everLianGuaiy Real-time Payment Layer 2 based on Arweave and SCP

Increasing Efficiency everLianGuaiy's Real-time Payment Layer 2 built on Arweave and SCP

Author: wenchuan, PermaDAO

When we mention Layer2, we think of Ethereum’s Layer 2 solutions like OP, Arbitrum, and Base; when we mention Arweave, we think of storage projects like Filecoin and Storj; when we mention everLianGuaiy, we might just think it’s a payment protocol.

But what if we combine them together?

everLianGuaiy is a cross-chain token payment protocol developed by everVision, operating at millisecond-level and with 0 gas cost. The protocol is based on the Storage-based Consensus LianGuairadigm (SCP) derived from Arweave, enabling real-time transactions. The TPS of everLianGuaiy can theoretically scale infinitely, and it possesses characteristics like transparency, trustworthiness, efficiency, and speed. Batch processing of transactions allows millions of transactions for just $1. The protocol provides free transfers and has no admission requirements, meaning any developer or merchant can integrate everLianGuaiy protocol via API.

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With numerous terms stacked together, it’s natural to feel confused. So let’s break them down one by one.

Product and Business Status

As a cross-chain payment protocol, everLianGuaiy has achieved the following functionalities:

One-Click Coin Purchase

Through fiat currency, users can purchase USDC. This feature is supported by third-party Legend Trading and currently supports USD, EUR, AUD, GBP, CHF, JPY, and CAD. Legend Trading is a compliant financial institution in the United States, serving over 800 institutions in over 150 countries, with a monthly trading volume exceeding $1 billion. It also provides the underlying fiat currency channel for Alchemy LianGuaiy.

Image source: everLianGuaiy

Asset Cross-Chain

Support for depositing multiple-chain assets into everLianGuaiy, as well as withdrawal from everLianGuaiy. Currently, it supports Ethereum, Arweave, Moonbeam, Conflux, BSC, and PlatON, as well as 29 tokens. Most of the supported tokens are projects within the Arweave ecosystem.

Image source: everLianGuaiy

From the table below, sorted by market value, it can be seen that the main assets in everLianGuaiy are stablecoins, AR, and ETH.

Currently, the total locked amount on various chains exceeds 1.1 million USD, with the main locked amount coming from Arweave and Ethereum.

Image source: everScan

Image source: everScan

Image source: everScan

Wallet

Real-time payment, millisecond-level transaction speed, and 0 gas fees. Providing an on-chain transaction experience similar to traditional payment products like Alipay is the key feature of everLianGuaiy.

The number of current transactions in everLianGuaiy has surpassed the 20 million mark, which is only a month and a half after breaking 10 million. This indicates the potential that everLianGuaiy holds.

Image source: everScan

everLianGuaiy currently has over 16,000 users, with three types of accounts: ETH address, AR address, and Email address (implemented by EverID). Among them, ETH addresses account for 89% and are the main source of users.

Image source: everScan

Swap

Supports simple token swapping, supported by Permaswap. Permaswap is a non-chain DEX, like everLianGuaiy, both are products of everVision.

NFT Auction

Mainly cooperating with projects in the Arweave ecosystem. Auction proceeds will be distributed to users, artists, and everLianGuaiy NFT holders. EverLianGuaiy NFT holders can participate in Permaswap mining.

EverID

EverID is the latest product launched by everLianGuaiy, which is a digital asset identity account system in the network. It allows users to quickly create everLianGuaiy asset accounts through various methods such as Crypto wallet addresses and email addresses, aiming to reduce the barrier for users to enter Web3, so they no longer have to manage keys. It is currently in the testing phase.

Protocol Architecture

The everLianGuaiy protocol mainly revolves around cross-chain asset deposit, extraction, and adopts the asset lock-up + mint/burn model. In its business logic, they correspond to Mint, Transfer, Burn respectively. The validation of cross-chain transactions is coordinated by three roles in the protocol: Coordinators, Detectors, and Watchmen.

• Coordinators: Responsible for transaction verification and on-chain submission.

• Detectors: Automatically download and verify on-chain data, generate global states and balances.

• Watchmen: Multi-signatory governance members, generate proposals and sign them. Proposals can only be executed after obtaining the signatures of the majority (>51%) of the Watchmen.

We can understand the cross-chain process of everLianGuaiy through the Mint and Burn processes:

Mint

To make payments using everLianGuaiy, the original chain assets need to be deposited into the everLianGuaiy protocol. When an Ethereum user wants to deposit ETH into everLianGuaiy, they need to send ETH to the locking address of everLianGuaiy on the Ethereum network. Then, the coordinator will verify if the user has sent ETH, whether the Ethereum network has confirmed the transaction, and if the ETH is in the locking address. Once confirmed, the coordinator will record the transaction in everLianGuaiy and submit it to the Arweave network. After completion, an equivalent value of ETH will appear in the user’s everLianGuaiy account, completing the asset minting process.

Burn

Users who want to transfer their assets from everLianGuaiy back to Ethereum, that is, withdraw. Users need to first confirm that they have enough ETH in everLianGuaiy. The withdrawal transaction needs to be batched and submitted to the Arweave network. After the guardians detect the withdrawal transaction, they will independently verify the transaction and generate a proposal. The guardian who verifies the transaction submits the proposal and waits for other guardians to sign the transaction. When the proposal is signed by more than 51% of the guardians, the lock-up contract on Ethereum will execute the withdrawal transaction and transfer the assets to the user’s Ethereum address, while burning the assets in the everLianGuaiy.

