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Orbit Chain

Orbit Chain

Orbit Chain: The Multi-Asset Blockchain. SystemOrbit ensures the safe and reliable transfer of blockchain assets, while securing scalability and security between blockchain and IBC by Delegated Proof-of-Stake Consensus.

Introduction:

Orbit-Chain is a multi-asset blockchain that stores, transfers and verifies information and assets which exist on various public blockchains through decentralized Inter- Blockchain Communication (IBC). One of the biggest benefits of utilizing IBC of Orbit Chain is that it to allows isolated public chains to connect to each other’s public blockchain. Orbit Chain is operated by the Orbit consensus algorithm which is based on Byzantine Fault Tolerance (BFT) algorithm. Delegated Proof-of-Stake (DPoS) based consensus ensures fast block generation with instant finality and high transaction performance.

There are two common issues that public chains are currently facing: that How to connect with other public blockchains, and How to ensure scalability while maximizing its utility. To overcome these two problems, public chains are trying to develop their own sidechain to connect with other public chains. However, isolation issues arise due to lack of interoperability. With Orbit IBC as a hub chain of the public chains, almost all blockchains could be connected one to another.

Orbit solves the issues on the blockchain world.

Orbit BFT Consensus:

The idea of implementing a Byzantine Fault Tolerance (BFT) consensus came from the challenges faced while building blockchain solutions for banks. Orbit chose Ethereum as the baseline protocol mostly because of its smart contract capability. However, the built-in consensus, proof of work or Ethash, is not the ideal choice when settlement finality and minimum latency is required.

Orbit’s consensus algorithm was designed based on the Practical Byzantine Fault Tolerance (PBFT) algorithm. The logic behind high performance and instant finality is to support the connection of many assets and usability Dapp services utilizing the Orbit chain. Orbit operate Ethereum-based blockchains that support Ethereum Smart Contract. Ethereum has been used as a platform for a long time to build decentralized applications (DApps) through the stability of Ethereum smart contract. Additionally, Ethereum 2.0 technologies such as Plasma, Casper, and Sharding are constantly being updated to create a fully decentralized and permissionless platform. Orbit chain is operated as a DPoS consensus blockchain based on the Orbit BFT (OBFT) consensus algorithm which improves the existing Ethereum PoW consensus issue.

The Orbit BFT algorithm is a 3-phase consensus algorithm that consists of PRE-PREPARE, PREPARE, and COMMIT. It confirms immediately after block generation by eliminating the issues caused by the generation of multiple blocks at the same height occurring in existing Ethereum, Bitcoin, and EOS. Therefore, the instant finality is expected to be very supportable in a blockchain where many financial transactions occur.

Block generation consensus by a selected few representatives of staking based PoS improves transaction performance limited to 10–30 per second in previous Ethereum to enable fast block generation and high transaction throughput.

Network components:
  1. Block proposer — Verifies, and consents to generate block on Orbit Chain
  2. Validator — Verifies and audits both of Orbit Chain and Public Chain. Also responsible for verification of Inter-block communication process.
  3. Operator — Operates Inter-block Communication to relay messages between public chains . Everyone could participate in as an operator.
  4. Fishermen — Monitors the operation of validators and operators through a periodical check or bad signal.

Orbit Inter -Blockchain Communication with other blockchains.

Lack of communication made it hard to exchange and transfer the value of assets between chains, leaving their economy isolated. It has been a common practice to mint assets such as USD and BTC in a chain through fixed value in a centralized method using the FIAT Gateway method, and utilize them in a chain. This method is based on the trust of the centralized subject. There are questions about the uncertainty due to lack of information and the security of the assets. To resolve these issues, many protocols have emerged for communication between unconnected blockchains through decentralization of the communication.

Orbit IBC protocol enables a decentralized 2-way pegging based on existing lightning network (micropayment for bitcoin) and Plasma (scalability solution for Ethereum 2.0) for public chain scalability and communication.

The method presented as Plasma Cash is a single plasma operator method.

Transaction Fee:

‌Orbit Chain converts assets from other chains into a standardized token within Orbit Chain. All DApps and transactions on Orbit Chain can utilize transaction services with this standardized token.

Within Orbit Chain, there are two major types of fees.

Transaction Fee = Computing Usage Fee + Asset Transfer Fee

1.Computing Usage Fee is a fee incurred from the previous Ethereum chain, for the computing resource that is required for occuring transactions.

2.Asset Transfer Fee is a value that is proportionally calculated to the amount of funds being transferred, that exists for the preservation of the network.

Asset Transfer Fee = MIN (Transfer amount * Asset transfer fee rate, Asset fee cap)

ex) Transaction transfer amount : BTC = 1 BTC/ ETH = 10ETH, Asset transfer fee rate : 0.0001

Then, Asset Transfer Fee ( BTC ) = 1 * 0.0001 = 0.0001BTC / ‌( ETH ) = 10 * 0.0001 = 0.001 ETH

‌‌‌Transaction fees are the backbones of the Orbit Chain token economy, as they support the chain and provide security to the value imbued to the chain. Orbit Chain, naturally, wishes to raise the value of its chain.

Validator Economic Incentive:

‌‌A validator participating in blockchain validation will be rewarded with the following:

Total Incentive to Stake = Staking Rewards + Transaction Fees + IBC Fee - Cost to run a Validator

‌All validators that stake their assets on the chain are subject to a monetary award defined by the inflation rate. They can also receive the transaction fee from the generated block. In addition to all this, should they be responsible in operating the IBC, they will receive additional rewards as compensation.

