About Blocknet

Intro

Imagine being able to run Ethereum or NEO smart contracts from Bitcoin, build complex multi-chain trades, run a decentralized exchange, create a blockchain microservice that other chains can consume, all while remaining 100% trustless and decentralized. The Blocknet is a protocol which enables this interoperability through cross-chain atomic swaps and cross-chain data transfer in order to create a token ecosystem for blockchain microservices.

What Blocknet Is

The Blocknet is infrastructure for the coming "inter-blockchain era", an emerging technology epoch characterised primarily by the superseding of the current API ecosystem with an intrinsically monetizable "token ecosystem".

If blockchains are to achieve their true potential, then broad, generic interoperability between blockchain services is required. Without inter-chain interoperability, blockchain-based services will either (a) deliver services only within the confines of the limited customer base that runs its nodes, or sacrifice the unique security properties of blockchains in delivering to centralized entities, and (b) face enduring problems with chain bloat and, relatedly, the market-related pressure to build further features onto a single chain.

From a software-as-a-service (SaaS), the token ecosystem embodies two fundamental advancements: (a) the comparatively frictionless monetisation of services, and (b) the leveraging of the unique robustness, decentralization, and security properties of blockchain technology.

By creating an "internet of blockchains", the Blocknet is positioned to enable the frictionless monetisation of APIs, and in doing so, to empower blockchain technology by converting its thousands of isolated chains into a token ecosystem.

What Blocknet Enables

  • The delivery of potentially any kind of digital service from a node on any blockchain to another.
  • The ability for any given blockchain service to function not as an "appcoin" but as a "protocol service", that is, to be consumable by any other dapp anywhere instead of only by its community(chain), thus greatly enlarging the service's market reach and potential revenue stream.
  • The ability for smart contracts to function not as "dapps" but as "protocol tokens," where code quality is enhanced by a broad contributor-base of developers from diverse communities, preventing chain bloat and the duplication of code and labour. Developers can therefore deliver services to the entire blockchain-consuming market, instead of the users of one blockchain.
  • The ability to create dapps with a multi-chain architecture, leveraging relevant services no matter which chain they are available on, removing the current need to commit to one blockchain.
  • The capacity for a microservices architecture on which each blockchain delivers a single service, integrated with many others in a modular fashion, providing simpler component design, easier bug-fixing, and smoother upgrading.
  • The monetisation of inter-chain and multi-chain services, using their intrinsic tokens of value.
  • The full exploitation of new, cryptoeconomically-driven business models ushered in by blockchain technology, in which a business may extract value from a "better than free" model: from monetary policy directly (ICOs, transaction fees, deflationary economics, etc), and from a marketplace for its monetized APIs.

How It Works

To support inter-blockchain services, the Blocknet has three core components, which work together to provide three core services.

  • The core components are:
    • A blockchain router, xbridgep2p™
    • A coin exchange protocol
    • An inter-chain data transport
  • The core services are:
    • Decentralized exchange of coins
    • Inter-blockchain service delivery
    • Service monetisation

Supported Coins

Any coin that supports OP_CHECKLOCKTIMEVERIFY and has a stock JSON RPC interface cloned from Bitcoin Core will be Blocknet compatible. As a result, the Blocknet supports the majority of cryptocurrencies in existence, and no permission from anyone is required.

The following is a list of coins which have been tested and are confirmed to be supported:

BitBay (BAY), Bitcoin (BTC), Bitcoin Cash (BCH), Blocknet (BLOCK), Dash (DASH), Decred (DCR), Digibyte (DGB), Dogecoin (DOGE), Dynamic (DYN), GameCredits (GAME), Faircoin (FAIR), HShare (HSR), LBRY Credits (LBC), Litecoin (LTC), Monacoin (MONA), MonetaryUnit (MUE), Namecoin (NMC), NavCoin (NAV), Particl (PART), Peercoin (PPC), PIVX (PIVX), Potcoin (POT), Qtum (QTUM), Sequence (SEQ), Stratis (STRAT), Syscoin (SYS), Vericoin (VRC), Verge (XVG), Vertcoin (VTC), ViaCoin (VIA)

Videos demonstrating atomic swaps performed on the Blocknet may be found here.

