Since the initial proposal that came with Analog Timepaper in 2022, our team has made significant improvements to the Analog tech stack. These updates were discussed internally and incorporated into the source code. Unfortunately, due to a backlog, we haven’t yet shared these updates with you.
Today, we’re excited to announce Analog 2.0, a set of updates that demonstrate Analog’s journey towards a secure and seamless interoperability future. Analog 2.0 enables developers to build decentralized applications (DApps) that manage complex interactions and assets on behalf of users, unlocking new potential use cases in multi-chain and cross-chain environments.
The post articulates the vision for Analog 2.0, a one-stop interoperability hub for the multi-chain and cross-chain ecosystems. It explores the current state of the Analog protocol and what it will take to realize this vision.
Two years ago, Analog proposed the Timechain , a sovereign blockchain specifically designed for interoperability. Powered by a Proof-of-Time (PoT) consensus mechanism, the Timechain would serve as an abstracting layer for connected blockchains, assets, and data, providing a converged environment that is ideal for the development of DApps in multi-chain and cross-chain environments.
We resolved to ensure that the Timechain should be as decentralized and secure as possible after observing that a significant number of hacks in the Web3 space from 2020 to 2022 were linked to cross-chain bridges. That is why, early in our development, we explored various consensus protocols, including Proof-of-Stake (PoS) and their variations, as well as Proof-of-Work (PoW).
We found that these protocols didn’t address this issue to our satisfaction. A consensus protocol like PoT best meets these requirements since it eliminates barriers to entry and ensures equal opportunities for all nodes.
However, building a PoT-enabled Timechain from scratch would have been too complex and time-consuming. This is why we considered a pre-built open-source SDK (i.e., Substrate SDK) because of the framework’s modularity and other features like forkless upgrades.
Although the Timechain is currently built atop the Substrate SDK, utilizing the Nominated Proof-of-Stake(NPoS) consensus algorithm, it is designed from the ground up to provide simple, seamless, and secure multi-chain/cross-chain functionalities.
Our thesis has stood the test of time, especially as blockchains and assets proliferate in the Web3 space. The rise of rollups and modular blockchains emphasizes the need for secure, seamless interoperability. For example, when we started, Ethereum held $110 billion in DeFi TVL, but now it only holds $47 billion, a significant 57% decrease. This decline is due to stiff competition from emerging blockchains like Solana, BNB Chain, Avalanche, and others that continue to proliferate.
Reflecting on the past, the Analog team has since expanded from less than 10 members at inception to a 30+ member team and raised over $16 million in funding in the early stage round. We’ve successfully closed over 20 Launch Partners Program deals, attracted 50+ builders to join us by mainnet launch, and secured support from industry leaders like Outliers, Tribe Capital, Orange DAO, and Wintermute.
Be among the first to experience Analog’s Timechain and the tools that power up the next generation of omnichain DApps.
Analog Incentivized Testnet launched in April 2024. The network is live on Ethereum, Astar, Polygon, Arbitrum, and BNB Chain. We plan to extend support for other blockchains, including Avalanche, Solana, TON, etc. The Incentivized Testnet is a gamified testing phase where developers, node operators, and community members participate in rigorous testing of the prototype services, such as Analog Watch and Analog GMP, and earn rewards in return.
Since its inception, Analog has generated over 300,000 unique accounts and 1000+ potential validators. The ecosystem comprises over 200 developers and partners working across different protocol services in DeFi, NFTs, Gaming, SocialFi, and more, with over 250,000 smart contracts deployed.
In October 2023, we unveiled the Grant Program to provide financial support to promising projects and community members within the Analog ecosystem. The program offers awards of up to $50,000 in either stablecoins or ANLOG (Analog’s native token). Exceptional projects in the interop space are eligible for even more funding.
Analog 2.0 is a series of upgrades that extend the Analog tech stack with a vision of becoming an all-in-one interop hub for multi-chain and cross-chain ecosystems. We’ve implemented some of these updates, while others remain to be rolled out.
An overview of Analog 2.0 TL;DR:
NPoS-powered Timechain allows validators and nominators to stake ANLOG into the protocol and earn rewards for securing the network.
