What problem is YGGDRASH trying to solve?
Referring to itself as Blockchain 3.0, YGGDRASH dreams of a world where every product and service is connected. It is a trust-based multi-dimensional blockchain ecosystem where each branch is governed by reputation to ensure integrity. It was built with a vision to “digitize everything into reality” and to connect everything and any blockchain networks.
Users will also be able to develop their own blockchain networks and branch chains using their branch chain starter kit.
The YGGDRASH ecosystem is coming out with decentralized exchange, allowing investors to use a fast and secure crypto exchange without moving funds to a third party platform. In turn, this will prevent hacks such as the ones that happened recently.
Why is it called YGGDRASH?
YGGDRASH is a combination of the two words, Yggdrasil and hash. Yggdrasil is a massive mythical tree that dates back to the 13th century. This tree was considered holy as it connects wells of the world from the underground to the heaven. Hash stands for hashed values used in blockchain transactions and networks.
Essentially, YGGDRASH is a channel that aims to connect all blockchains using a trust-based multi-dimensional blockchain.
The YGGDRASH Ecosystem
YEED — The Main Currency of the Ecosystem
YEED is the main currency of the ecosystem, and one of the tools used to maintain the network, also working as a means of transaction.Biggest reason of its existence is to connect and maintain the blockchain networks on the YGGDRASH ecosystem.
Whenever a new blockchain is created it is not automatically registered to the stem chain. YEED tokens are used to connect the blockchain to the main network and YEED will be gradually consumed over time to maintain the network.
“Stem Chains” and “Branch Chains”
The Stem Chain acts as the main root of the blockchain, aggregating and interacting with all Branch Chains that are connected. Branch Chains can be an independent blockchain or a dApp, with the ability to have its own governance system. The whitepaper notes that a Branch Chain should not be compared with Side Chains, as they are fundamentally different.
Sacred Water — Reputation Score Evaluation Chain
YGGDRASH has a reputation score evaluation chain called sacred water, which incentivizes users to perform beneficial activities & contribute on the network while limiting malicious users.
The higher your reputation score the greater the benefits you can get, one of them being a lower fee. With a high enough reputation score, you won’t have to pay any fees when using the network. This system is similar to how people with high credit score don’t having to pay fees when using certain services of a bank.
In order to earn a higher reputation score in the YGGDRASH ecosystem, users need to contribute and invest time on the network.
Sacred Water Fountain — Reputation Score Creation Chain
Working in conjunction with Sacred Water, the Sacred Water Fountain is the name of the ecosystem’s reputation score creation chain. It is essentially an algorithm designed to increase the score of users whose beneficial activities are detected in the ecosystem.
In addition to this, YGGDRASH will run a system to monitor and punish users who intend to obtain a reputation score maliciously.
Benefits YGGDRASH has over its Competition
“Zero” Network Fee — Reputation Scoring System
Yggdrash adjusts the current fee structure of blockchain by applying reputation. YEED is a crypto-currency and plays as one of criteria to evaluate reputation.
The consensus algorithm of YGGDRASH gives authority to people with high reputation. YEED will evaluate the reputation of users and those who have good reputation will not need to pay for “likes”. This feature is essentially a parallel to the rationale that individuals with high credit score pay less fees on transactions while companies with solid financial structure receive higher credit ratings.
Minimization of Block Data Size
The YGGDRASH ecosystem uses Akashic Records & Block Box to minimize the size of block data. By doing this, they solve the problems current blockchains have including data capacity issues and throttled block synchronization speeds.
This downsizing of data will significantly reduce efforts preparing node and shortens the delay from several days to less than an hour. This is considerably faster compared to the download of a full node for Bitcoin taking 14 days, and 7 days for Ethereum.
Delegated Proof of Authority (DPOA)
The consensus algorithm of YGGDRASH is a delegated proof of authority, which is a reputation-based algorithm. With DPOA, the ecosystem selects nodes with the highest reputation score as a representative through the reputation evaluation chain. DPOA assures independence, incentive, and expandability while increasing connectivity.
Each DApp is an Independent Blockchain
One Dapp in the ecosystem is an independent blockchain, so essentially each dapp maintains network, governance, database, and service of its own. An overload on one Dapp will not affect the other networks.