In addition, Blocknet will also support Ethereum(ETH) and all ERC20 tokens through 0x protocol integration.

Roadmap

Completed

  • Oct/Nov 2014: ITO ("initial token offering")
  • Dec 2014: First messages sent across blockchains (data transport proof-of-concept)
  • Mar 2015: Partnership with Bitnation forged
  • Mar 2015: Decentralized exchange UI/UX: business logic and mockups
  • Apr 2015: Blocknet Think Tank launched; breadth of scope of the Blocknet seen to extend to the entire token ecosystem
  • May 2015: Ethereum collaboration; commitment to integrate ETH
  • Oct 2015: Decentralized exchange v.1 (proof-of-concept)
  • Dec 2015: Blockchain router v.1
  • Mar 2016: Decentralized exchange v.2 (TierNolan's algo, no CLTV)
  • Aug 2016: Decentralized exchange v.3 (CLTV: nonmalleable design)
  • Sept 2016: Debugging and testing; order book
  • May 2017: Service node design: QoS provider concept
  • Jun 2017: Decentralized exchange app: specification documentation complete (for UI/UX partner)
  • Jul 2017: Production blockchain: work commences
  • Sept 2017: Production blockchain launched
  • Sept 2017: Service nodes launch on mainnet
  • Oct 2017: VSA Partners announced as the major design firm that is developing the UI/UX
  • Oct 2017: Blocknet "Toolkit" website goes live (site that lists supported coins, config files, docs, other data)
  • Nov 2017: DEX UI Reveal

Upcoming

Note: Upcoming milestones are subject to change, and some require new ground be broken in crypto, and thus are to be interpreted as intents, not commitments. Development is in an agile manner and so continual progress is to be expected.

  • New UI integration
  • SPV wallets
  • "Toolkit" site that lists supported coins, their config files, documentation, and other data (ishkb1)
  • TradingView integration work (Core Team)
  • Bot "skeleton" in Python for easy DX bot building (infinity7592)
  • DX API enhancements (Core Team)
  • DX order book enhancements (Core Team)
  • Visual DX explorer (infinity7592)
  • Monthly quant report (courtesy of FinancialFactory.com)
  • New Blocknet website
  • New DX website
  • Analytics site (think bfxdata.com, but for a DX)
  • First demo/testing cycles of the DX frontend
  • 0x integration (addition of Ethereum and all ERC20 tokens to the DX)
  • Ethfinex integration (Bitfinex's order book on the DX)

Protocol

The Blocknet protocol was designed to maximise inter-chain interoperability and allow for the decentralized exchange of coins, inter-blockchain service delivery, and monetization of services. This is made possible through the protocol's decentralized three core components: blockchain router, decentralized asset exchange, and data transport.

Blockchain Router

The purpose of the router is to trustlessly direct service requests through the proper service nodes. For example, let's say there is an exchange to trade PIVX for Syscoin. Not all service nodes may support PIVX and Lisk. Therefore, the router will send this transaction through a service node which does support the assets at hand in order to complete the exchange and collect the fee.

Decentralized Asset Exchange

The exchange component allows for trustless transactions between different blockchains. Cross-chain atomic swaps may be performed between any asset that is supported by the protocol. Any asset that has a stock JSON RPC interface cloned from Bitcoin Core and supports OP_CHECKLOCKTIMEVERIFY is compatible. As a result, the Blocknet supports the majority of cryptocurrencies in existence, and no permission from anyone is required.

Cross-Chain Data Transport

The third component of the protocol is trustless cross-chain data transport. This component allows for data and information to be sent from one chain to another, greatly increasing interoperability and the potential use-cases and implementations of this protocol.

Supported Coins

Any coin that supports OP_CHECKLOCKTIMEVERIFY and has a stock JSON RPC interface cloned from Bitcoin Core will be Blocknet compatible. As a result, the Blocknet supports the majority of cryptocurrencies in existence, and no permission from anyone is required.

