Understand the four core modules of the IRISnet economic model and re-understand the development path and potential value of IRISnet

When it comes to cross-chain projects, you usually think of two systems, Polkadot and Cosmos. In fact, even in the Cosmos system, there are undiscovered jade. IRISnet in the Cosmos cross-chain system is a project worthy of attention. IRISnet's main network IRIS Hub is the first Hub in the Cosmos ecosystem, which was earlier than the "Cosmos Hub" developed by the Tendermint team. In the vast Cosmos ecosystem, "IRIS Hub" and "Cosmos Hub" exist in parallel and each has its own unique features.

IRISnet not only supports data and complex computing cross-chain operations, but also lays out the Asian market and ecological expansion. IRISnet has completed the minimum feasibility verification of customer projects through iService and can enable support for DeFi applications. With the booming blockchain ecosystem, the outbreak of the data economy and the mature development of IBC, there will be more imagination in the distributed business brought about by the cross-chain in the future.
Written by: Mr. Zhang

In 2019, it has been regarded as the first year of cross-chain, and many cross-chain projects are on the same line this year. It is hoped that the problem of islands without interoperability between independent public chains will be solved.

With the recent release of Libra, Facebook will bring more than 2 billion users into the blockchain field in the form of a coalition chain, which indicates that in the future, the interoperability of blockchain is not limited to the public chain. It will also involve the relationship between the public chain and the alliance chain. It should be noted that the alliance chain is of great practical significance to the traditional business world and the government public sector, and the information island problem is as serious. Because of the trust issue, the two hostile commercial companies cannot put the data together. Two different government departments or companies do not necessarily communicate with each other according to the regulations. The blockchain, which is described by the Economist magazine as a technology that trusts machines, is opening up a door to the data world.

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When it comes to cross-chain projects, you usually think of two systems, Polkadot and Cosmos. In fact, even in the Cosmos system, there are undiscovered jade. IRISnet in the Cosmos cross-chain system is a project worthy of attention.

First of all, IRISnet, like the Cosmos project, is a "Hub" built in accordance with the Cosmos SDK, the cross-chain center in the Cosmos system. It not only has the same functions as the Cosmos Hub, but also has many unique features.

This is a relationship that has been misunderstood by many people. Many people understand IRISnet that this is "the son of Cosmos" and "a project of the Cosmos project." But in fact, IRISnet's main network IRIS Hub is the first Hub in the Cosmos ecosystem, which was earlier than the "Cosmos Hub" developed by the Tendermint team. In the vast Cosmos ecosystem, "IRIS Hub" and "Cosmos Hub" exist in parallel and each has its own unique features.

IRISnet is a secure, efficient and flexible decentralized infrastructure chain that not only supports asset cross-chain, but also supports innovative computing and services that can be used across heterogeneous networks. This "Cosmos/Tendermint + SOA" service-oriented design is a higher-level architecture for application-level functional modules, which can better cooperate with the application chain and support them to focus on the operation of complex application scenarios, saving the foundation. Construction cost of the facility.

From the perspective of technology development, there are many key parts of the Cosmos SDK developed by the various chains in the Cosmos ecosystem, which are jointly developed by the Tendermint team and the IRISnet team. If you look through the white paper and related materials carefully, IRISnet has received an investment from the Cosmos parent foundation Interchain Foundation. In the official website of Cosmos, IRISnet is the only project introduced with Cosmos Hub and Tendermint.

If you read the white papers for each cross-chain project carefully, you will find that different cross-chain projects have their own expertise. Cosmos is committed to solving asset cross-chain issues, and Polkadot, as a rising star, is committed to creating larger frameworks, not just asset cross-chains, but also data and smart contract cross-chains. IRISnet not only has the cross-chain capability of Cosmos assets, but its own team's past experience has been focused on providing distributed business services. The iService developed by it involves data and complex computing cross-chain interoperability services.

IRISnet not only supports data and complex computing cross-chain operations, but also lays out the Asian market and ecological expansion.

Four core modules of the IRISnet economic model

A good project is not only a top-notch team, but also a high-executive team. If the economic design of the certificate can capture more value, it can be called a good business model. Too many blockchain projects don't think about what their business model is, and why they need to issue a pass, which can't capture the value of the project. I hope that through this article, I will briefly describe the four modules of IRISnet's economics. I will explain the characteristics of IRISnet in the economic model according to the important sequence and examples, and help the Chinese blockchain community better understand the characteristics of the project. ,.

