Partisia Blockchain: Building for the future of Web3 (Part 3)
This is part 3 of a three-part series where we review the three key technology innovations of Partisia Blockchain and compare them with other blockchain technologies. You can read our intro and the performance comparison between various other chains here, or read more about the privacy layer comparison here.
Part 3 reviews the various web3 infrastructure aiming to address the issue around interoperability between different chains, the techniques used as well as pros and cons of various technologies.
Partisia Blockchain
Partisia Blockchain is deeply committed to interoperability, aiming to foster trust and collaboration across diverse blockchain networks. Its unique architecture addresses the challenges of cross-chain interactions through a multi-faceted approach, including its innovative “Bring Your Own Coin” (BYOC) concept and advanced bridging solutions.
BYOC allows users to pay gas fees in various liquid coins like Ethereum, BNB, MATIC, USDC, and USDT, rather than requiring a native token. This flexibility enhances convenience and accessibility, eliminating the need for users to acquire a specific token for network interaction. Moreover, BYOC enables developers to open their decentralized applications (dApps) to a wider audience, as users can transact with their preferred cryptocurrency. The stable fee structure, pegged to USD, ensures predictability for projects and users alike, regardless of underlying asset price fluctuations.
Partisia Blockchain’s token bridge is another core innovation. It employs a combined approach of double bookkeeping, staking as collateral, and large-scale MPC-based selection of oracle nodes to form a secure and efficient bridge. This design ensures a 1:1 correspondence between tokens across chains, enhancing security and trust in cross-chain transactions. The token bridge also incorporates a mechanism of frequently expiring epochs and MPC tokens as collateral staking, limiting the accumulation of financial risk.
For securing digital assets, Partisia Blockchain offers MOCCA, a decentralized and fully programmable custody solution. This enables institutions, DAOs, exchanges, and wallet providers to collaborate trustlessly to secure the assets of their users. MOCCA’s smart contracts provide flexibility in defining access controls, voting powers, NFT permissions, and transaction rules, catering to diverse custody requirements.
Partisia Blockchain’s versatility also allows it to function as a second layer for other blockchains. By deploying a zero-knowledge smart contract on Partisia alongside a public contract on the Layer 1 chain, dApps can leverage Partisia’s privacy-preserving capabilities without migrating their entire infrastructure. This approach enables seamless integration of privacy features into existing applications, promoting wider adoption of privacy-preserving technologies.
LayerZero
LayerZero is a messaging protocol designed to facilitate seamless communication and data exchange between blockchains, fostering an “omnichain” vision where all chains are interoperable. This is achieved through a Mesh Network architecture that overcomes the limitations of existing cross-chain solutions.
The innovation lies in facilitating communication between blockchains without the need for costly on-chain nodes or insecure middle chains. This is achieved through a combination of Ultra-Light Nodes (ULNs), blockchain endpoints, decentralized third-party oracles, and relayers. Oracles, such as Chainlink and Band Protocol, fetch transaction data from the block header, while independent relayers verify the transaction proof. This dual verification process ensures the security and validity of the message.
Functioning as a messaging layer, LayerZero enables communication between different blockchains and their smart contracts. The Omnichain Fungible Token (OFT) contract standard enables seamless cross-chain token transfers without asset wrapping or intermediate chains. However, this functionality is tied to the LayerZero ecosystem, which limits the potential reach and interoperability of tokens.
Each application built on LayerZero can configure a security stack consisting of several required and optional decentralized verifier networks (DVNs) to verify its messages. These DVNs can leverage various validation methods, including zk-technology, middlechains, and consortium signers. Additionally, Rate Limiter allows controlling the number of cross-chain messages within a specific time frame, preventing denial-of-service (DoS) attacks and ensuring regulatory compliance. However, this is at a cost of performance.
This flexible approach to security empowers applications built on LayerZero to tailor their verification mechanisms to their specific needs and risk profiles. By not prescribing a single method, LayerZero allows for a diverse range of security configurations across the ecosystem.
Cosmos
Cosmos is designed to be the “Internet of Blockchains,” addressing the limitations of isolated blockchain networks. It achieves interoperability and scalability through a combination of innovative technologies and a modular architecture.
Instead of a single monolithic blockchain, Cosmos allows for the creation of multiple independent blockchains, each with its own specific use case and consensus mechanism. Developers can leverage pre-built modules for common blockchain functionalities, reducing development time and complexity.
- Cosmos SDK which facilitates efficient appchain development.
- Tendermint Consensus mechanism that offers seamless integration of instant finality.
- Inter-Blockchain Communication Protocol (IBC) that is used to build a wide range of cross-chain applications including token transfers, atomic swaps, multi-chain smart contracts (with or without mutually comprehensible VMs), cross-chain account control, and data and code sharding of various kinds.
- CosmWasm, a platform for creating, testing, and executing Smart Contracts.
- Peg Zones proxy chains, interoperability protocol between Tendermint blockchains and PoW systems.
The Cosmos Hub serves as the nexus for the entire Cosmos ecosystem. It acts as the intermediary connecting various blockchains within the network. Instead of each blockchain directly linking to every other chain, they all plug into the Cosmos Hub. This hub keeps track of interactions and facilitates communication among different zones (blockchains) in a secure and efficient manner.
Cosmos ensures security through a decentralized validator model. Each chain has its own set of validators responsible for verifying transactions and securing the network. This decentralized approach eliminates single points of failure and enhances the overall security of the ecosystem.
Replicated Security is a feature that allows the Cosmos Hub to provide its strong security to other blockchains, known as “consumer chains” through the IBC protocol. This enables consumer chains to benefit from the Cosmos Hub’s security without needing to maintain their own validator sets.
Interchain Accounts (ICA) represent a significant advancement in cross-chain interoperability, making the Cosmos ecosystem more interconnected and user-friendly. With ICA, applications can directly access and utilize functionalities of applications on other chains and users are able to perform actions like token transfers, swaps, staking, and governance participation from a single account. The benefits of ICA extend to various use cases, including cross-chain liquidity provision, lending, borrowing, and NFT transfers. It enhances governance by allowing voting on proposals across multiple chains without switching accounts.
In addition to IBC, Cosmos supports bridge protocols like Gravity Bridge and Wormhole Gateway. These bridges connect the Cosmos ecosystem with other blockchain networks like Ethereum and Solana, further expanding interoperability and enabling asset transfers and cross-chain communication between diverse ecosystems.
Conclusion
The comparative analysis of various blockchain technologies reveals a spectrum of approaches to privacy, scalability, and interoperability.
Partisia Blockchain’s focus on privacy is not only a technological advancement, but also a philosophical shift towards a more user-centric and privacy-conscious approach to blockchain technology. By seamlessly integrating cutting-edge cryptographic techniques, such as multi-party computation (MPC) and zero-knowledge proofs (ZKPs), with a high-performance blockchain architecture, it presents a unique paradigm that transcends the limitations of traditional blockchain models. This fusion of privacy and performance empowers the development of decentralized applications and smart contracts capable of securely processing sensitive data while maintaining scalability and interoperability across diverse networks.
As the demand for privacy-centric applications continues to grow, Partisia Blockchain’s innovative solutions will be instrumental in driving the next wave of decentralized innovation. Its ability to address the inherent challenges of blockchain technology while maintaining efficiency and interoperability positions it as a compelling platform for building the next generation of decentralized applications.