Layer 2 has been on the discussion table among the DeFi enthusiasts for years with a mission to make a protocol becomes highly scalable, while not compromising on security and decentralization. While Ethereum has been developing this, Harmony has successfully transcended the blockchain trilemma, allowing you to experience layer 2 now.
We are thrilled to announce that Dopple Finance is scaling up to the next level by becoming ONE of the Harmony. With the traction of $1.25 billion of TTV made on the Binance Smart Chain, we are confident to expand to other chains and have been developing Dopple.Finance to become a cross-chain decentralized exchange.
Now that we are very close to achieving this, the Harmony ecosystem, as part of our strategic moves, will be the first chain outside the BSC for Dopple.
What is Harmony?
Harmony is an open and fast blockchain that runs Ethereum applications with 2-second transaction finality and 100 times lower fees. It uses random state sharding to solve Ethereum’s limitation, “scalability”.
Understanding Blockchain Trilemma
The blockchain trilemma is a concept by Vitalik Buterin that proposes a set of three main issues — decentralization, security, and scalability — that developers encounter when building blockchains, forcing them to ultimately sacrifice one “aspect” for as a trade-off to accommodate the other two.
Transcended the Blockchain Trilemma
Claimed as one of the first protocols to overcome the blockchain trilemma, here’s how the Harmony team did it;
- Random State Sharding — divide not only the network nodes but also the blockchain states into shards, scaling linearly in all three aspects of machines, transactions, and storage to provide security and decentralization. To prevent single shard attacks, a sufficiently large number of nodes per shard and cryptographic randomness are required to re-shard regularly. Each shard has 250 nodes for a strong security guarantee against Byzantine behaviors. Harmony uses Verifiable Delay Function (VDF) for unbiasable and unpredictable shard membership
- Fast Consensus with Instant Finality in 1-Block — Harmony has innovated on the battle-tested Practical Byzantine Fault Tolerance (PBFT) for fast consensus of block transactions. The Fast BFT (FBFT) leads to low transaction fees and 1-block-time finality on Harmony Mainnet. Harmony uses Boneh–Lynn–Shacham (BLS) constant-sized signatures to commit blocks in a single round of consensus messages, achieving a 2-second block time with view changes in production against adversarial or unavailable leaders
- Effective Proof-of-Stake (PoS) — Harmony has designed a novel Proof-of-Stake (PoS) mechanism for network security and economics. The Effective Proof-of-Stake (EPoS) reduces centralization and distributes rewards fairly to thousands of validators. A staking mechanism supports delegation and reward compounding. To support 100% uptime but fully open participation, EPoS slashes validators who double-sign and it penalizes elected but unavailable nodes
The First Stablecoin Exchange on the Harmony
As the Harmony ecosystem expands and grows, it’s natural to include more variety of stablecoins for users to circulate in the economy. Therefore, our stablecoins swap will serve as an instrument to help transform the Harmony ecosystem for the better.
Our goal is to provide the Harmony community with a low-slippage swap which will further incentivize fund flows and investments. Dopple will help reduce the cost of on-chain trading, especially in large volumes.
We are looking to expand our service on October 2021 with a simple stablecoin exchange and later open up for more possibilities and grow together.
Expanding to the Harmony is not only to maximize the opportunity to early integrate with the layer-2 protocol but to also mark our first step to enable Dopple Finance as a cross-chain exchange, allowing us to further expand to various high potential blockchains in the near future where opportunities await.
Understanding DeFi: Layer 2 explained — https://medium.com/monolith/understanding-defi-layer-2-explained-6981ef6c8990
Sharding — https://harmony.one/whitepaper.pdf
The Blockchain Trilemma: Decentralized, Scalable, and Secure — https://medium.com/certik/the-blockchain-trilemma-decentralized-scalable-and-secure-e9d8c41a87b3
Verifiable Delay Function (VDF) — https://www.youtube.com/watch?v=_-feyaZZjEw
Practical Byzantine Fault Tolerance (PBFT) — https://www.geeksforgeeks.org/practical-byzantine-fault-tolerancepbft/
Boneh–Lynn–Shacham (BLS) — https://en.wikipedia.org/wiki/BLS_digital_signature
Effective Proof-of-Stake — https://docs.harmony.one/home/general/technology/effective-proof-of-stake