Systems built on the blockchain are enhanced by the security and efficiency afforded by distributed ledger technology. Transactions and events are irreversibly encrypted in successive blocks that then enable permanent verification. These are also inherently secure from tampering due to the distributed nature of the network.
So far, there have been many different ways in which new systems are harnessing these advantages. For example, supply chains would naturally benefit from these features, due to their clear transaction schema and their interconnected complexity.
Blockchain technology also enables new disruptive forms of exchange in the form of cryptocurrencies, ensuring even more disruption of decentralized finance (DFI) and non-fungible tokens (NFTs). Yet, so far no project has thought of using blockchain technology for something more fundamental: to transact with event data.
Analog’s ambition is to do just that, irreversibly recording on-chain data, and according to the company, its mission is to leverage validated event data for cross-chain communications and asset transfers.
Analog Networks is the first realistic attempt to help the world achieve all-chain interoperability through validated event data. It establishes a fundamentally decentralized, secure and trustworthy layer where multiple networks such as bitcoin and ethereum can anchor their transactions. Most importantly, Analog TimeGraph creates a valid record and pipeline of event data that developers of decentralized applications can leverage to power the next generation of applications. In addition to dApp developers, Analog enables users to interact with all dApps in the entire blockchain ecosystem directly from their wallets.
Unlike other Blockchain Application Programming Interface (API) models that involve the use of third-party oracles, Analog’s TimeGraph API allows data providers to become their own oracles on TimeChain. This creates an entirely new event data marketplace that is poised to power the next generation of dApps.
stay relevant for the long term
NFTs tend to decline in value over time, and history shows that a small percentage of them remain relevant, preventing sellers from selling them for a profit. An NFT swapping marketplace can allow users to easily exchange newly minted assets at a higher price, allowing them to make a profit in the process. For example, an NFT marketplace may offer users the facility to trade NFTs for other NFTs or NFT(s) for cryptocurrencies such as ETH or BTC.
However, due to the tacit nature of the blockchain, these processes can only take place on the parent chain that mines NFTs. For example, NFTs minted on Ethereum cannot be seamlessly swapped for BNB on Binance Smart Chain (BSC) or Avalanche.
With Analog’s Cross-Chain Event Data Transfer (XCEDT) protocol, users can easily swap NFTs between different chains via a universal wallet. For example, NFTs on Ethereum can be exchanged for BSC or Avalanche. Ethereum-based NFTs can also act as collateral in DeFi applications on any chain.
In fact, analog works with normalized event data from different nodes on the way channeling through the network. Anyone or anything can be a node, provided they have accumulated a certain amount of ANLog tokens and have accumulated a Trust Index score. These nodes are then incentivized to propose and confirm blocks to Analog’s timeline.
Similarly, any node can become a tesseract and participate in the interoperability process. You can think of tesseracts as specialized publishers that receive and relay event data across multiple chains. Like publishers, tesseracts also receives payments directly from subscribers, and their trust index increases each time they successfully publish event data.
Event data can enter the timechain through an oracle and is then cross-verified and later hashed by Analog’s consensus mechanism known as proof-of-time (POT). Instead of accounting for work done or stake held, PoT validates event data based on a node’s ranking score – its validation accuracy and time spent on the network – and is determined by a certain stake. Therefore, provided that a node has accumulated a high ranking score and accumulated the same amount of tokens, it can easily participate in the consensus process, unlike PoW or PoS protocols, which have higher barriers to entry.
future plans
Within the past year, Analog published its timepaper, outlining the project from concept to use cases, building the algorithms behind PoT, and launching a testnet soon.
Over the next 12 months, Analog intends to roll out the power of validated event data in cross-chain communication, a cross-chain interface in Timechain’s PoT-based Genesis Block and zk-STARKs-based transactions on the mainnet.
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