In the two processes mentioned above, we see the roles of coordinators and guardians. What about the detectors? In reality, anyone can become a detector by downloading the off-chain smart contract of everLianGuaiy. The detector can obtain the final state of everLianGuaiy, which is sourced from the Arweave network and is tamper-proof and traceable.

Safety Assumptions

everLianGuaiy is essentially a cross-chain payment protocol, and the most critical issue for cross-chain products/protocols is security. Once attacked, user assets can be easily lost, so cross-chain is a race with a high ceiling and a low floor.

How does everLianGuaiy ensure security?

The security assumption for asset cross-chain is usually 51% attack and honest nodes, which means most validators in the protocol are honest verification nodes. If a malicious attacker wants to launch an attack, they would need to “bribe” at least 51% of the validators to pass the consensus voting. In the above-mentioned Burn process, we can see that the final multisig of everLianGuaiy also requires at least 51% of the guardians’ signatures. It is important to note that there are multisig risks in managing assets through multisig, which is also the biggest disadvantage of most cross-chain projects.

However, for everLianGuaiy, it has unique advantages at the consensus level.

The consensus in everLianGuaiy is guaranteed by the storage-based consensus paradigm (SCP). SCP is a new blockchain application development paradigm proposed by outprog, the founder of everVision. Its idea comes from Arweave’s SmartWeave and Ethereum’s Rollup. The core idea is that as long as the storage is immutable and the transactions on it are traceable, the same result will be obtained no matter where the application is computed. This means that consensus acquisition does not necessarily have to be through distributed computing.

Source: Slides from outprog’s speech at Arweave Day in Asia 2023

SCP separates computation from storage. The blockchain is only responsible for data storage, and computation is performed by off-chain clients/servers, and the generated state is also saved by off-chain clients/servers. Ethereum compares itself to a “world computer,” and in the SCP paradigm, storage implemented using Arweave is similar to a “world hard drive.” All original transaction data is stored in the Arweave network, with the characteristics of immutability and traceability. Based on Arweave and SCP, anyone can download the data from everLianGuaiy and verify it. In other words, the three roles in everLianGuaiy, coordinators, detectors, and guardians, all run the same verification component and can load blockchain data to check transaction states. If the states saved by coordinators and detectors conflict, it indicates fraud by one party. The permanence of the original data ensures consensus verification. Moreover, SCP uses off-chain smart contracts without language restrictions, reducing developers’ learning costs.

Offline computing is easily compared to Ethereum’s Rollup, which is why everLianGuaiy based on SCP can be considered as Arweave’s Layer 2.

By modularizing the blockchain into data availability layer, consensus layer, settlement layer, and execution layer, we can see more clearly what Arweave and SCP have achieved. Compared to Celestia and other sovereign Rollups that are being developed or planned, Arweave and SCP have already taken the lead, allowing developers to immediately start developing dapps using Arweave and SCP.

everLianGuaiy + EverID = ?

Web3 has been waiting for mass adoption, and mass adoption involves billions of Web2 users who are not familiar with the underlying logic of public keys, private keys, mnemonic phrases, and other blockchain concepts like native Web3 users. For them, what is needed is simple login and simple operations. But even the first step to enter Web3, wallet registration, can block off most users. That’s where Account Abstraction (AA) comes in – abandoning Externally Owned Accounts (EOA) and using smart contract accounts for on-chain operations. However, the underlying logic is still the same: smart contract accounts map to a blockchain address. In comparison, EverID offers a different approach to lowering user login barriers.

EverID adopts the mature FIDO2 protocol already used in Web2. Its account system can be integrated with various applications and services, and user identity can be verified through biometric technologies like fingerprint or face recognition, or physical security keys. Simply put, each user device (phone, computer) has a unique chip. The protocol interacts with this chip, enabling it to generate a key pair where the public key can be collected by the protocol, while the private key can only be held/know by the device. Every time a user logs in, the device “signs” with the private key to confirm that the login via email/phone number is from the correct device. This way, users can register accounts using email or phone number without any passwords, making login effortless.

In the field of encrypted payments, the focus is currently on deposits/withdrawals and fiat currency purchases. As a protocol that focuses on real-time payments, I believe everLianGuaiy should target cross-border payments, which is where encrypted payments have the greatest advantage. By eliminating bank settlement processes, cross-border transfer efficiency is greatly improved.

Currently, PermaDAO has already implemented member contribution incentives through everLianGuaiy, where members from around the world can receive AR tokens in real-time. Along this path, everLianGuaiy may explore more DAO payments and become a payment tool for DAOs. And with the combination of EverID, it may form an on-chain credit system, accumulating a high-quality Web3 user community based on DAO contribution records and user asset situations, and then integrate with DeFi projects…

In the previous cycle, users complained about various chain’s performance, such as being prone to crashes, having insufficient TPS, and slow transactions. However, in this current cycle, there has been a significant improvement in infrastructure, but there aren’t enough applications to onboard users. Mass adoption is the industry’s expectation for Web3, as without users, it’s all just empty talk. Once we have high-quality infrastructure like real-time payment everLianGuaiy and easy login EverID, all we need is for the applications to explode, bringing a new landscape. So let’s wait patiently for the winds of change.

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