Waterfall AMA session 15/02/24
Table of contents
- Community is the backbone of decentralization; the more we contribute, the stronger and more secure our network becomes.
- The more transactions we have, the more coins are burned, leading to a deflationary trend that can balance out inflation.
- Unlock the potential of your tech investments by leveraging new networks for smart contracts and decentralized finance.
- We're redefining scalability in decentralized networks by leveraging subnetworks for efficient parallel processing, paving the way for virtually unlimited charging on our platform.
- We're redefining scalability in decentralized networks, paving the way for virtually unlimited transactions without compromising performance. Stay tuned for groundbreaking results!
- High transaction throughput keeps fees low, even during fluctuations. Adapt and optimize to thrive in the ever-evolving network landscape.
- Embrace the trial and error of innovation; it's how the best ideas emerge and evolve.
Community is the backbone of decentralization; the more we contribute, the stronger and more secure our network becomes.
Hello everyone! I am very happy to be here today to discuss some important topics regarding our community and technology.
Waterfall is designed to accommodate a large community, and it is essential to understand that the community is the most important part of our decentralized technology. When we talk about decentralization, the level of community contribution is one of the key elements. There used to be a term called layer zero, which was used to define the community of the protocol. Currently, we can say that the more validators that join, the better it is for the network.
The more of us that are involved, the more secure the protocol itself becomes. Waterfall has the potential to be one of the most, or maybe even the most, decentralized technologies, and we all can be contributors to this effort.
Additionally, we have been discussing the upcoming launch of Waterfall, which is very exciting. As we approach this launch, we are also considering the mechanisms that regulate inflation and deflation within our system.
To address this, I will pass the discussion to my colleague, who will provide answers to these key issues. In short, there are two mechanisms: mining and points. Let’s dive deeper into how increases and decreases in the circulation coin supply relate to inflation and deflation.
The system experiences inflation and deflation based on various factors. The percentage of the minimum amount of the total supply is insignificant, about 3%. However, as the number of workers grows, this percentage gradually increases, leading to an annual inflation rate of about 8% when 10 billion Water are staked. Additionally, the number of transactions per second has a significant impact on the deflation process, especially with a higher block.
Thank you for your attention, and I look forward to our continued discussion!
The more transactions we have, the more coins are burned, leading to a deflationary trend that can balance out inflation.
Coin supply is influenced by inflation and the transaction fees associated with the system. The percentage of the minimum amount of total supply is insignificant, approximately 3%; however, as the number of workers grows, this percentage gradually increases, leading to an annual inflation rate of about 8% when 10 billion Water are staked. Additionally, the number of transactions per second has a significant impact on the deflation process. With higher block occupancy, a deflationary trend can occur, as more transactions take place and more coins are burned due to transaction fees.
For example, with 5,000 transactions per second, the inflation rate equals zero, and as more transactions occur, the deflation process begins to take effect. Currently, we are planning for a significant date, which is the 25th of March. Alex can correct me if I'm wrong, but this is the intended date for the network launch. There will be announcements regarding the launch and ways to participate, so please feel free to ask any follow-up questions on this topic.
Moving on to question number three, could you share some of the results and conclusions from the testnet, especially regarding performance? First of all, I would like to thank our community members for their support in the network. You can see a page with corresponding network statistics; the test version was launched on November 14, 2023, with more than 300 workers participating. The number of workers depends on how many engage in the network, and we intend to engage millions of workers in the future.
Now, I will not go into all the figures, but let’s consider the final table where the first workers are sorted by their contributions. I would like to highlight that the fixed workers' state is equal to 3 points, which makes a difference in the current balance.
Next, let’s discuss the benefits that users can gain from the protocol. There are multiple levels of understanding regarding these benefits. For example, the benefit for users is that you can join the network and validate transactions using inexpensive devices and a basic home internet connection. In simpler terms, if you have a computer that you bought in the last ten years, you can utilize it. You can turn it on and set up your home internet to participate in the network.
Moreover, you will be able to manage your assets through the bridge, allowing you to withdraw your funds effectively.
Unlock the potential of your tech investments by leveraging new networks for smart contracts and decentralized finance.
Expensive devices can utilize home internet effectively. Let me put it this way: if you have a computer that you bought in the last ten years, you are able to turn it on and set up the home internet.
For example, you can perform complicated computations through the bridge, allowing you to withdraw your assets. You will be able to withdraw them back from Ethereum or other different EVM protocols. Additionally, the Bitcoin partnership enables you to create some sort of side network for Bitcoin, where you can create smart contracts and engage in various DeFi-based transactions. You can deploy applications using the wrapped version of Bitcoin and then withdraw it back to the Bitcoin network.
