users to easily expand and customize the platform to fit their specific needs. It can handle large amounts of data and complex workflows without performance degradation.

Intuitive User Interface: Dymension boasts an intuitive and user-friendly interface, making it easy for both technical and non-technical users to navigate and interact with the platform. The interface is clean, visually appealing, and designed for efficient workflow management.

Powerful Data Management: Dymension provides robust data management capabilities, allowing users to seamlessly integrate, process, and analyze data from various sources. It supports a wide range of data formats and can handle structured, semi-structured, and unstructured data.

Automation and Workflow Optimization: The platform offers advanced automation features and workflow optimization tools, enabling users to streamline their business processes and increase efficiency. This includes the ability to automate repetitive tasks, define custom workflows, and monitor process performance.

Collaboration and Governance: Dymension facilitates seamless collaboration among team members, allowing them to work together on projects, share data and insights, and maintain control over access and permissions. It also provides robust governance features to ensure data security and compliance.

Advanced Analytics and Visualization: The platform offers powerful analytics and data visualization capabilities, enabling users to gain deeper insights into their data. It supports a wide range of visualization tools, including interactive dashboards, reports, and custom visualizations.

Extensibility and Integration: Dymension is designed to be highly extensible, with the ability to integrate with a wide range of third-party applications and services. This allows users to seamlessly incorporate Dymension into their existing technology ecosystem and leverage its capabilities alongside other tools and systems.

Continuous Innovation: The Dymension team is committed to continuously enhancing the platform, introducing new features, and staying ahead of the curve in the rapidly evolving world of data management and analytics. Users can expect regular updates and improvements to the platform.

Functions of Dymension

Functions of Dymension

RollApp

RollApps are a key component of the Dymension blockchain platform, where DApps are deployed as rollups, could help improve scalability and reduce gas fees for users, making the platform more attractive for mainstream adoption.

RollApps are application-specific rollups built using the Dymension RollApp Development Kit (RDK). The RDK provides a pre-packaged set of generic modules for common functionalities like account creation and token management. In essence, RollApps are the building blocks of the Dymension ecosystem, allowing developers to create high-performance, specialized blockchain applications that can seamlessly integrate with each other and the broader blockchain landscape. 

rollapps

RollApps leverage the Dymension Hub for native interoperability and shared security.

Dymension Hub

The Dymension Hub is the settlement layer and core component of the Dymension protocol. It is a Cosmos SDK Proof-of-Stake chain using the Tendermint Core consensus model.

The hub is designed to provide optimized services for the RollApps, besides, ensures security for RollApps in the following ways:

  • Shared Security:

The Dymension Hub is a Cosmos SDK Proof-of-Stake chain using the Tendermint Core consensus model.

This provides a shared security model for all the RollApps hosted on the Dymension platform.

  • Rollup Servicing Logic:

The rollup servicing logic is embedded within the Dymension Hub itself.

This means the core functionality for managing and securing the RollApps is integrated into the hub, rather than being a separate layer.

  • RollApp Virtual Machine (RVM):

Dymension introduces a novel dispute-resolution mechanism called the RVM.

The RVM simulates the exact execution environment of a RollApp transaction within the Dymension Hub.

This allows the hub to deterministically verify the output of a RollApp’s execution, ensuring the integrity of the RollApp’s state.

  • Data Availability (DA) Network:

Dymension utilizes a separate DA network to store the transaction data for the RollApps.

This offloads the data storage requirements from the RollApps, making them more lightweight, while still ensuring data availability.

  • Embedded AMM:

The Dymension Hub embeds a native Automated Market Maker (AMM) to provide shared liquidity for the RollApps.

This shared liquidity infrastructure is considered essential for the RollApps and is secured by the Dymension Hub.

By integrating these security mechanisms directly into the Dymension Hub, the protocol aims to provide a robust and secure environment for the deployment and operation of the RollApps, without requiring each RollApp to implement its own security measures.

Data Availability (DA) Network

Dymension utilizes a Data Availability (DA) network to store transaction data for the RollApps. This will act as a data storage layer to support the RollApps.

This allows the RollApps to be lightweight and focus on application-specific logic, as they do not have to maintain the full blockchain history. The DA network ensures data availability for the RollApps, and the RollApps can seamlessly interact with the DA Network to retrieve the data they need for their specific use cases, leveraging the benefits of the distributed storage solution.

Liquidity

Dymension embeds a native Automated Market Maker (AMM) into the Dymension Hub

This AMM is designated for facilitating the RollApps and is considered essential infrastructure

It provides shared liquidity on top of the shared security provided by the Dymension Hub

Dymension Ecosystem

User functionalities

The key user functionalities in the Dymension ecosystem include:

  • RollApp Interaction:

Users can interact with and use the various decentralized applications (RollApps) deployed on the Dymension platform.