To better understand the economic model of IRISnet, let's start with this picture:

The four modules of the IRISnet pass can be divided into three levels: the BPoS module of the consensus layer, the chain parameter management upgrade module of the governance layer, and the DeFi support module and the iService service module of the application layer. These are worthy of careful study:

The BPoS consensus algorithm belongs to the branch of the PoS consensus. The main function of the pass in the PoS consensus is to maintain network security through Staking. The more the pass is involved in Staking, the network is economically secure, and these are Staking. The pass will be locked out and not circulated outside, achieving the effect of a deposit.

IRISnet's governance layer can support multiple forms of governance: text proposals, automatic chain parameter modification, software upgrades, network termination proposals, and Tax revenue distribution proposals. The governance process for these proposals consumes a certain IRIS pass to ensure that the proposal is not abused, and only the users or nodes participating in the mortgage can vote on the proposal.

The application layer's iService service is a building block for developing distributed commercial applications. It is also a "super adapter" that can be used to connect the service providers and demanders on the chain and under the chain. In the design of the economic model, each service provider needs to pledge several times the service value of the certificate to provide credit guarantee when issuing its own services.

Another module in the application layer is the fiery DeFi open finance. The underlying architecture of IRISnet is the proven Tendermint algorithm and BPoS consensus, plus the independently developed Multi-asset module, which supports IRIS for supporting various stable currencies, asset certification and decentralized transactions. The ability to post or link on the Hub. For each multi-asset release, you need to pledge a certain amount of IRIS pass or consume IRIS pass. In addition, DeFi scenarios use IRIS as a consumption pass as long as they are cross-chained through the IRIS Hub.

As can be seen from the above four modules, IRIS is widely used. With the future interoperability, data integration and chain integration and chain implementation, IRISnet may become a media platform for a considerable market in the future. The network effect of the platform will be enhanced as the number of service providers and demanders increases.

In the communication with the IRISnet team, the main direction of the IRISnet team's strategy is to help the service provider achieve the application. The IRISnet team said that because only the first to let everyone see in the distributed business, the service provider can land, and the demand side can easily use iService simple logic to invoke the service, the strong demand for IRIS pass will be formed. Coupled with the BPoS consensus to participate in Staking to maintain network security requires a large number of IRIS, so that in the future IRIS certificate will become increasingly scarce.

After understanding the core modules in the IRISnet-pass economy model, I hope that the reader will understand the role of these modules through a more detailed analysis below.

One of the IRISnet pass economic scenarios: BPoS, the pass settlement scene

The BPoS (Bonded PoS) consensus stems from the Silicon Valley Tendermint team. Tendermint provides a high-performance, consistent, and secure BFT (Byzantine Fault Tolerance) consensus engine for extending heterogeneous blockchains, including public chains, and performance-focused licensing chains/federated chains. IRISnet built a cross-chain system based on Tendermint.

In the BPoS consensus, the holder of the certificate entrusts the token to the node in the network to pledge and participate in network verification. In "Bonded PoS", "Bonded" means the binding of rights through pledge. If we apply the recent hot Staking economy, the action of entrusting Token to the node to pledge to participate in the network is called Staking.

Each node ranks according to its own voting weight (that is, the total amount of IRIS certificate that itself accepts the pledge of the holder), and can participate in the block verification to obtain the block reward; the general holder of the certificate can be shared as a principal. One of the innovations that Bonded PoS brings is that by allowing each holder to pledge the license to participate in the network consensus, each holder needs to be more cautious in selecting nodes, once the node is evil or improperly made. Behavior, the system will punish it and confiscate some of the pledges. It should be noted that it is 21 days to restore liquidity after the user pledges IRIS to unlock it.

In general, the PoS consensus project party will hope to participate in Staking at least 50%. If you look closely at IRISnet's Staking data, it is only about 26%, mainly because there are still a lot of foundations and teams. Not involved in Staking (currently only 347 million in circulation, the total is 2 billion), the proportion of Staking separately calculated by retail investors is actually quite high (with 160 million participation).

