Namada, the privacy-centric Layer 1 blockchain, is redefining asset transfers across blockchains. By seamlessly bridging IBC-enabled blockchains and Ethereum, Namada empowers users with ultra-low costs and intuitive privacy features.
Are you ready to step into the revolutionary world of Namada and experience the future of secure and seamless transactions with us now?
What is Namada?
Namada is a Layer 1 blockchain that utilizes the Proof of Stake (PoS) consensus mechanism and implements independent privacy rights for assets between chains, known as Interchain Asset-agnostic Privacy. It is compatible with Cosmos’ IBC, enabling swift asset transfers between IBC-enabled blockchains and Ethereum at low costs.
Namada shares a similar structure with Anoma, a protocol focused on protecting privacy and addressing decentralized P2P payment challenges across multiple blockchains. The development of Namada aims to safeguard user privacy when transferring assets between blockchains through a user-friendly interface.
Learn more: What is Namada Network
What is Anoma?
Anoma is an intent-centric, privacy-preserving architecture for decentralized counterparty discovery, solving, and settlement.
How does Namada relate to Anoma?
Anoma is a full-stack architecture designed for the long term, while Namada is a specific chain and feature set designed to provide practical privacy now.
Why Namada?
Privacy should be the default and inherent in the systems we use for transacting. However, a safe and user-friendly multi-asset privacy solution does not yet exist in the blockchain ecosystem. Until now, users have had to choose between a sovereign chain that reissues assets (e.g., Zcash) or a privacy-preserving solution built on an existing smart contract chain.
Both options have significant trade-offs: in the former case, users don’t have assets they want to transact with, and in the latter case, existing platforms have restrictions that lead to the leakage of non-trivial metadata and expensive and clunky protocols.
NAMADA ADDRESSES THESE CHALLENGES.
Namada supports any fungible or non-fungible asset on an IBC-compatible blockchain, as well as fungible or non-fungible assets sent over a custom Ethereum bridge (such as ERC20 tokens and ERC721 tokens, respectively). Once assets are on Namada, shielded transfers are inexpensive, and all assets contribute to the same anonymity set.
Users of Namada can earn rewards, retain privacy of assets, and contribute to shared privacy.
The Namada’s architecture
Cubic Proof-of-Stake (CPoS)
Namada is a custom layer 1 protocol that deploys Tendermint BFT as its consensus algorithm and Cubic Proof-of-Stake (CPoS) as its sybil resistance mechanism. It incorporates advancements such as the reward distribution model via an automatically compounding variant of the F1 fee distribution and cubic slashing. These features are designed to discourage validators from operating the network with similar configurations, increase the robustness of the network, and promote diversity in infrastructure architecture among validators.
Here are some of the innovations that come with CPoS that are relevant to validators and delegators:
- Upgraded Variant of the F1 Fee Distribution Mechanism: Staking rewards compound automatically, eliminating the need to make transactions to claim staking rewards and re-stake them.
- Cubic Slashing: Penalties for safety faults in Namada are calculated following a cubic slashing algorithm. The amount slashed is exponentially higher if more validators or a larger single validator commit faults at the same time. Cubic slashing encourages validators operating multiple consensus nodes to deploy more diverse and uncorrelated setups.
- Improved PoS Guarantees: The cost of attacking Namada is quantifiable in all cases due to the automatic detection mechanism that identifies accounts that contributed to the fault (validators, delegators, etc.).
- Transaction Fees in Multiple Assets: Transaction fees can be paid in many tokens, and which tokens are accepted can be updated via a governance vote.
Cubic Slashing
IBC-compatible
To support non-native fungible and non-fungible tokens, Namada is integrated with the IBC protocol and custom bridges. This enables interoperability with platforms that do not support deterministic finality, starting with a bridge to Ethereum.
Governance
Namada has two governance components: an off-chain signaling mechanism and an on-chain voting mechanism. The on-chain voting mechanism is a simple text-based proposal voting system implemented as a validity predicate. The off-chain signaling mechanism acts as a coordinator among validators in case a proposal requires a hard fork, allowing operators to agree on the next move.
In other words, the governance mechanism works off-chain, including the stake based on the last snapshot.
Namada’s governance mechanism consists of two protocols:
- On-Chain Protocol: This protocol supports text-based proposals with stake-weighted voting. Anyone with NAM tokens can vote in governance, and delegators can overwrite their validators’ votes.
- Off-Chain Protocol: In cases where the Namada chain is unable to produce blocks, validators can use the off-chain protocol to signal and coordinate a common move.
Multi-Asset Shielded Pool (MASP)
The Multi-Asset Shielded Pool (MASP) is a zero-knowledge circuit that enables all assets to share one anonymity set. This property is crucial as it allows both fungible and non-fungible assets to share the same shielded set, ensuring privacy guarantees are not affected by the volume of transactions with a particular asset.
MASP subsidizes privacy as a public good via protocol inflation without encouraging transactional spam. With MASP, Namada has a shared protected pool for all assets, including both fungible and non-fungible assets, instead of separate pools for each asset. This enhances privacy, particularly for unique or low-volume assets. If these assets had separate pools, tracking transactions in and out would easily reveal identities.
In MASP, all transactions are indistinguishable from each other. For example, when creating a note, the sender, recipient, content type, and asset quantity are all shuffled and cannot be linked. Outside of MASP, everything is displayed in transparent accounts, similar to blockchains like Ethereum.
A note in MASP is created using Zero Knowledge Proof (ZKP) with three values:
- Asset Type: ETH, NAM, or NFT.
- Quantity: The number of units of the asset, such as 1 ETH or 1000 NAM.
- Address: The owner of the asset and any additional notes.
Public Goods Funding (PGF)
Namada will support both retroactive and proactive public goods funding, managed by a public goods funding council composed of trusted community members. This council has joint authorization over public goods funding disbursement transactions.
Proactive Public Goods Funding is continuously distributed to recipients over time to cover costs, while Retroactive Public Goods Funding is distributed in lump-sum payments based on past work. The goal is to incentivize outcomes that benefit future users of Namada.
The council is elected bi-annually by Namada governance and subject to spending caps but otherwise has the flexibility to fund public goods as council members see fit.
Conclusion
Namada is designed to safeguard user privacy during asset transfers between blockchains, prioritizing a seamless and user-friendly experience. Join forces with Originstake, a trailblazing validator of this groundbreaking blockchain! Let’s collaborate to redefine privacy standards and lead the charge toward a safer, more transparent digital landscape.
About OriginStake
Originstake is your professional and trusted validator that assists you in your staking activities. We provide full support services, a reward management dashboard, rewards sharing, and much more!
With Originstake, staking is safe, profitable, and extremely cost-effective!