For developers, this also allows for low-cost and user-friendly network integration. You can deploy and grow with the community of Waterfall, which is quite active. We sincerely appreciate the attention and loyalty of our community.
In general, there is a part of the technology that involves users, developers, and enterprises. Developers from different markets can specify their needs and progress. The question many are asking is about the launch and how much it will be from the testnet. I will transfer this to Alexander for further insights.
We are currently fixing and finalizing tasks, and soon we will make an announcement about our developments. Maybe today, we will update you on the testnet and the economy.
I will start from the work of our research department. We are planning to provide more details on this topic after we finish our current tasks. We aim to continue moving concurrently with subgroups. This is how we usually work; however, right now, the research group is focused on one task. The second group will be working on the next steps for subnetworks. You can find a description of these steps in the relevant papers.
We're redefining scalability in decentralized networks by leveraging subnetworks for efficient parallel processing, paving the way for virtually unlimited charging on our platform.
We are planning to utilize a structured approach to continue moving forward concurrently with our research groups. This is how we usually work; however, right now, the entire research group is focused on one task. The first subgroup is working on Step One, while the second group will be working on Step Two for subnetworks.
To provide more details on this topic, you can find a description of the steps in the papers regarding our directions. In general, I will outline our Light Notes, which we essentially plan to use for different mobile device platforms, including smartphones. There are three steps involved in our process.
Step number one addresses how the notes will reach consensus without storing the transaction history. This has already been discussed. The second step involves a blinking concept that we currently have as a requirement. The nature of our devices means they are going on and offline throughout the day, which necessitates this research into the blinking concept.
Recently, we observed that the size of the state was close to 250 gigabytes. However, the size may become smaller in the future. Speaking of the second part of our research on subnetworks, I would like to remind everyone what subnetworks are. We are actually considering changing this name because "subnetworks" is used by multiple protocols. In theory, subnetworks refer to a deterministic division of the system into strongly connected subgroups.
To clarify, we are discussing the separation of subnetworks, where participants share the transaction pool within one subnetwork without sharing it with others. This allows them to create blocks that are propagated to everyone, but the transactions themselves are not propagated to everyone. This approach reduces the bandwidth requirements for the protocol and enhances the scalability of the network.
Each of the subnetworks will not only create their own group and propagate everything to everyone but will also create blocks, update the state, and share these updates with the rest of the group. This further decreases bandwidth requirements and paves the way for parallel processing.
Currently, we are exploring a different angle of approach for parallel processing on the waterfall model. Thank you for your questions, and I would like to pass it over to our colleagues. We aim to implement virtually unlimited charging on the water platform. Our methods intend to overcome the limitations of scalability while preserving decentralization. Results will be submitted for publication soon, and we look forward to presenting more details next time.
We're redefining scalability in decentralized networks, paving the way for virtually unlimited transactions without compromising performance. Stay tuned for groundbreaking results!
Share this update with the rest of the group regarding the further developments in decoupling the Band RE and the next step towards parallel processing. I will share what we are currently working on, which represents a different angle of approach for the parallel processing on the waterfall. Thank you for your questions to our colleagues; I will now hand it over to you.
We are excited to announce that we are implementing virtually unlimited charging on the water platform. Our methods are designed to overcome the limitations of scalability while preserving decentralization. Results will be submitted for publication soon, and we will present more details next time. Thank you.
As we proceed, we will utilize our methods across various platforms, including Windows, macOS, and Linux. Of course, we will have server versions that do not include graphical interfaces, which will be better suited for use on Mac. After lunch, we will consider developing mobile versions as well. We aim to ensure that there are no limits on the number of transactions per second and how they are regulated.
Let me put it this way: there is always a limit. Alex will correct me if I'm wrong, but currently, we have a slot length of approximately 4 seconds, and we are already testing the production of eight blocks at a time. Basic blocks can be created at a rate of 0.5 seconds per block. The size of the block can accommodate 100,000 transactions, and its size is slightly over 1 megabyte.
First of all, we are creating smart contracts (SCs) in the way we are adding highlighted features in the previous discussions regarding the future. The basic requirements for the network to operate will increase its performance significantly. We can achieve highly scalable sharding, and this scalability will be significantly improved compared to what we currently have. Alex will provide updates on the progress of the scalability of the SH. We expect it to increase significantly moving forward.
