DGT DOCS
  • 1. INTRODUCTION
    • 1.1 Executive Summary
    • 1.2 Why DGT
    • 1.3 Distributed Ledgers Technology
      • 1.3.1 Decentralization approach
      • 1.3.2 Consensus Mechanism
      • 1.3.3 Transactions
      • 1.3.4 Layered Blockchain Architecture
      • 1.3.5 Tokenomics
      • 1.3.6 Web 3 Paradigm
      • 1.3.7 Common Myths about Blockchain
    • 1.4 The DGT Overview
      • 1.4.1 Platform Approach
      • 1.4.2 DGT Functional Architecture
      • 1.4.3 Technology Roadmap
    • 1.5 How to create a Solution with DGT Networks
    • 1.6 Acknowledgments
  • 2. REAL WORLD APPLICATIONS
    • 2.1 Case-Based Approach
      • 2.1.1 DGT Mission
      • 2.1.2 The Methodology
      • 2.1.3 Case Selection
    • 2.2 Supply Chain and Vertical Integration
      • 2.2.1 Logistics Solution for Spare Parts Delivery
      • 2.2.2 DGT Based Solution for Coffee Chain Products
    • 2.3 Innovative Financial Services
      • 2.3.1 Crowdfunding Platform
      • 2.3.2 Real World Assets Tokenization
      • 2.3.3 Virtual Neobank over DGT Network
      • 2.3.4 DGT based NFT Marketplace
    • 2.4 Decentralized Green Energy Market
      • 2.4.1 Peer To Peer Energy Trading
      • 2.4.2 DGT based Carbon Offset Trading
    • 2.5 B2B2C Ecosystems and Horizontal Integration
      • 2.5.1 KYC and User Scoring
      • 2.5.2 Decentralized Marketing Attribution
      • 2.5.3 Case Decentralized Publishing Platform
      • 2.5.4 Value Ecosystem
    • 2.6 More Cases
  • 3. DGT ARCHITECTURE
    • 3.1 Scalable Architecture Design
      • 3.1.1 High Level Architecture
      • 3.1.2 DGT Approach
      • 3.1.3 Unique contribution
      • 3.1.4 Component Based Architecture
    • 3.2 Performance Metrics
    • 3.3 Network Architecture
      • 3.3.1 Nework Architecture in General
      • 3.3.2 Network Identification
      • 3.3.3 H-Net Architecture
      • 3.3.4 Transport Level
      • 3.3.5 Segments
      • 3.3.6 Static and Dynamic Topologies
      • 3.3.7 Cluster Formation
      • 3.3.8 Node Networking
      • 3.3.9 Permalinks Control Protocol
    • 3.4 Fault-Tolerant Architecture
      • 3.4.1 Introduction to Fault Tolerance
      • 3.4.2 F-BFT: The Hierarchical Consensus Mechanism
      • 3.4.3 Cluster Based Algorithms
      • 3.4.4 Arbitrator Security Scheme
      • 3.4.5 Heartbeat Protocol
      • 3.4.6 Oracles and Notaries
      • 3.4.7 DID & KYC
    • 3.5 Transactions and Performance
      • 3.5.1 Transaction Basics
      • 3.5.2 Transaction Processing
      • 3.5.3 Transaction and block signing
      • 3.5.4 Transaction Families
      • 3.5.5 Transaction Receipts
      • 3.5.6 Smart Transactions
      • 3.5.7 Private Transactions
      • 3.5.8 Multi signature
    • 3.6 Data-Centric Model
      • 3.6.1 Data layer overview
      • 3.6.2 Global State
      • 3.6.3 Genesis Record
      • 3.6.4 Sharding
      • 3.6.5 DAG Synchronization
    • 3.7 Cryptography and Security
      • 3.7.1 Security Architecture Approach
      • 3.7.2 Base Cryptography
      • 3.7.3 Permission Design
      • 3.7.4 Key Management
      • 3.7.5 Encryption and Decryption
      • 3.7.6 Secure Multi Party Computation
      • 3.7.7 Cryptographic Agility
      • DGTTECH_3.8.4 Gateway Nodes
    • 3.8 Interoperability
      • 3.8.1 Interoperability Approach
      • 3.8.2 Relay Chain Pattern
      • 3.8.3 Virtual Machine Compatibility
      • 3.8.4 Gateway Nodes
      • 3.8.5 Token Bridge
    • 3.9 DGT API and Consumer Apps
      • 3.9.1 Presentation Layer
      • 3.9.2 Application Architecture
    • 3.10 Technology Stack
    • REFERENCES
  • 4. TOKENIZATION AND PROCESSING
    • 4.1 Introduction to Tokenization
      • 4.1.1 DGT Universe
      • 4.1.2 Driving Digital Transformation with Tokens
      • 4.1.3 Real-World Tokenization
      • 4.1.4 Key Concepts and Definitions
