Dymension (DYM) enters the market with a creative solution to improve Dapp deployment called ‘RollApps.’ The platform focuses on connecting these applications in a secure and scalable manner. To make this maneuver possible, a proprietary architecture improves deployment times, liquidity, and security. As such, Dimension provides a new level of scalability and support for the growing layer 2 ecosystems emerging today.
What are RollApps?
RollApps are decentralized modular networks created to support fourth-generation dapps. These blockchains are easy to create and integrate into other systems. Additionally, these networks can be consensus-free by leveraging the Dymension network’s security. As such, RollApps streamline the creation of games, DeFi platforms, NFT projects, and next-gen dapps.
RollApps break dapp creation into two services, client and server. Client users leverage prebuilt tools that streamline inter-layer networking, block production, and message propagation. Reversely, the server-side operates as the application layer within the ecosystem and connects to the Dymension Hub.
What Problems Does Dymension (DYM) Attempt to Fix?
Dymension provides solutions for dapp developers across the board. The network improves security, liquidity, and interoperability through the use of a modular structure. This approach streamlines development by enabling creators to use prebuilt protocols for vital aspects of the network.
High Fees
High fees can mean the end of Dapps. Users are unlikely to use a clunky application that costs considerably more one day than the other. These scenarios played out with multiple dapps on the Ethereum blockchain during the 2017 congestion crisis. As such, economic sustainability has become a crucial element of developers’ strategies.
Dymension provides a reliable solution to the problem of high fees. Layer 2 protocols are much cheaper to operate with transactions costing percentages compared to mainnets. Consequently, there continues to be a drive to use these systems. Dymension capitalizes on this momentum with its unique systems and features.
Interoperability Issues
In the past, developers who used layer 2 solutions faced interoperability concerns. The first networks were exclusive to their native blockchains. In many instances, these networks improved performance but could not use traditional bridges to connect with nonassociated networks. Dymension introduces an Inter-Blockchain Communication (IBC) protocol to streamline this task.
RollApps enjoy full interoperability within the Dimension Hub from the start. This structure enables a diverse collection of dapps to benefit from each other’s offerings and liquidity. In turn, these actions drive innovation and usability in the dapp market.
Benefits of Dymension (DYM)
Dymension provides users several benefits, including the ability to create execution environments to fit your needs. For example, you can create a copy of another network with faster block times to see how your dapp will operate. Notably, you can develop using a custom-built framework or popular options like Wasm, EVMOS, and Polaris. This added flexibility improves onboarding and deployment as well.
High-Speed Execution
The use of optimistic rollups improves performance considerably and empowers more developers to use layer 2 solutions, reducing congestion on mainents. As such, Dymension Dapps enjoy scalability and lower costs.
Storage Options
Another benefit is the ability to select different data storage locations. This capability allows Dapps to scale vertically. It also reduces the need for direct blockchain storage when not needed. For example, you could select a data storage center to host certain portions of your dapp and a blockchain for more crucial elements.
How Does Dymension (DYM) Work?
Dymension functions as a decentralized DPoS (Delegated Proof-of-Stake) layer 1 blockchain. In this arrangement, nodes delegate their tokens to secure the network and earn rewards. One of the key ways that Dymension nodes secure rewards is by facilitating data exchanges between RollApps.
Impressively, Dymension is a full-stack web3 protocol that coordinates the RollApp ecosystem. The network’s modular structure includes a RollApp Development Kit (RDK) and the RollApp Virtual Machine (RVM) to improve security and deployment.
Dymension RDK (RollApp Development Kit)
The Dymension RDK is a great way to save time on your next layer 2 dapp. The toolset is comparable to the Cosmos SDK, with the main difference being it’s for Layer-2 solutions. Here, you gain access to a selection of pre-programmed components that most networks require. Simply select the options you need.
Dymension Hub
At the core of the network is the Dymension Hub. This Layer 1 component operates as a settlement layer and hub for Layer 2 RollApps. This architecture provides a secure location for all Layer 2 applications to communicate and share liquidity.
Automated Market Maker (AMM)
Another cool feature that Dymension introduces is its AMM. AMMs leverage smart contracts to connect traders. This approach lowers slippage for traders. It also provides a high level of privacy.
The Dymension AMM enables users to secure returns for providing services to the ecosystem. These options include providing price discovery and routing data feeds. Rewards are paid out in the network’s native utility token, DYM.
Token
To access the AMM and other features of the Dymension you need to use DYM tokens. This token can be delegated to validators to secure passive returns and secure the blockchain. DYM tokens provide transparency and traceability to the ecosystem. Additionally, the developers undertake token burns to reduce the supply of the token and increase demand.
Governance
Dymension integrates a community voting mechanism to ensure cohesion moving forward. This style of governance is common in fourth-generation platforms. It enables users to put forth proposals for a community vote. In this way, token holders control Dymension’s direction and future developments.
Bottom Line
Dymension provides a service to the crypto community that could help to drive innovation and development. Layer 2 networks are now a crucial component of the industry and Dymension supports their expansion. As such, it’s a project worth monitoring in the coming months.
