The Cosmos Ecosystem is ever expanding. And among the products getting traction early in 2024 is Dymension. But why? This guide looks keenly into the Dymension ecosystem.
Please keep reading.
What is Dymension (DYM)?
Dymension is a top-tier web3 network focusing on providing high-speed modular blockchains named RollApps. The applications are designed to completely transform how developers can build blockchain focused solutions which are easily deployable.
RollApps are the product of merging the efficiency of rollups with the tailor-made capabilities of blockchain applications.
So, what is the difference between rollups and rollapps?
Rollups are fashioned as execution modules to process transactions off the blockchain and return the data to the main chain. Their most fundamental purpose is bolstering the scalability of main-layer chains, including the likes of Ethereum and Solana.
Rollups refer to a technology where multiple or myriad transactions are bundled into 1.
So, what about Rollapps?
On the contrary, Dymension’s rollapp concept primarily scales a network or an internet of networks. A rollapp is essentially an application-specific chain on an IBC landscape. Rollapps help streamline the deployment of app chains.
Dymension is a modular blockchain specifically crafted to support these RollApps. It functions as a settlement layer for these apps while providing the needed development toolkit for their creation.
As such, the network will be akin to fertile fields where these Rollapps will be planted and thrive. These easily deployable apps also benefit from near-unlimited interconnectedness, high-level security and lightning-fast speeds.
The Dymension style Rollapps are created for one reason, addressing the blockchain trilemma of scalability, security and decentralization. To address this, the rollapps employ a technology called Elastic Block Production.
The Dymension Team!
This platform is the brainchild of a robust team of experts; all focused towards the goal of offering efficient RollApp services. Yishay Harel, a con-founder of this project, currently heads it. When writing this report, the team had nearly a dozen members but plans to expand were in the process.
Funding?
The Dymension network has also secured millions in funding to enhance the project’s development. Among the financial backers of Dymension include Stratos, Matchbox DAO, Big Brain Holdings, and Shalom Meckenzie of DraftKings.
How Does Dymension Work? Dymension Hub
Deep within the Ecosystem is a marriage of many special tools, all functioning together to bring the best experience for the average user. Here, we explore the primary tools associated with the Dymension network, starting with the Dymension Hub.
The Dymension Hub
This is the settlement layer of the entire Dymension network. Let me explain! The settlement layer of the blockchain is charged with the primary security of the network.
The Dymension Hub is primarily associated with Rollapps settlements and even consensus. It’s a Cosmos-SDK-based PoS blockchain network leveraging the strength of Tendermint Core to store a ledger of RollApps data.
Dymension leverages the Rollapp concept to create strong rollups within its settlement layer.
The consensus of the Dymension Network and its RollApps happens at the Dymension hub. This hub leverages IBC to enable cross-chain messaging and light client bridging.
Everything about Dymension’s security and integrity happens through the Dymension Hub. Moreover, this network affords liquidity through an AMM implanted within the system.
This hub functions by providing three key features for the rollapps:
- Security
- Interoperability
- Liquidity.
Finally, the hub helps facilitate successful interaction and interoperability between RollApps and the ecosystem. It leverages Cosmos SDK, enabling the rollups to communicate with each other. Moreover, using Cosmos SDK means the rollups can convey info to other IBC-enabled chains.
Native within the Dymension hub is a comprehensive registrar of Rollapps, with other details like rollapps state and sequencers.
Deep in the heart of Dymension is a series of features and tools designed to enable the efficient functioning of the network. All these features are interconnected to interact and provide smooth sailing for developers and investors.
So, what are these features?
Elastic Block Production
Elastic Block production focuses on the production of blocks only when there is demand. It does not incorporate intervals at which blocks should be produced. As such, the blocks will be produced only when there are enough transactions within the network.
Why is EBP a very good system?
Many blockchains today leverage the interval system, producing blocks every few minutes. For instance, Bitcoin must produce blocks every 10 minutes.
On the contrary, Dymension’s system focuses on block production only when there are transactions. This reduces the workload of the network.
Data Availability Networks
These are simply databases. By design, the data availability networks provide a platform to store data temporarily. The data stored in these centres is vital for the basic operations of the network.
