What is Venom?

Venom is a Turing-complete Proof of Stake (PoS) blockchain network, developed and maintained by the Venom Foundation. The Fund is the first organization registered in the Abu Dhabi Global Market (ADGM) in the UAE and licensed to operate blockchain and issue utility tokens.

Turing-complete means Venom can store self-executing scripts (called smart contracts) similar to Ethereum (ETH). This, in turn, allows Venom to run and host Web3 applications in a variety of verticals, including decentralized finance (DeFi), decentralized autonomous organization (DAO), and gaming space (GameFi). )…

Venom's mission is to be the infrastructure for the next generation of digital products and services. As the popularity of blockchain technology increases, the challenges that most protocols are facing become apparent, such as:

  • Scaling in real time: most blockchain solutions cannot handle growing workloads which limits usage.

  • Security and stability: blockchain protocols are designed to facilitate the transfer of value. It is essential for protocol developers to ensure system security and attract enough validators and incentivize appropriate behavior to protect decentralized networks.

  • Fee structure: decentralized networks must be cheap enough to attract users while ensuring the provision of sustainable services.

Venom claims to solve these challenges by using an innovative heterogeneous blockchain architecture (a chain with multiple layers and components that operate asynchronously) that involves dynamic sharding to create a multi-layered platform. Blockchain is ideal for business and individual users. Venom is designed to be highly scalable, decentralized, and cost-effective.

Venom's architecture

Venom uses a heterogeneous multi-blockchain architecture approach to solve the challenge of scalability while reducing transaction fees. Those three layers include:

  • Masterchain: Masterchain is also known as the base layer or Layer 0, which is the backbone of Venom. The main functions of this layer are:

    • Provides high-level security for Workchains

    • Stores network configuration settings

    • Holds information about validators, their stakes, and voting rounds

    • Store block proof data from all Workchains.

  • Workchains: Workchains are specialized layer 1 blockchains that can be used to serve different purposes. This open-ended nature of Workchains makes them capable of supporting a wide range of applications, from DeFi applications to GameFi and the Metaverse ecosystem.

  • Shardchains: Shardchains are constituent parts or partitions of the blockchain that contain information about a subset of accounts running on the main chain. Sharding has been found to be a scalable solution for decentralized networks that allows for parallel transaction processing as each shard has its own set of validators that work simultaneously on a group of transactions. With Venom, there was initially a single shardchain responsible for processing all transactions. However, if and when it experiences higher than average workloads, there will be automatic shard splitting and transactions will be split between two new shard chains.

The three layers support parallel transaction processing, which is why Venom can process between 100,000 and 1 million transactions per second (TPS).

Key features of Venom

There are three core features of Venom, which are:

  • Dynamic sharding: is a way for the blockchain to increase the number of shards or chains of shards used to process transactions in parallel. Initially, it starts with a single shard, but the number will increase or decrease according to network needs, up to a maximum of 2^60 shards.

  • Hybrid consensus mechanism: Venom uses a consensus mechanism approach that combines Proof of Stake (PoS) algorithm and Byzantine fault tolerance (BFT). With PoS, transaction validators are required to stake a portion of their assets to participate. The higher the stake, the higher the probability that the validator will create the next block. The BFT algorithm ensures that validators agree on the true version of Venom after one round of voting. For this to happen, at least two-thirds of the validators need to agree. The use of both PoS and BFT consensus algorithms also speeds up transaction validation and contributes to fast network verification.

  • Asynchronous Architecture: Asynchronous means a system is made up of many different components that allow uncoordinated communication. In the case of Venom, the three core components – Masterchain, Workchains and Shardchains can operate independently of each other but simultaneously, making transactions faster, cheaper and more efficient.

Venom Ecosystem

The Venom ecosystem is a set of tools and services designed to enhance the user experience as they navigate and take advantage of the available features of Venom.

  • Venom Wallet: a non-custodial cryptocurrency wallet to store digital assets native to Venom, such as VENOM tokens, NFTs, and other custom tokens. Other functions are sending and receiving tokens, accessing the Web3 market, swapping...

  • Venom Bridge: is a dApp that facilitates the exchange of tokens from one blockchain to another. Venom Bridge supports such swaps between Venom, Fantom (FTM), BNB Chain (BSC) and Ethereum networks.

  • Venom Pools: validators wanting to verify transactions on Venom will use the Pools feature to stake their VENOM, redeem rewards, and participate in other governance activities.

  • Web3World: this is a decentralized exchange (DEX) based on the automated market maker (AMM) model to source liquidity and offer the widest range of swap pairs with high liquidity possible.

  • Venom Scanner: is a discovery service that allows users to monitor transactions, fee trends, and other important metrics related to the network.

  • Oasis Gallery: this is the first NFT marketplace on Venom that supports NFTs natively created on Venom. Users can browse, buy, sell and trade these digital assets here when it launches.

Tokenomics

Venom has a native platform cryptocurrency called VENOM, which is the value transfer engine in the Venom ecosystem.

VENOM is currently in inflation, with an initial market supply of 7.2 billion tokens. The document shows that the Fund plans to change its supply metrics and move to a deflationary model in the future after achieving certain key metrics, including adoption, volume and utility. useful.

Token utility

  • Pay transaction fees

  • Governance through PoS consensus mechanism

  • Incentivize validators to participate in transaction verification to receive rewards

  • Enhance network security through attracting enough authenticators

Allocation and vesting

Roadmap

Phase 0: PoA Launch (April 2023)

Users start creating accounts, holding and trading tokens, staking and claiming validators, deploying smart contracts, interacting with the Venom ecosystem.

Phase 1: State conversion from PoA to PoS

  • Users are allowed to delegate staking to validators.

  • Participate in the developer funding program.

  • Suggest and vote for network upgrades.

Phase 2: Workchains and scalability

  • Create custom workchains based on the framework.

  • Take advantage of cross-workchain connection protocols.

Team

Venom is being led by:

  • Kheriba is the Executive Chairman of Iceberg Capital, and also the Executive Chairman of multilateral exchange and digital asset custodian VENOMEX.

  • Dr. Steck is the managing attorney of Pontinova Circle Investment Group and has extensive expertise in fintech.

  • Sultan is the CEO of Emirates Integrated Telecommunications Company (du) and a thought leader in the field of connectivity and technology innovation.

  • Peter Knez, PhD, former Global Chief Investment Officer at BlackRock and founder of Knex Ventures

  • Shahal M. Khan, founder of Burkhan World, Trinity Hospitality Holdings and CEO of Burtech.