  • Asset Management:

Users can manage their digital assets, such as tokens, within the Dymension ecosystem.

They can leverage the integrated decentralized exchange (DEX) for trading and liquidity.

  • Staking and Delegation:

Users can stake their tokens to participate in the network’s governance and earn rewards.

They can also delegate their tokens to validator nodes, without the need to run a validator themselves.

  • RollApp Deployment:

Users (developers) can deploy their own RollApps on the Dymension platform, leveraging the provided tooling and infrastructure.

  • Exploration and Discovery:

Users can explore the existing RollApps deployed on the Dymension network.

Running the network: nodes, validators, delegation program

The Dymension website provides the following information about running the Dymension network:

  • Nodes:

Dymension is built using the Cosmos SDK and Tendermint Core, which means it operates as a Proof-of-Stake blockchain network.

Users can run full nodes to maintain a copy of the Dymension blockchain and participate in the consensus process.

  • Validators:

Validator nodes are responsible for processing transactions and adding new blocks to the Dymension blockchain.

Validators are selected based on their staked tokens and are incentivized to maintain the network’s security and integrity.

  • Delegation Program:

Dymension has a token staking and delegation program, where users can delegate their tokens to validator nodes.

By delegating their tokens, users can participate in the network’s governance and earn rewards, without the need to run a validator node themselves.

Dymension’s Token (DYM)

What is DYM token?

DYM is the native token of Dymensin Ecosytem, which is used for:

  • Interacting with RollApps in the Dymension ecosystem.
  • Users can delegate staking to validators or become validators themselves in the network to earn rewards.
  • Airdrop rewards.

Token details and distribution

  • Token Name: Dymension
  • Token: DYM
  • Blockchain: Dymension
  • Contract: Currently Updating
  • Token Utility: Utility
  • Total Supply: 1,000,000,000 DYM

Dymension tokenomics:

Token details and distribution

  • Incentive Manager: 33%
  • Core Contributing Team: 20%
  • Ecosystem & R&D: 20%
  • Backers: 14%
  • Public allocation: 8%
  • Community Pool: 5%

Vesting schedule and unlocking timeline

Vesting schedule

Category Unlock Schedule Genesis Rolldrop Fully unlocked at genesis Incentivized Testnet Fully unlocked at genesis Incentives Manager [Onchain DAO] Available to governance at genesis (non-circulating) Community Pool [Onchain DAO] Available to governance at genesis (non-circulating) Backers 12-month lockup, followed by a 24-month linear vesting Ecosystem and R&D 33% available immediately, remaining vests linearly over 3 years Core Contributing Team 12-month lockup, followed by a 24-month linear vesting

Dymension’s Investors and Partners

Dymension_s Investors and Partners

Investors:

  • Jump Crypto
  • Spartan Group
  • Arrington Capital
  • CoinFund
  • Morningstar Ventures
  • Polychain Capital
  • Parafi Capital
  • Dragonfly Capital
  • CoinGecko Ventures
  • GAINS Associates
  • Wintermute

Partners: Cosmos Network, Celestia, Avail, Evmos, Agoric, Umee, Stride, Injective

Dymension has received investment from many major cryptocurrency and blockchain venture capital firms, such as Jump Crypto, Spartan Group, Arrington Capital, CoinFund, etc. This indicates that Dymension is seen as a promising project within the Cosmos ecosystem.

Additionally, Dymension is partnering with other blockchain projects and platforms in the Cosmos ecosystem, like Celestia, Avail, Evmos, Agoric, etc. This is aimed at enhancing the integration and expanding the applications of this Modular Blockchain, as well as ensuring the stable growth of Dymension’s token price.

Dymension’s Airdrop information and Airdrop claim

Currently, Dymension has no upcoming airdrop plan at the moment, Unich will update you on this as soon as possible.

Conclusion

Overall, Dymension’s vision of creating a modular, Cosmos-based blockchain ecosystem focusing on rollup-based DApps suggests it has the potential to become a significant player in the evolving world of decentralized applications and cross-chain interoperability.

Unich Analysis believe that with the numerous potentials, Dymension is definitely a well-designed project that is tackling some of the key challenges in the blockchain space. The modular architecture, developer-friendly tools, and focus on scalability, interoperability, and liquidity could make it an attractive option for both developers and users. However, as with any emerging technology, it will be crucial to closely monitor the project’s progress, adoption, and also the successful execution of its roadmap.

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UnichLabs
UnichLabs

Unich is a pioneering blockchain company that enhances freedom for individuals and communities. Our core product is a decentralized trading platform for the Crypto OTC Market


UnichLabs
UnichLabs

Unich is a pioneering blockchain company that enhances freedom for individuals and communities. Our core product is a decentralized trading platform for the Crypto OTC Market

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