RollApp Development Kit (RDK)
Dymension brings with it a unique development kit for RollApps. This tool enables developers to create and deploy RollApps. The RDK comprises some prebuilt modules designed to speed up the process of developing RollApps.
The RollApp Virtual Machine
The RollApp virtual Machine RVM is a critical component of Dymension as it simulates an execution environment for Rollapps within the settlement layer. The RVM provides a diverse range of execution environments, bolstering the adaptability and flexibility of RollApps.
Inter-Rollup Communication
Dymension, through the inspiration of Cosmos’ IBC, launched its own native Inter Rollup communication protocol that enables messaging between the network-based rollups. It’s a vital tool for communication, hence enhancing exchange.
Launch Your RollApps to Avoid Consensus
The entire idea behind the creation of Dymension is to offer a platform where users can launch blockchain-based applications without being concerned about consensus. While offering this service, Dymension promises the following advantages for developers and average users;
Autonomy
By developing a RollApp application, you enjoy the benefits of running your blockchain application. This affords you maximum flexibility and minimum overhead.
Performance
Dymension allows the developers to create highly scalable applications akin to traditional low latent servers. It allows you to outsource the consensus services to the Dymension hub.
Liquidity
By using Dymension hub, you earn the opportunity to get access to a huge pool of liquidity afforded on the Dymension Hub.
Dymension DYM Token
Embedded deep in the Dymension ecosystem is the native token called DYM. As a blockchain-focused token, DYM helps in completely powering the network. Here are the major utilities of the DYM token:
- Ecosystem security – Through powering the consensus mechanism, DYM secures the Dymension ecosystem.
- Incentives — DYM tokens are also the primary assets for rewarding the average investors. For instance, those locking bridged tokens using Dymensions web apps earn DYM as a reward. Moreover, participants can deposit the DYM tokens on liquidity pools within the Dymension Hub AMM.
DYM Price Performance and Prediction
The DYM token was merely a month old when writing this report. It launched for $4.6. In its early days, it dropped below the $3 mark. However, when writing this report, DYM was trading at about $6.38. This is still much lower than its all-time high at the time of about $8.5.
With a total market cap of $850 million, less than a billion, DYM is seen as a potential token to give at least 10x gains in the coming bull season. This means that DYM could surge from the current $5.8 to about $60 in the next 18 to 24 months.
Its unique type of service offered in the Cosmos ecosystem puts it atop other popular crypto networks. As such, DYM remains a high-potential token within the crypto ecosystem.
Other analysts predict that DYM will get to a high of 16.9 by 2025 and probably break past 100 by 2030.
Where Can You Buy DYM!
With such a massive potential, new investors must know where to purchase this coin. So, where can you buy DYM? Here are the top spots for the token:
- Binance Exchange — The largest crypto trading network is also the best center for purchasing DYM tokens. The most active DYM trading pair in Binance is DYM/USDT. Other popular trading pairs include DYM/TRY, DYM/FDUSD, and DYM/BTC.
- Bybit — Another popular exchange supporting the purchase of DYM is Bybit, which primarily deals with the DYM/USDT pair.
- KuCoin — This exchange also offers the DYM/USDT market.
- Osmosis — The largest Cosmos-based DEX platform provides several markets for DYM, including USDC/DYM, DYM/OSMO and INJ/DYM.
- Gate.io primarily offers the DYM/USDT market.
As already seen from the trend above, the DYM/USDT pair is the most prevalent DYM market across many exchanges. Exchanges like Kraken, BingX, Bitget, Phemec, and MEXC also support DYM trading.
Dymension Network: The Final Word
After an indepth look into the Dymension Ecosystem, it’s clear as day that Dymension affords users a futuristic technology. Developers can launch apps RollApps on top of Dymension, using the hub for consensus and security.
Through its unique blend of features and tools, Dymension can bring benefits like ease of deployment, autonomy, connectivity, speed and cost-friendly transactions.
With its futuristic solutions, Dymension has already seen immense growth in usage and investment. Moreover, it’s shaping up as one of the tokens investors must buy in the 2024 bull season.
