Layer 1 projects in cryptocurrency allow for decentralized apps (dApps) to be built on the blockchain, but layer 0 projects drive cross-chain interoperability between layer 1 projects, thus helping different nodes to communicate with one another.
In order to harness the power of layer 0 protocol, the team at Analog set out to fill a gap in event data. And thus, Analog built the world’s first layer 0, omnichain platform that leverages proof-of-time (PoT) to validate event data.
The current landscape for event data—events recorded in dApps or centralized apps (cApps)—is at best fragmented, with multiple, independent time nodes all operating in isolation. At the moment, there’s no efficient way for these separate nodes to collaborate with each other and transfer data back and forth.
“Our mission is clear and simple: we’re here to organize the world’s time data and make it universally accessible and useful to all.”
How Blockchain Layers Work
Blockchains are highly secure due to the lack of a centralized authority. Layers were created in response to the need for scalability while maintaining top-notch security.
One of the most significant challenges for blockchain-based solutions is scalability. Analog’s platform was developed to be used for a variety of purposes, including event data validation and cross-chain transfer of event data from one network to another. It acts as the root layer, allowing all layer 1 protocols such as Bitcoin, Cardano, Ethereum, and layer 2 protocols to communicate with one other across chains via cross-chain interoperability, providing for trustless interchain transactability and pooled security.
Analog operates as a relay network that facilitates cross-chain transfer of event data. In doing so, Analog serves as a “pipeline” that links event data from one chain (source) to another chain (target network). The Analog network proposes a novel solution to the blockchain scalability problem – a solution that avoids meddling with the core protocols of existing blockchain networks.
The layer 0 protocol allows users to leverage cross-chain DApps, check data schemas and sources, and implement unique business logic and analytics in addition to overcoming the scalability problem.
As cryptocurrencies become more widely adopted in everyday life, blockchain layers are increasingly necessary to improve interoperability, network security, recordkeeping, and other tasks.
The Binance Smart Chain (Layer 1), for example, was created with Cosmos SDK, Cosmos’ customizable platform for creating blockchains. Some layer 0 projects enable the construction of blockchains on top of them as well as cross-chain interoperability, but they are limited among these blockchain initiatives. This means that these multiple blockchains can communicate, which is a functionality that Layer 1 typically lacks.
Analog aims to enable communication amongst blockchains without the limitations of an ecosystem, it aims for trustless omnichain interoperability amongst all blockchains.
The Blockchain Trilemma
The blockchain trilemma refers to the qualities of an ideal blockchain – security, decentralization, and scalability – and the reality of their strained coexistence. In existing blockchains, prioritizing scalability and decentralization means security takes a hit.
The more decentralized a blockchain is, the higher the volume of transactions there are is to process. This results in the information load on the blockchain being heavier, making it harder to scale. This, in turn, leads to higher processing costs as more people join the network and the demand for resources increases. Focusing on scaling a blockchain, on the other hand, compromises security as this opens the blockchain up to manipulation by malicious users.
The blockchain trilemma suggests that no one has developed a blockchain that can provide decentralization, scalability, and security all at once. At best, existing blockchains can only satisfy two of these elements simultaneously. Assuming the decentralization is constant, you can’t have scalability without reducing security. With the same scaling level, you can’t have security without limiting the extent of decentralization.
The most obvious case of the blockchain trilemma is demonstrated in the Ethereum network, whose demands have increased dramatically as DeFi adoption has gone up. Unfortunately, Ethereum can only improve its performance up to a certain point, so the network has to keep making inevitable trade-offs. So far, while the Ethereum fees have gone up, it has been impossible to scale without compromising the network’s security.
It’s no secret that blockchains like Bitcoin and Ethereum are currently limited in terms of scalability. As a result, a global community of start-ups, companies, and technologists is working feverishly on layer 0, layer 1, and layer 2 solutions to overcome the blockchain trilemma.
Layer 1 blockchain networks are built to be fast, secure, and expandable. Layer 2 refers to technology advancements and solutions that can scale existing blockchain networks. Getting the right mix between the two layers, and combining that approach with layer 0, might be a game-changer for blockchain adoption and decentralized network expansion.
How Analog is using Layer 0 to validate event data
Analog has launched the first platform based on Layer 0 technology, designed to validate event data. The team at Analog has essentially built the world’s first true interoperable layer 0 omnichannel platform powered by Proof-of-Time.
Analog is attempting to level the playing field for all participants.
The Analog network is the first practical attempt to use Proof-of-Time (PoT) consensus to help the world transition from an “event data siloes” to a “validated event-driven” environment. Blockchains that run on PoW consensus are only beneficial for participants with more computational resources, while PoS-powered blockchains only benefit those with more coins. In the PoT algorithm, anyone can become a validator of this data and participate in consensus.
The PoT protocol is triggered when publishers send event data from outside the network or the network’s tesseract nodes fetch event data from an external blockchain. This data is then verified twice before being appended to the Analog Timechain.
Analog prioritizes interoperability in addition to solving the challenge of event data verifiability. The network creates a layer-0 platform that is fundamentally decentralized, safe, and trustless, allowing different networks such as Bitcoin and Ethereum to anchor their transactions.
Most notably, the Analog Timegraph uses zero-knowledge proofs (ZKPs) to construct a certified event data pipeline that enterprises may use privately to power the next generation of time-dependent dApps; the Ubers, Foodpandas, and Amazons of Web3. Unlike existing Blockchain application programming interface (API) models that rely on third-party oracles, Analog’s Timegraph API allows data suppliers to become their own Timechain oracles. This generates an entirely new marketplace of event data that will power the next generation of dApps.
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