Taraxa Project
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Taraxa Project

Introducing Pollen: Taraxa’s Cross-Chain Bridge.

By Justin Snapp, CTO of Taraxa.

Taraxa aims to be the blockchain on-ramp for everyday business activities, but this is only the start, of the Taraxa value proposition. In this article, we discuss Pollen, the proposed Taraxa cross-chain bridge for vastly amplifying the financial value of these operational data seeds.

Taraxa: On-Ramp for Everyday Business Activity.

Taraxa is purpose-built to be a wide pipe for onboarding the tremendous amount of business activity and agreements into a distributed public ledger. Taraxa directly unlocks the significant value of provenance and immutable tracking of business activity to business operations and within those existing business relationships.

But there is far more valuable to be realized from establishing these business agreements beyond the operational value. For any business, establishing business credit, and getting access to financing is a critical step. Business credit revolves around identity, relationships, and follow-through on commitments, the very things that Marinate captures on the Taraxa chain.

Centralized services, such as for instance, Dun & Bradstreet, exist for the very purpose of matching a business identity to business activity for the purpose of establishing credit, Taraxa enables these kinds of services within the Defi ecosystem.

Nothing is more powerful that doing what you said you would do, and paying when you said you would pay:

1. Put your business on the map

2. Maintain good credit with suppliers and vendors

3. Obtain an employer identification number (EIN)

4. Pay on time all the time

Source: https://www.nav.com/resource/how-to-establish-business-credit/

To unlock the potential of vendor/supplier/retail/service/business credit directly within the DeFi ecosystem, Taraxa proposes the Pollen bridge between Taraxa and Ethereum (and future other chains).

Let's look at the value that the Pollen bridge between Taraxa and Ethereum provides through the following considered use cases:

  1. Cross-Chain Smart Contract Calls and Transactions
  2. Liquidity Staking
  3. Long-Range Attack Prevention

Cross-Chain Contract Calling

Most blockchain bridges enable cross-chain transactions, and certainly, Pollen will support that, but the real power of Pollen will be in supporting cross-chain contract calls. By enabling DeFi applications to call directly to smart contracts within the Taraxa blockchain we will realize the full potential of the heterogeneous blockchain ecosystem and prevent the siloing of operational and financial applications.

[Nissl and Sallinger, 2020 https://arxiv.org/pdf/2010.07352.pdf ]

Liquidity Staking

One of the core challenges the DPOS platform face is that incentivizing staking of coins, while good for a token price, can create ill-effects such as excessive slippage, and present a barrier to the underlying utility of the token and ledger function. Liquidity pool tokens offered by decentralized exchanges offer a critical solution to combat this problem. With Proof of Liquidity, staking and liquidity are proportional rather than complementary (as in the case of Proof of Stake). The Pollen bridge enables liquidity staking to be rewarded and to achieve net incentives to provide balanced liquidity even at high staking rates.

https://www.placeholder.vc/blog/2020/5/22/proof-of-liquidity also https://medium.com/paradigm-fund/combining-staking-and-liquidity-provisioning-d30e9d67d713

Long-Range Attack Prevention.

Proof of Stake protocols are particularly sensitive to long-range attacks. While several strategies can be employed within the blockchain to prevent long-range attacks and prevent costless simulation (ex. Taraxa employs verifiable delay functions), the publication of checkpoints from the Taraxa chain, as part of the Pollen bridge makes a long-range attack require corruption of both chains.

You can ask Justin Snapp questions on Discord, follow Taraxa on GitHub, and stay tuned for more development updates from us!

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A fast, scalable, and device-friendly public ledger designed to help IoT ecosystems become more trusted, autonomous, and valuable.

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Olya Green

Olya Green

I write about Tech and Design

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