Scalability has long been a major pain point in the crypto space. High gas fees and slow transactions plague popular blockchains under increased demand.
Some platforms aim to tackle scalability issues within the blockchain space, and GTON Capital aims to do so through rollup solutions and a stablecoin protocol. So let's look at GTON Capital and how the platform works.
What is GTON?
GTON Capital is a decentralized autonomous organization (DAO) and web3 ecosystem that includes a stablecoin protocol and Ethereum rollup solution. The platform aims to improve the adoption of decentralized apps (dapps) and cryptocurrencies by improving scalability in the crypto sector.
Part of the platform's solutions includes a Layer 2 rollup for Ethereum and a vault where users can store their assets and earn a return on their holdings. In addition, the Layer 2 platform will use the platform's native stablecoin as its currency to power its network.
In addition to that, the platform intends to contribute to the growth of the Web3 ecosystem by making its tools accessible to developers. Their stablecoin seeks to be used by organizations as a cryptocurrency that is not subject to price fluctuations for usage inside the ecosystem of cryptocurrencies.
Because of the innovations that it introduces to the market, billions of people may be able to participate in a decentralized global economy. Due to this, there is a whole new global area where individuals will be able to connect and exchange value.
How does it work?
The ecosystem comprises three main components. The first is the Ethereum rollup platform, which is governed by the community. Next is the stablecoin protocol that powers the rollup network and the treasury protocol to provide liquidity for exchanges and help grow the network.
Ethereum Optimistic Rollup
The ecosystem includes an Ethereum Optimistic Rollup that is known as the GTON Network. In addition, many people are familiar with Zero Knowledge-Rollups (ZK-Rollups) that work by taking transactions off of the Ethereum network and rolling them into a single transaction before submitting a validity proof back to the main chain.
However, Optimistic rollups are different because they function as L2 protocols that improve the throughput of the Ethereum network. Like ZK-Rollups, Optimistic Rollups take transactions off the main chain, but they can run smart contracts, while ZK-Rollups cannot. In addition, the platform is Ethereum Virtual Machine compatible, making it possible to run Ethereum smart contracts and dapps on the GTON Network as protocols built on other EVM networks.
The rollup platform works on top of Ethereum, helping to scale transactions and reduce the strain of the main Layer 1 platform. The rollup can also be deployed to scale dapps and run as a Layer 3 or Layer 4 network to support additional blockchain networks.
GTON Dollar (GDC Stablecoin)
The GTON Dollar (GDC) is a stablecoin that functions as the native cryptocurrency for the Ethereum Layer 2 rollup solution. While cash reserves and bonds back stablecoins like USDC and USDT, GDC is an algorithmic stablecoin.
The stablecoin is collateralized via algorithms and smart contracts to help it maintain a peg close to the value of one dollar. Bitcoin, Ethereum, and other cryptocurrencies are also used as collateral for the GTON Dollar. In addition, GTON Dollar is used to pay for "gas" fees. The stablecoin can also be staked to secure the network, and users can earn additional tokens through the PoS protocol.
Conclusion
GTON Capital is a DAO and ecosystem of protocols for the scalability of the web3 space via Layer 2 optimistic rollups and a collateralized stablecoin.