Dymension is a Modular Blockchain built with the Cosmos SDK to create connectivity to the Cosmos ecosystem through the IBC Bridge.
Dymension is a “home” for RollApps (rollup applications), allowing users to interact directly. Let’s explore it with AZCoin.
What is Dymension?
Dymension is Modular Blockchain built with the Cosmos SDK to enable connectivity to the Cosmos ecosystem via the IBC Bridge. Dymension is built with the goal of being a “home” for RollApps (rollup applications) such as DeFi, gaming or NFT platforms to allow users to interact directly in the most convenient way.
Dymension operates on a Proof-of-Stake consensus mechanism and is powered by the Cosmos SDK through the Tendermint software. Additionally, Dymension also serves as a foundation for RollApp development by providing a lower layer (Consensus, Settlement) that can connect to the upper layer. Data Availability (DA) belongs to Celestia and Available.
Structure of Dymension
RollApp
RollApp is an appchain built and developed by Dymension based on Dymension RDK (RollApp Development Kit). Dymension RDK is a toolkit inspired by Cosmos SDK but has been tweaked to fit a Rollup Chain.
Dymension RDK enables RollApp to deploy smart contract frameworks including EVMOS EVM, Polaris EVM and CosmWasm. From here, RollApp is considered a part of the Inter Blockchain Communication (IBC) ecosystem when it is able to interact with all IBC-supported chains and use Dymension Hub.
However, the difference of RollApp is that it delegates consensus to Dymension Hub instead of to Cosmos Hub like other appchains on Cosmos.
Dynamic Hub
Dymension Hub is a blockchain that uses Delegated Proof-of-Stake consensus and serves as the authentication, security, and liquidity center for RollApps in the Dymension ecosystem. In addition, Dymension Hub also serves as the settlement layer and a decentralized data source for the entire Dymension network.
The network’s native DYM token will be used to pay network fees and will be implemented through an AMM on the Dymension Hub itself. This AMM will provide liquidity for users to swap tokens or bridge assets cross-chain. RollApps will easily integrate the AMM to provide liquidity and support trading on certain appchains.
Data Availability Network
The Data Availability Network acts as a database to feed RollApps as needed. Data in Dymension’s Data Availability Network is stored temporarily and distributed to ensure cost efficiency and decentralization.
How Dymension Works
When users make transactions on RollApp, the transactions will be validated by the Sequencer and then grouped into a block. Then, the Sequencer sends that block as “Call Data” to the Dymension Hub and sends the transaction proof of that block to the DA layer.
After the DA layer returns the path where the proof is stored, the Sequencer will confirm the current state of the RollApp and send the state information, also known as the State Root, along with the path of the proof to the Dymension Hub.
Since blocks are created in an optimized manner and do not require active network validation, Sequencer can create blocks with relatively low request times. RollApps can maintain an average transaction latency of 0.2 seconds with a maximum TPS of around 20,000 transactions.
In addition, Dymension allows RollApps to communicate with each other through the IBC Bridge issued by Cosmos to easily interact with Layer 1s of the Cosmos ecosystem.
Assets are secured on the original chain and created on the target chain. Transactions validated by Dymension Hub ensure they are quick and very secure.
Dymension Highlights
- Easy to deploy RollApp: Developers can use the Dymension RDK toolkit to deploy RollApp easily on Dymension. Once deployed, RollApp can be customized with parameters like tokens, smart contracts, and more, according to the developers’ preferences.
- High Performance Network: As RollApp uses Dymension Hub’s consensus mechanism, they are able to provide a high throughput with lower latency than other blockchains. This additionally offers improved performance for RollApps that handle large transaction volumes on the Dymension network.
- Flexible transaction fee payment: In addition to paying transaction fees with native DYM tokens, users can use any token that Dymension supports to pay transaction fees.
Basic information about DYM token
- Token Name: Dynamic
- Token Ticker: DYM
- Blockchain: Dynamic Contract
- Token Usefulness: Utilities
- Total Token Supply: 1,000,000,000 DYM
- Current Circulating Supply: 146,000,000 DYM
DYM Token Allocation
- Incentive Manager: 33%
- Core Contributing Team: 20%
- Ecosystem & R&D: 20%
- Backers: 14%
- Public allocation: 8%
- Community Pool: 5%
What is DYM token used for?
DYM is Dymension’s native token and is used in the following cases:
- Users use DYM to interact with RollApps within the Dymension ecosystem.
- Users can delegate staking to validators or become validators themselves in the network to earn rewards.
- Used as airdrop rewards for users.
Where can investors trade DYM tokens?
Currently, investors can trade DYM tokens at:
- CEX exchanges: Binance, Bybit, KuCoin,…
- DEX Exchanges: DODO (Polygon) and Jupiter .
Aside from DYM tokens, investors can transact other coins like Zcash or Astra Coin, by subscribing to open a wallet or creating an account on the exchange as prompted on the best crypto exchanges 2024 page.
In which wallets can investors store DYM tokens?
Investors can store DYM tokens in wallets such as Metamask, Keplr Wallet, Trust Wallet and Leap Wallet. For convenience in trading, investors can also store DYM in the wallets of exchanges that list this token.
Dymension Investors
Dymension has successfully raised more than 6.7 million USD from Seed round with the participation of investment funds including: Big Brain Holdings, Stratos Technologies, Matchbox DAO,…
Partner
Currently, Dymension is collaborating with the following projects: Wormhole, Avail, Celestia, Near,…
Summary
Dynamic is 1 Modular Blockchain built with the Cosmos SDK to enable connectivity to the Cosmos ecosystem via the IBC Bridge. Dymension is built with the goal of being a “home” for RollApps (rollup applications) such as DeFi, gaming or NFT platforms to allow users to interact directly in the most convenient way.
Through this article, you have probably grasped some basic information about the Dymension project to make your own investment decisions. If you have any questions or feedback, don’t hesitate to leave a comment below or contact us, and we’ll help you out!
I am Tony Vu, living in California, USA. I am currently the co-founder of AZCoin company, with many years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
Email: [email protected]