    • 4.2 Foundations of Tokenization
      • 4.2.1 Definition and Evolution of Tokenization
      • 4.2.2 Tokenization in the Blockchain/DLT Space
      • 4.2.3 The Tokenization Process
      • 4.2.4 Tokenization on the DGT Platform
      • 4.2.5 Regulatory and Legal Aspects of Tokenization
      • 4.2.6 Typical Blockchain-Based Business Models
    • 4.3 The DEC Transaction Family
      • 4.3.1 DEC Transaction Family Overview
      • 4.3.2 DEC Token Features
      • 4.3.3 DEC Token Protocol
      • 4.3.4 DEC Account Design
      • 4.3.5 DEC Transaction Family Flow
      • 4.3.6 DEC Commands
      • 4.3.7 DEC Processing
      • 4.3.8 Payment Gateways
    • 4.4 Understanding Secondary Tokens
      • 4.4.1 The different types of tokens supported by DGT
      • 4.4.2 How secondary tokens are produced
  • 5. EXPLORING TOKENOMICS
    • 5.1 Introduction
      • 5.1.1 What does tokenomics mean?
      • 5.1.2 Goals of Building the Model for DGT Network
      • 5.1.3 Tokens vs Digital Money
      • 5.1.4 The Phenomenon of Cryptocurrency
      • 5.1.5 Basic Principles of Tokenomics
      • 5.1.6 AB2023 Model
    • 5.2 Node & User Growth
      • 5.2.1 Node Ecosystem
      • 5.2.2 User Growth and Retention Modeling
    • 5.3 Transactions
      • 5.3.1 Transaction Amount Components
      • 5.3.2 Shaping the Transaction Profile: A Three-pronged Approach
      • 5.3.3 Calculation of Transaction Number
    • 5.4 Network Performance Simulation
      • 5.4.1 Endogenous Model
      • 5.4.2 Network Entropy
      • 5.4.3 Network Utility
    • 5.5 Token Supply Model
      • 5.5.1 Introduction to Supply and Demand Dynamics
      • 5.5.2 Token distribution
      • 5.5.3 Supply Protocol
      • 5.5.4 Token Balance and Cumulative Supply
    • 5.6 Token Demand Model
      • 5.6.1 Node-Base Demand
      • 5.6.2 Transaction-Based Token Demand
      • 5.6.3 Staking Part Modeling
      • 5.6.4 Total Demand
    • 5.7 Token Price Simulation
      • 5.7.1 Nelson-Siegel-Svensson model
      • 5.7.2 The Price Model
    • 5.8 Decentralization Measurement
      • 5.8.1 Active Node Index
      • 5.8.2 Node Diversity in Hybrid Networks
      • 5.8.3 Token distribution
      • 5.8.4 Integral Calculation of Decentralization Metric
    • 5.9 Aggregated Metrics
      • 5.9.1 Transaction Throughput: Evaluating Network Performance and Scalability
      • 5.9.2 Market Capitalization: A Dimension of Valuation in Cryptocurrency
      • 5.9.3 Total Value Locked (TVL): A Spotlight on Network Engagement and Trust
  • 6. ADMINISTRATOR GUIDE
    • 6.1 Introduction
      • 6.1.1 Administrator Role
      • 6.1.2 Platform sourcing
      • 6.1.3 DGT Virtualization
      • 6.1.4 Using Pre-Built Virtual Machine Images
      • 6.1.5 Server Preparation
      • 6.1.6 OS Setup and initialization
    • 6.2 DGT CORE: Single Node Setup
      • 6.2.1 Launch the First DGT Node
      • 6.2.2 Dashboard setup
      • 6.2.3 Nodes Port Configuration
      • 6.2.4 Single Node Check
    • 6.3 DGT CORE: Setup Private/Public Network
      • 6.3.1 Network launch preparation
      • 6.3.2 A Virtual Cluster
      • 6.3.3 A Physical Network
      • 6.3.4 Attach node to Existing Network
    • 6.4 DGT Dashboard
    • 6.5 DGT CLI and base transaction families
    • 6.6 GARANASKA: Financial Processing
      • 6.6.1 Overview of DGT’s financial subsystem
      • 6.6.2 DEC emission
      • 6.6.3 Consortium account
      • 6.6.4 User accounts
      • 6.6.5 Payments
    • 6.7 Adjust DGT settings
      • 6.7.1 DGT Topology
      • 6.7.2 Manage local settings
    • 6.8 DGT Maintenance
      • 6.8.1 Stopping and Restarting the Platform
      • 6.8.2 Backing up Databases
      • 6.8.3 Network Performance
      • 6.8.4 Log & Monitoring
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  1. 3. DGT ARCHITECTURE
  2. 3.8 Interoperability

