An overview of Agoric, the JavaScript-native smart contract platform - Simply Staking
This article gives a brief explanation of Agoric, a Proof-of-Stake chain upon which DeFi dApps can be built and deployed using secure JavaScript smart contracts. This is possible because this open-source development company offers developers a reusable and robust library consisting of DeFi components to make the development and deployment quicker and easier.
Technology
This article will start off by going through the technology underlying Agoric, which brings about security and composability. This is done by merging together the following frameworks/ideas:
Zoe: This is a framework used to protect on-chain assets, ensuring safety to anyone using applications built on Agoric, even in case of malicious third-party smart contract code. This is done by guaranteeing users get what they want or a full refund of the assets being placed in contracts. Keeping this in mind, developers can also focus on the essence and functionality of their smart contracts.
Digital Assets: Agoric enables fungible and non-fungible tokens which can be transferred just like any other asset.
- RUN: This is a stable local currency to facilitate economic growth and on-chain transactions. In fact, it is:
1) Used to pay for the execution of transactions or other chain services. These fees are used to support staking and the security of the chain.
2) RUN is pegged to USD, being backed by on-chain collateral. - BLD: This is the staking token used to secure and stabilise Agoric.
1) Stakers earn staking rewards for locking their tokens to secure the network.
2) Staked BLD enables token holders to participate in network governance and decision making.
SES(Secure ECMAScript): This is a Javascript runtime library that ensures that all components and third-party code run safely. This is important because most Javascript applications use third-party code in the form of modules, libraries and packages.
Tendermint: This is the protocol used by Agoric to achieve consensus between nodes, process transactions, and produce new blocks, furthering the state of the chain.
ERTP (Electronic Rights Transfer Protocol): This is the protocol used to enable trade and digital assets in simple JavaScript. Thanks to the ERTP API, Agoric provides a way for you to easily create and use fungible and non-fungible tokens with the exact same security properties.
CapTp: This protocol ensures safe communication between objects located on different computers by making it easy to write safe distributed code that runs across chains and computers.
IBC (Inter-Blockchain Communication Protocol): This enables Agoric to access other IBC-enabled blockchains such as other Cosmos chains, and Cosmos assets since it provides a way for messages to be sent from one blockchain to another.
Why Agoric?
This section provides reasons why Agoric is increasing in popularity:
- Simplified Development Process: Agoric strives to make sure that time and resources are saved in the application’s journey. An application’s journey consists of the following three main steps:
- Choosing components from the library
- Building the Dapp
- Deploying to market via the deployment mechanisms - Variety of Components: Agoric is built on a JavaScript library of reusable components developed by experienced community members.
These components include but are not limited to the following functionalities:
- Accept RUN in your contract
- Launch your own token using ERTP
- Agoric’s Swap is an AMM which is pluggable and reusable
- Accept supplied capital, make loans and charge interest
- API integration for pricing data
- Easy connection to off-chain data and services via Chainlink
- Native connection to other IBC enabled chains
- UI widgets to render Agoric ERTP concepts like purses and amounts
- Notifiers for wallet events and state updates - Smooth connection to other chains: Assets can easily be transferred between Agoric accounts and other chains with ease since interoperability is a top priority within the Agoric experience. One can easily connect to Ethereum via the Gravity Bridge while it can connect to any Cosmos or other chains using IBC. Furthermore, Agoric is also integrated with Chainlink, allowing your application to function in an environment rich in data.
- Financial Incentives: Moreover, Agoric offers the following opportunities for a dapp to start earning:
- Creating a native governance token easily which captures protocol fees
- Agoric will be launching fiat on-ramps partnerships which make it easier for a dapp to onboard users with a credit card or fiat currencies
- Agoric allows projects to monetize off of interest on balances by providing block-level rate calculations and timing notifiers to manage this.
- Getting paid by users in RUN, Agoric’s local currency. - Earn Faster: With Agoric, one can earn faster due to:
- Market services which allow easy access to DeFi services
- Cross-chain assets which can be obtained from networks such as Cosmos and Ethereum
- Resource Management which allows you to focus on the development of your application without worrying about complex protocol or third-party integrations. - Proof-of-Stake: Participants in the Agoric ecosystem bid to have their transactions validated by validators. Moreover, stakers delegate their BLD tokens to validators to incentivize the correct execution of transactions. These staked tokens give validators the right to participate in the network by validating transactions while stakers earn rewards for securing the networks. Moreover, this approach encourages validators to play by the rules because if not, not only they do not earn rewards but also have their stake slashed.
- Community Driven: Agoric makes the community a big part of its development by issuing Developer Bounties for developers who contribute to the development of important pieces of infrastructure with Agoric components. Moreover, Agoric also encourages validators to keep active and participate in securing the network by offering rewards for the completion of issued competitive challenge tasks.
Get in Touch
Stay tuned to Simply VC for more Agoric and Proof of Stake related guides:
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