The second part of our concept is the idea of virtually unlimited replication, which allows for highly scalable sharding. While we do not use the term unlimited scalability, we anticipate that the number of transactions will be very high.
To manage fluctuations in transaction flow based on a ledger structure, we are automatically maintaining a high transaction throughput. This approach allows us to keep transaction fees low as the network expands in various scenarios, even during peak times. Currently, we have limitations on our test network, specifically on the number of transactions that can be included in the block, which is set at 100,000.
High transaction throughput keeps fees low, even during fluctuations. Adapt and optimize to thrive in the ever-evolving network landscape.
The discussion revolves around fluctuation in transaction flow based on a leader structure, which automatically maintains a high transaction throughput. This capability allows us to keep transaction fees low as the network expands in various scenarios, even during challenging times.
Currently, we have a limitation on our test network, specifically regarding the number of transactions that can be included in the block. At present, we can handle 100,000 normal transactions, which involve the transfer of course. The block size is also a factor in this process. For our test network, we have managed to achieve about 3,000 transactions per testnet. In the previous testnet, we had approximately 5,000 transactions, but we faced limitations on the number of transactions per block.
Looking ahead to testnet 8, we plan to increase our limitation to 10 transactions per block. This change is expected to generate a significant number of transactions, around 100 transactions.
As always, we encourage questions. The next topic of discussion is whether we are planning on adding our own AI. The implementation of AI is becoming increasingly complex, especially as we enter what can be described as a hype season. Currently, there are several trending topics, and while there have been various trends in the past, we can observe a very active development of different use cases.
It often resembles a process of throwing spaghetti at the wall to see what sticks. This phenomenon is not unique to the crypto industry; it occurs in other sectors as well. Some use cases remain viable and undergo extensive trial and error. As we navigate this landscape, we are committed to exploring and developing innovative solutions.
In summary, we are continually researching and optimizing our network capabilities while remaining open to questions and discussions about our future direction.
Embrace the trial and error of innovation; it's how the best ideas emerge and evolve.
In recent discussions about hype in various industries, particularly in crypto, we can observe the very active development of different use cases. It often resembles the approach of "throwing spaghetti to the wall and see what sticks." However, this trial-and-error method is not unique to crypto; it is common in other industries as well. Some use cases do remain and become viable, while others fade away.
Reflecting on the past, particularly around 2017, many people attempted to implement the use case of transferring paper contracts to smart contracts. For various reasons, many of these projects have struggled. However, advancements in AI allow us to introduce new methodologies. I am currently working on this topic and addressing it in a structured manner.
For example, a paper contract consists of a set of rules governing the behavior of different counterparties involved in an agreement. There is a limited number of classes of these contracts, and one can create rules for various types of events and surrounding activities regulated by the agreement. The general approach has been to create a set of rules and a final agreement, allowing for the management of potential accidents that may occur.
In a more practical sense, we could have a chat interface where users can import the terms of a written contract. This contract could then be transformed into a smart contract for the network. Currently, we are exploring the use case of such activities with commodity trading platforms. There will be more formal announcements regarding this in the future.
When successful, this use case can be migrated to different industries, adding another advantage to waterfall technology. We can implement standard functions and agreements in the form of smart contracts. For standard types of agreements, we will be able to embed an understanding of these agreements into the core of the network, along with standard reactions to them. Moving forward, AI will facilitate special transactions by providing smart contracts that can save developers and users who deploy these types of contracts.
We are actively exploring various other use cases in this direction. As we progress, there will be more formal announcements. I am happy to respond to your questions, so please feel free to ask any follow-up questions.
Now, addressing the last question for today, which is number ten, I would like to emphasize the importance of participation in the network. The more participants there are, the more secure the network becomes. For developers, there are opportunities to deploy their contributions to enhance network security.
Regarding the current testing phase, we have a testnet available, and soon there will be a mainnet with mainnet coins. Rewards will be provided in these mainnet coins, which can also be utilized for various activities typical of the coin. The basic smart contract platform we are developing is designed to be user-friendly.
In conclusion, I appreciate the feedback provided by one of our community members, noting that the process is extremely intuitive and easy to navigate. We are working towards making the setup process even simpler, as described by Alex, with a one-click setup that will allow average users to download the node and go through an intuitive setup process. This will further contribute to the decentralization of the network.
We are grateful for your participation and contributions. If you have any questions, please feel free to ask, and we are happy to provide more details on any of the topics we highlighted. Thank you for your engagement, and I hope you have a great rest of your day!