3.8.1 Interoperability Approach

Previous3.8 InteroperabilityNext3.8.2 Relay Chain Pattern

Last updated 1 year ago

Interoperability in the context of blockchain refers to the capability of different blockchain networks to interact, communicate and transact with each other. It enables the seamless flow of information, transactions, and value across different blockchain ecosystems, amplifying the reach and utility of individual blockchains.

"An interoperable blockchain architecture is a composition of distinguishable blockchain systems, each representing a unique distributed data ledger, where atomic transaction execution may span multiple heterogeneous blockchain systems, and where data recorded in one blockchain is reachable, verifiable and referenceable by another possibly foreign transaction in a semantically compatible manner."

- NIST NISTIR 8202

Distributed systems form different ecosystems based on different consensus mechanisms. Full integration between such systems is not possible. But interoperability is possible under certain constraints: for roaming assets, for identifiers and trust models, for data.

In the DGT ecosystem, interoperability is achieved through various patterns, each with unique functionalities and use cases. Below, we'll delve into these patterns.

#

Interoperability Pattern

Description

Use Case

1

Relay Chain (cross chain, Level 0)

A Relay Chain enables different blockchains to interact with each other by synchronizing and transferring data and assets between them.

An example would be using the relay chain to transfer assets from DGT's blockchain to another blockchain network.

2

Gateway Nodes (Payment or Data Sourcing)

Gateway nodes act as intermediaries to facilitate cross-chain transactions or to fetch data from external sources.

Payment gateway nodes could enable users to make payments on the DGT network using tokens from another blockchain.

3

Virtual Machines (Compatibility for smart contracts EVM and WASM)

Virtual machines like EVM (Ethereum Virtual Machine) and WASM (WebAssembly) allow the execution of smart contracts, providing compatibility between different blockchains.

Smart contracts developed for Ethereum could run on the DGT network if the same EVM is used, fostering greater developer convenience and application portability.

4

Off-chain Oracles (Get off-chain data, decentralized Id)

Oracles are sources that fetch and verify real-world data and bring it onto the blockchain. They can provide off-chain data to smart contracts.

Oracles can be used to bring real-world data into a smart contract on the DGT blockchain, such as price feeds, weather data, or verifying a user's decentralized identity.

5

Token Bridge (Swap DEC to ETH)

Token bridges enable the transfer of tokens between different blockchains, allowing for increased liquidity and enabling users to leverage different ecosystems' benefits.

A user could use a token bridge to swap DEC tokens for ETH tokens, allowing them to participate in the Ethereum DeFi ecosystem.

6

Atomic Swaps (Swap between tokens over DEC)

Atomic swaps allow users to directly exchange one type of token for another without the need for a central exchange or intermediary.

A user could use an atomic swap to exchange one type of token for another within the DGT ecosystem, all while retaining control of their private keys.

7

Standards (Using crypto algorithms compatible with other blockchain, i.e., ECDSA/Address scheme compatible with Ethereum)

Adherence to established blockchain standards ensures compatibility and interoperability with other blockchains and systems.

By using the ECDSA signature algorithm, DGT addresses could be compatible with Ethereum, enabling seamless interaction between the two ecosystems.

In the context of DGT, the mentioned interoperability patterns - Relay Chain, Gateway Nodes, Virtual Machines, Off-Chain Oracles, Token Bridge, Atomic Swaps, and Standards - serve as different pathways through which the platform can achieve interoperability. Each pattern represents a unique mode of interaction with other blockchains, carrying its unique functionalities and use cases. These patterns help with:

  • Strategic Planning: Understanding these patterns helps the DGT team formulate a roadmap for future development. It provides a guidepost for what is possible and allows strategic decisions to be made on what patterns to prioritize based on DGT's goals and the needs of its users.

  • Scalability and Growth: Identifying these patterns can help DGT plan for scalability and growth. Each pattern offers different benefits and can open up new opportunities for expanding DGT's user base, functionality, and market reach.

  • Promoting Ecosystem Diversity: With these patterns, DGT can foster a rich, diverse ecosystem. For instance, the use of Virtual Machines can encourage more developers to build on DGT by ensuring compatibility with popular smart contract languages, while Token Bridges and Atomic Swaps can facilitate a vibrant, multi-token economy.

  • Risk Mitigation: Understanding and planning for these patterns can also help DGT anticipate and mitigate potential risks. It can enable proactive measures to address security, privacy, and regulatory considerations associated with cross-chain operations.

  • Stakeholder Communication: Finally, by communicating these patterns, DGT can provide transparency to its stakeholders. It sends a message to users, developers, investors, and partners about DGT's vision for interoperability and its commitment to a future-proof, interconnected blockchain ecosystem.

Figure 51 The problem of Blockchain Interoperability
Figure 52 Some patterns to achieve DGT Interoperability