The following is a list of coins which have been tested and are confirmed to be supported:

BitBay (BAY), Bitcoin (BTC), Bitcoin Cash (BCH), Blocknet (BLOCK), Dash (DASH), Decred (DCR), Digibyte (DGB), Dogecoin (DOGE), Dynamic (DYN), GameCredits (GAME), Faircoin (FAIR), HShare (HSR), LBRY Credits (LBC), Litecoin (LTC), Monacoin (MONA), MonetaryUnit (MUE), Namecoin (NMC), NavCoin (NAV), Particl (PART), Peercoin (PPC), PIVX (PIVX), Potcoin (POT), Qtum (QTUM), Sequence (SEQ), Stratis (STRAT), Syscoin (SYS), Vericoin (VRC), Verge (XVG), Vertcoin (VTC), ViaCoin (VIA)

Videos demonstrating atomic swaps performed on the Blocknet may be found here.

In addition, Blocknet will also support Ethereum(ETH) and all ERC20 tokens through 0x protocol integration.

Nodes

The Blocknet consists of three types of nodes: service nodes, staking nodes, and trading nodes. The service and staking nodes are a network requirement while all three are a protocol requirement.

Service Node

Role: Service nodes provide a dual purpose: confirm network transaction and to collect and distribute trade fees. Typically a service node operator will run multiple full node wallets of whichever coins (s)he wants to support, in order to garner as many trade fees as possible.

Earnings: Service nodes earn 0.7 BLOCK from every block "won". The probablility to receiving a block reward is proportional to the amount of service nodes on the network. Additionally, service nodes will receive a share of the fees collected for trades conducted on the entire network proportional to the amount of service nodes on the network. For example, if the entire network collect $50M in fees and there's 500 service nodes, then each service node will receive $100k.

Requirements:
  • 5000 BLOCK
  • Two computers - one to host node, one to host wallet
  • Node computer must be running at all times
Resources:
Service Node Setup Guide
xbridge Configuration Files
Asset Configuration Files
Earning Calculator

Staking Node

Role: The purpose of the staking nodes is to confirm network transactions.

Earnings: Staking nodes earn 0.3 BLOCK from every block "won". The probablility to receiving a block reward is proportional to the amount of BLOCK present in the wallet. These rewards will yield an average of roughly 9% return per year.

Requirements:
  • BLOCK in the wallet(no minimum)
  • Wallet must be running at all times
Resources:
Staking Node Setup Guide
Earning Calculator

Trading Node

Role: Trader nodes enable one to trade on the decentralized exchange. In the coming months, SPV wallets will be implemented and much of this process will be automated, make trading available to the general public.

Requirements:
  • Synced wallet of each currency you want to trade
Resources:
Trader Node Setup Guide

Supported Coins

Any coin that supports OP_CHECKLOCKTIMEVERIFY and has a stock JSON RPC interface cloned from Bitcoin Core will be Blocknet compatible. As a result, the Blocknet supports the majority of cryptocurrencies in existence, and no permission from anyone is required.

The following is a list of coins which have been tested and are confirmed to be supported:

BitBay (BAY), Bitcoin (BTC), Bitcoin Cash (BCH), Blocknet (BLOCK), Dash (DASH), Decred (DCR), Digibyte (DGB), Dogecoin (DOGE), Dynamic (DYN), GameCredits (GAME), Faircoin (FAIR), HShare (HSR), LBRY Credits (LBC), Litecoin (LTC), Monacoin (MONA), MonetaryUnit (MUE), Namecoin (NMC), NavCoin (NAV), Particl (PART), Peercoin (PPC), PIVX (PIVX), Potcoin (POT), Qtum (QTUM), Sequence (SEQ), Stratis (STRAT), Syscoin (SYS), Vericoin (VRC), Verge (XVG), Vertcoin (VTC), ViaCoin (VIA)

Videos demonstrating atomic swaps performed on the Blocknet may be found here.

In addition, Blocknet will also support Ethereum(ETH) and all ERC20 tokens through 0x protocol integration.



For additional help with setting up your wallet or node, join our Rocket Chat community and visit the #servicenode-setup and #wallet-support channels.