The IRISnet team version of BPoS is not the same as the Cosmos team version. After careful consideration, the IRISnet team decided to simplify the inflation calculation logic, from the dynamic calculation of the inflation logic according to the Staking Ratio to the 4% additional logic based on the initial total. As the total volume continues to rise, the inflation rate of the entire system will gradually decline. The benefit of the IRISnet version is that the fixed inflation logic can be more intuitive for the holders, while greatly improving the computational efficiency of each block. (In the future, if the project wants to have a model that is more efficient and intuitive, it can also be developed directly using the IRISnet version of the SDK)

Staking, as mentioned above, is essentially to provide network security. The more secure the underlying network can support the next two application scenarios. Currently, according to the data of the IRIS browser, more than 100 nodes have participated in the network consensus (but only in the previous period) The nodes with the top 100 voting weights can represent the block, which is gradually open at a rate of 13% per year.

IRISnet's second economic scenario: iService, a future distributed business application scenario

If I choose one of IRISnet's most prominent and innovative elements, then I will choose "iService" as the representative.

iService can be simply interpreted as a "super service adapter." If it is more popular, it can be understood as a Jingdong Mall. On this platform, there are both demanders of services providers and services. The two parties intelligently combine and link each other through iService.

Since the service provider and the demand side have different underlying architectures, complex technical communication costs and human communication costs will be generated in the commercial docking, which will be the solution pain of iService.

McKinsey, a world-renowned consultancy, once wrote an article on "How Blockchain Improves Public Sector Data Management," and depicts future data services and distributed business scenarios. I borrowed a picture from the article and made corresponding changes based on the actual situation of iService to describe the real application scenario of iService.

Image source: mckinsey

One scenario can be envisaged: individuals interact with hospitals or insurance agencies through iService. In the future, everyone can store private data in the blockchain and encrypt it with their own public and private key pairs. Individuals can easily select different services through the iService platform and authorize hospitals or insurance institutions to read them. Take and write data that exists on the blockchain or under the chain.

As a platform, when an individual's request is connected to the service provider's service, the organization can obtain the right to use the personal data, and through the user's inspection report, try to calculate the most appropriate premium, and finally return the user result.

In addition, iService can also accommodate data service calls between organizations and organizations. Of course, not just data, with IRISnet cross-chain services, applications can implement complex storage and privacy technologies without having to do it themselves. Data can be stored on blockchains that focus on distributed storage, such as IPFS, and then cross Chain service, which performs proxy re-encryption with a blockchain that provides privacy calculations.

Such a health care data exchange network can focus on its own business processes, quickly build, and make full use of the capabilities of other networks. End users through iService do not need to know that the underlying support is calculated from other networks.

We will use a brief introduction provided by IRISnet to understand the operation principle of "iService" more clearly.

As you can see from this picture, in addition to the Cosmos SDK module, the IRIS SDK (development kit) includes multiple interfaces in its iService infrastructure, allowing service providers to quickly tie through service definitions and services. Binding access, while the service requester can also understand the capabilities and interfaces of the service through the Query interface, and then use the service by calling the invocation interface.

IRISnet, created by the IRIS SDK, is a cross-chain hub, also known as "IRIS Hub," which focuses on supporting cross-chain service requests and can be seen as an open market for cross-chain services.

Through iService, service providers can easily access resources in the chain (including heterogeneous public blockchains and alliance chains), as well as access to computing power provided by various cloud services and enterprise applications.

How does IRIS pass on the iService platform?

If a project feels that its technical service is not bad, it also has application value in the market. If you want to share data and services to realize it, you can publish its service and pricing on the IRIS Hub according to the iService standard. In this process, IRIS passes that cost several times the cost of the pledge service itself. In this way, the demand side can retrieve and call the service on this platform. After the service is successfully completed, the settlement of the fee is completed, and the supply and demand are balanced.

Best of all, if a project is developed directly from the IRIS SDK based on iService, its business services can be deployed on its own network, flexibly setting whether its service scope is "local" or "called by other chains." If the service can be called across the chain, its corresponding service definition and binding information will be automatically synchronized to the IRIS Hub through the IBC protocol, which is seen by other application chains that access the IRIS Hub.