Limit of Block Validator Number:

‌Anyone can become a validator, provided they meet the minimum requirements. However, to become a block-producing validator, there may be difficulties if there are many validators, as too many block-producing validators may throttle the network with an increased number of computations. But increased number of block validators raise the stability of a network, therefore, an upgrade is planned to raise the number of block producers in the future through an upgrade in the network. Initial validators will be 21 people, but this number is designed to be increased through governance consensus in the future.

Staking Rewards:

‌Validators are rewarded every time a block is generated. This ratio of rewards received is proportional to the amount of funds staked in the entire network. When the staked amount is low, the ratio of reward goes up, whereas if the staked amount is high, the reward is lessened.

Slashing & Penalty:

‌This is a mechanism encouraging the validators to continually participate in producing blocks, through slashing and penalties. If a validator was to go offline, they would be penalized for it.

‌If a block is finalized and the node goes offline, the validator would lose x% of the funds staked. The value x is equal to the current interest rate.

‌For example, if the current yearly interest rate is at 5%, the validator could lose up to 0.0137% of the funds staked. This value is determined on daily basis.

‌If over 33% of the validators become offline and the block producing is stopped, then the offline validators could lose up to 60% of their funds in an 18-day period. This mechanism is a safeguard to protect the nodes that are online, so that the network can return to its normal state in a short amount of time.

‌If the amount staked falls below the minimum required stake, the validator would automatically become exempted from the list of validators.

‌If double signing occurs, where two different blocks of the same height are verified, the participants lose 60% of their staked funds, thereby maintaining the security of the network.

Partnerships

Gala Games x Ozys

In November 2021, the team behind Orbit Chain, Ozys partnered with Gala Games to integrate Gala Games in Orbit Bridge and KLAYswap. Through Orbit Bridge, ERC-20 based GALA tokens became available in form of KGALA, a KCT-based token. KGALA became available through KLAYswap’s Drops, and was airdropped to users of KLAYswap, and liquidity pairs using the tokens were created.

Orbit Chain x Celo

In November 2021, Orbit Chain partnered with Celo Foundation to integrate Celo as an origination chain on Orbit Bridge. This means that Celo users can now bridge tokens directly from the Celo chain to other chains connected to Orbit Bridge. This connectivity started off with Klaytn and Orbit Chain and includes in the future other Orbit Bridge connected chains like Ethereum, BSC, HECO, and Polygon. The first set of Celo tokens supported by Orbit Bridge is CELO and cUSD.

Orbit Chain x Alameda Research

In June 2021, Orbit Chain received a strategic investment from Alameda Research to expand the reach of their proprietary cross-chain DeFi technology from South Korea to the global blockchain market. T.K. Park, CEO of Ozys and the Orbit family of products, said:

We are excited for the new advancements that will be made possible in the field of DeFi as a result of this partnership.

Ozys x Polygon

In May 2021, Ozys announced a new partnership with Polygon, a protocol and a framework for building and connecting Ethereum-compatible blockchain networks. Through this partnership, Ozys worked with Polygon to expand and develop their growing DeFi ecosystem by leveraging Ozys’ focus on cross-chain interoperability. [27]

Ozys x HECO

In May 2021, Ozys announced a new partnership with HECO Chain (HECO), the first product launched by the Huobi Open Platform. Through this partnership, Ozys worked with HECO to expand and develop their growing DeFi ecosystem by leveraging Ozys’ focus on cross-chain interoperability.

Orbit Chain x Genesis Block Ventures

In April 2021, Genesis Block Ventures (GBV) announced a strategic partnership with Orbit Chain. With a mission of building the future through blockchain technology, Genesis Block Ventures supported the development of the decentralized inter-blockchain protocol and ran a validator node on Orbit Chain. Additionally, GBV became the key partner in bringing Orbit Chain to the global blockchain ecosystem.

Timeline

May 2020

  • Additional protocol for DeFi developed and instated
  • 8-10 Dapp development projects secured
  • Another Mainnet connected to Orbit Chain
February 2020
  • Orbit Chain Mainnet launched
  • Instant Swap-based DEX protocol launched
  • Another Mainnet connected to Orbit Chain
November 2019

  • Whitepaper released
  • Decentralized token swap service utilizing IBC launched
August 2019
  • Lightpaper released
  • Decentralized Governance tool launched
  • Developer-friendly Testnet ‘Avocado’ launched
  • Terra & Klaytn Mainnetㄴs connected
May 2019
  • Official introduction of Orbit Chain
  • Introduction of Orbit Chain technology, and its structure
  • Introduction of major Validator partners, and staking begins
  • XRP Mainnet connected

Patents

Further reading

Title
Author
Link
Type
Date

Completion of Orbit Bridge Audit by Theori - Orbit Chain - Medium

OrbitChain

Web

September 10, 2021

Orbit Chain - Medium

Web

January 26, 2022

Orbit Chain Explorer

Web

Orbit Chain: Connecting the Unconnected

Web

Welcoming a New Validator: Ahnlab - Orbit Chain - Medium

OrbitChain

Web

March 23, 2022

Documentaries, videos and podcasts

Title
Date
Link

Get to know Crypto ORC Coin Orbit Chain

March 27, 2022

How to use Orbit bridge - Cryptosetups Tutorial

January 9, 2021

Orbit Bridge Tutorial (Swap Multiple Assets Fast & Easy)

September 11, 2021

Orbit Bridge Tutorial (Swap Multiple Assets Fast & Easy)

September 11, 2021

Orbit Chain (ORC) Gets Listed on KuCoin! || Complete details about Orbit chain || Orbit Chain

December 21, 2021

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