This improves data capacity, speed, and expandability. An example of what YEED improves on is comparing it to Ethereum network when the network was paralyzed due to the heavy network traffic from Crypto Kitty.
YGGDRASH Decentralized Exchange
YGGDRASH is coming out with its own decentralized exchange (DEX) where users on the network can trade cryptocurrencies directly in their personal wallet.
Interoperability is guaranteed on this multi-dimensional blockchain, as YGGDRASH can connect blockchains with other blockchains created at a different time. They do this through Akashic slice, a chain connection protocol.
Integrated Cross-Border Payment Provider
The ecosystem is working closely together with Bluepan to improve remittance environment in the ecosystem. YGGDRASH will essentially play a role as an integrated cross-border payment platform provider.
Blockchain 3.0, Building Upon Ethereum’s Weaknesses
YGGDRASH calls itself Blockchain 3.0, expanding upon and minimizing the weaknesses of the Ethereum ecosystem. Its main competitor is Ethereum, a “second-generation blockchain”, as well other blockchain platforms such as EOS, ICX, 0Chain, etc.
Currently there are a number of issues with Ethereum including:
- Limited scalability because all DApp data is processed in the single blockchain
- Limitation of the economic incentives similar to that of Bitcoin
- High gas fees
YEED solves these issues as each DApp on the network has its own blockchain, giving them much greater ability to scale.
YGGDRASH consists of a solid team with members coming from previous reputable blockchain companies such as ICON, Bithumb, Coinone. The team also includes advisors from the top schools such as Carnegie Mellon, and Berkeley.
- David Seo (CEO) — Previously: COO of Coinone (a mid-sized exchange in Korea), Project Manager at Meritz Securities
- Peter Ryu (CTO) — Previously: Co-founder / Development Team Leader at ICON Foundation (ICX), Blockchain Architect at THELOOP
- Joon Seo (CFO) — Previously: MBA Candidate at UC Berkeley, Ernst & Young Korea, Ernst & Young China Shanghai, Hyundai Card/Capital
The YGGDRASH advisory team is stacked with executives from Hyundai Capital, HSBC, Citibank, Samsung, and many more reputable companies. The extent to which how involved these advisors are in this project is unclear at the moment. In addition, the company is allegedly partnered with Bluepan, the largest player in the remittance market.
YGGDRASH aims to target industries to industries, connecting different DApps and blockchain networks together. They are also targeting individuals and companies.
Example Use Case: Ride Sharing
Peter sets a business meeting on his smartphone with a certain location and at a certain time. When he leaves the building, an unmanned vehicle is waiting for him. When he gets in the car, it drives him to the location via an optimal path. Upon arrival at the destination, he gets off the car and heads to the meeting.
How does YGGDRASH operate in this situation? As soon as the meeting schedule is set, YGGDRASH (or a DApp), which is installed on his smartphone, calls the nearest unmanned car. When the closest and most reputable unmanned vehicle is assigned, the car immediately arrives at the pick-up point and waits for Peter. The cost for the ride will be uploaded soon after Peter gets in the car and will be paid immediately upon arrival.
Right after the payment is made, the reputation of the unmanned car rises and the revenue from the payment is automatically distributed to the relevant account of the unmanned car branch chain. A person who wants to invest in the unmanned vehicle can invest by purchasing a token of a branch chain operating the unmanned vehicle. If Peter does not show up, the reputation score of Peter will be reduced and there will be a disadvantage in cost and time for calling an unmanned vehicle next time.
ICO & Tokenomics
The ICO for YGGDRASH was completed in less than 24 hours, with $40,000,000 USD raised through private investors and public pre-sale investors. A public main sale was not required.
Here at Lunar Digital Assets, we believe that YGGDRASH is a very ambitious and potentially disruptive project, naming themselves blockchain 3.0, improving upon the weaknesses of other major tokens such as Ethereum. The project has a well-rounded, experienced team, game-changing technology, and a great community backing the token. However, they have much work to do, and there will be many obstacles, challenges, and competitors. However, we believe that a speculative holding on YEED could be a very rewarding long-term investment.
DISCLAIMER: We are in no way associated with the YGGDRASH team. Neither is this meant to be financial advice. Whatever follows, just reflects our understanding of the project, and our personal opinion on its outlook. Always do your own research.
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Originally published at lunardigitalassets.com on March 27, 2018.