DEX

The Blocknet's decentralized exchange, DX, is just one implementation of what can be made using Blocknet's protocol. This exchange will also help create the liquidity needed for the protocol to function efficiently. Using the protocol, the DX is able to decentralize the four core functions of an exchange: capital deposits, order broadcasts, order matching, and the exchange of assets.

The Blocknet decentralizes them in the following ways:

  • Traders' capital remains in their wallets, and is not entrusted to a third party at any stage.
  • Orders are broadcast directly from trader to trader over an inter-blockchain DHT network overlay. Traders' apps compile an order book themselves instead of relying on a central order book service.
  • Orders are matched directly between traders. When one accepts another's order, their apps communicate to set up the coin exchange process, and this is broadcast over the inter-chain network.
  • The exchange of tokens is achieved without the involvement of an intermediary, in a manner that does not require counterparties to trust one another beforehand. An atomic protocol is utilised (meaning that either the exchange of both currencies takes place, or nothing takes place), which employs OP_CHECKLOCKTIMEVERIFY to nullify transaction malleability-based attacks. More details on the protocol are available here.

What Is a Decentralized Exchange?

A decentralized exchange is a service enabling counterparties (which may be people or machines) to exchange one asset for another, without the involvement of any third party as an intermediary.

The term "decentralized" denotes matters of control rather than the distribution of processing; the ideal of a decentralized solution is for the parties to a given interaction to be self-sovereign actors, in the sense that no third party is required to act on their behalf in order for the interaction to take place.

Speed of the Exchange

Instant.

However, note that once you have completed a trade and received coins, you will be dependent on their blockchain's accepted confirmation time before your coins will be spendable again.

Note: A future enhancement to the decentralized exchange may include a filter on the order book to enable traders to trade coins with less than the number of confirmations conventionally agreed upon as "safe". This incurs a degree of risk for the benefit of supporting trading styles that require rapidly entering and exiting a position, such as scalping.

Fee Structure

There are fees, though they are significantly lower that centralised exchanges. The fee structure is as follows:

  • Transactions over the networks of each of your currency pairs will remain subject to their normal network fees for P2SH transactions.
  • Currently, there is a standard rate of 0.025 BLOCK per trade in place. At the time the new UI will be implemented, this fee will be percent based, but within a specific range and bound. The trade fee is charged in BLOCK and the software takes care of securing some BLOCK to pay the fee (BLOCK is not needed to use the protocol or DEX).

The DX will let people change their bid/ask without fees and only charge when a trade happens. Since we wont have large server expenses no matter how many active traders there are, our overhead will be the lowest in the industry. This will allow BlocknetDX to have lower fees initially to gain marketshare.

Requirements

In the coming months, after much automation is put in place and SPV wallets are enabled, there will be little to no setup needed and enable users with no extra technical experience to participate and use the exchange. Our goal is to automate as much as possible and to continue lowering the barrier to entry.

Supported Coins

Any coin that supports OP_CHECKLOCKTIMEVERIFY and has a stock JSON RPC interface cloned from Bitcoin Core will be Blocknet compatible. As a result, the Blocknet supports the majority of cryptocurrencies in existence, and no permission from anyone is required.

The following is a list of coins which have been tested and are confirmed to be supported:

BitBay (BAY), Bitcoin (BTC), Bitcoin Cash (BCH), Blocknet (BLOCK), Dash (DASH), Decred (DCR), Digibyte (DGB), Dogecoin (DOGE), Dynamic (DYN), GameCredits (GAME), Faircoin (FAIR), HShare (HSR), LBRY Credits (LBC), Litecoin (LTC), Monacoin (MONA), MonetaryUnit (MUE), Namecoin (NMC), NavCoin (NAV), Particl (PART), Peercoin (PPC), PIVX (PIVX), Potcoin (POT), Qtum (QTUM), Sequence (SEQ), Stratis (STRAT), Syscoin (SYS), Vericoin (VRC), Verge (XVG), Vertcoin (VTC), ViaCoin (VIA)

Videos demonstrating atomic swaps performed on the Blocknet may be found here.

In addition, Blocknet will also support Ethereum(ETH) and all ERC20 tokens through 0x protocol integration.