Applications that access the IRIS Hub can easily query the services they can see. When the service is not in the chain, the IRIS Hub will support the service request and complete the inter-chain calls correctly and transparently. Although the service provider can request payment with other assets (such as stable currency, IRIS Hub will have stable currency in the third quarter), but the release of the service requires the completion of the IRIS certificate.

In addition, IRIS Pass can also use the arbitration scene in which the service calls disputes. Just like when we have a dispute with the seller in Jingdong Mall, the platform will assist in processing. In the decentralized world, it may be a node or a mortgage. A professional arbitrator of the IRIS Pass, assisting the arbitration process and obtaining certain compensation.

Imagine the world of the future, the data is gold, everything can be calculated, data cross-chain, computing cross-chain, cross-chain services will accelerate the development of distributed applications.

Through communication with the IRISnet team, we learned that iService is exploring some landing scenarios:

The IRISnet core development team is working with Fosun Health Cloud to create a prototype system that uses IRISnet to allow some of the future hospital data to be free, secure, and motivating in the chain, allowing insurance companies and other organizations to make reference to medical data. Decision making makes big data more business value.
The IRISnet project works with PlatON, a public-chain project that provides privacy computing, to make private computing easy to use for other application chains through cross-chain services.
The IRISnet core development team will deploy some of the basic services required for DeFi applications in the third quarter, such as market information data query services, random number generation services, and so on.
IRISnet's third economic scenario: Decentralized Finance (DeFi)
According to the IRISnet team, DeFi (Decentralized Finance) or Open Finance (Open Finance) is also a scenario that IRISnet will support.

Attempts in the DeFi field are now hailed as one of the fastest and most valuable scenarios in the blockchain. The field has emerged from Ethereum, and many public chains want to divide the cake. What role does IRISnet plan to play? ?

According to Harriet, founder of IRISnet, IRISnet is a high-performance, decentralized and evolving network that supports secure network evolution through chain management, making it ideal for supporting DeFi applications. After the upcoming network upgrade in July, IRISnet will support the distribution of assets including native assets, gateway assets and IBC (cross-chain communication protocol).

Harriet said that with these foundations, many interesting DeFi applications, including stable currency, asset tokenization, lending, and wealth management, can be implemented. The ecological partners already listed on the IRISnet website include GDEX and Axonomy are also developing functions based on IRISnet.

A simple example is that DeFi applications require exchange rates between certificates to support scenarios such as financial management and lending. IRISnet's iService makes it easy to publish market information (such as a centralized system like Coinmarketcap) as a data service. On the IRIS Hub, the DeFi application can be called directly without having to pick up the data information for each application.

iService can also provide a privacy-protected credit query interface based on e-commerce information, making DeFi services with KYC unsecured loans possible.

According to the IRISnet team, iService is very flexible and does not rely on IBC (cross-chain communication protocol). Even when the IBC has not been developed, the service can be directly bound to the IRIS Hub and adapted through the service provider of iService. The trusted interaction between the chain and the chain is verified by the IRIS Hub. The logic of the specific service business is running on the chain or centralized system of the service provider connection, and does not bring too much computing burden to the IRIS Hub. .

In these DeFi applications, an IRIS pass must be collateralized or consumed when the asset is issued, and the fee for the exchange of assets in the middle can also be IRIS. In the future, as long as IRISnet establishes a stable and secure underlying network and empowers more iService and DeFi cases, it will attract more people to participate in the IRISnet cross-chain network.

The economic prospects of the IRISnet network are worth looking forward to

Of course, the development of blockchain technology is still early, and the ecological development of many public chains is still under exploration. Under such circumstances, many people think that cross-chain is still early. However, compared to other cross-chain ecosystems, IRISnet has completed the minimum feasibility verification of customer projects through iService and can enable support for DeFi applications. With the booming blockchain ecosystem, the outbreak of the data economy and the mature development of IBC, there will be more imagination in the distributed business brought about by the cross-chain in the future.

In addition, the integration of IRISnet's solid team background and a number of well-coordinated capital resources make the team have great potential for future market development. As more iService and DeFi scenarios become available, you can observe the development of IRISnet's cross-chain ecosystem and the possibility of creating long-term value in this development process.

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