Timechain offers built-in connectivity with external blockchains via a Threshold Signature Schemes (TSS) module that allows validators (i.e., Chronicle Nodes) to monitor and interact with external blockchains.
Analog Watch’s indexing capabilities make Web3 data instantly and securely accessible over a GraphQL API, enabling developers to build and ship their DApps faster.
Analog GMP’s cross-chain messaging capabilities tallow developers to build DApps that abstract more complex and multi-step transactions across chains, enhancing end-user UX.
Let’s delve into a detailed overview of these key features.
Timechain
The Timechain, a sovereign blockchain powered by the NPoS consensus mechanism, serves as a core ledger for all the Analog activities—essentially functioning as an Accountability Layer. ANLOG is a native token that secures the Timechain. Validators stake ANLOG, and users can nominate/delegate ANLOG to validators, earning block emissions in return.
Check out our docs to learn more about node operators, and this blog post to learn more about PoT.
Although currently built on top of the Substrate SDK and leverages some of the Substrate’s features, like on-chain upgrades and modularity, the Timechain remains an independent blockchain. In the future, we plan to transition its consensus protocol from NPoS to PoT.
The Timechain provides built-in connectivity to external blockchains through TSS. Chronicle Nodes, responsible for attesting to cross-chain requests, maintain keys that authorize every cross-chain transaction on the network.
To promote optimal scalability throughout its interoperable ecosystem, Analog leverages a sharding mechanism, where multiple Chronicle Nodes connected to the same external chain constitute a shard on the Timechain. The Timechain determines the size of the shard. Upon shard formation, it can initiate interactions with external chains. To participate in shards, Chronicle Nodes effectively loan out their assets through a locking mechanism (i.e., Shard Security Deposit).
The TSS feature, alongside core upgrades like key rotations, multiplies the security and utility of the Analog while providing integration with external blockchains. Although Analog is currently running the Chronicle Nodes services internally, there are plans to make these services as decentralized as possible.
Web3 data indexing
Analog Watch has already positioned itself in the Web3 data marketplace as the most flexible, low-code, developer-friendly, and multi-chain indexing solution, as demonstrated by the number of smart contracts and Views deployed on the testnet.
Currently, Analog Watch allows anyone to extract and query data from supported chains fast and at zero cost, but it uses a centralized approach.
In the longer term, Analog intends to provide the same scalable and performant solution but in a way that minimizes trust and is verifiable. Check out our docs to learn more.
General Message Passing (GMP)
Analog GMP enables composable multi-leg transactions across different blockchains. The protocol leverages the Timechain for secure messaging, allowing smart contracts on various chains to interact seamlessly. This cross-chain smart contract execution framework empowers DApps to abstract complex multi-leg interactions, including asset movements.
For example, a user on BNB Chain can trigger a contract on Ethereum, which can then orchestrate function calls on Astar and other chains, all in a single transaction. Check out our docs to learn more.
It is worth highlighting that gas payments for cross-chain transactions can be complex, as users need to pay in multiple tokens on the underlying blockchains.
In addition, users often overpay because they need to estimate the gas required for the transaction. Analog GMP abstracts and simplifies these complexities by allowing DApp users to pay gas fees in native currency on the source chain. The protocol handles the cross-chain backend, ensuring transactions are executed on the destination chains. Analog GMP also features gas optimization strategies that minimize cross-chain gas consumption.
You can learn more about gas optimization mechanisms here.
Chain support
Analog’s architecture is chain-agnostic by design and enables new chain integrations in the EVM, Polkadot, Cosmos, and other emerging ecosystems. Analog currently provides support for the following chains:
Ethereum
Astar
Polygon
Arbitrum
BNB Chain
In the long term, we plan to extend support for other blockchains in the Polkadot and Cosmos ecosystems, as well as Solana and TON.
We are actively developing repositories for various protocol services in preparation for the mainnet launch. Post-Analog 2.0 mainnet, the entire ecosystem network participants and contributors will drive new protocol features and upgrades under these key areas:
Chain integrations
Our primary objective is to expand the ecosystem by onboarding a wider range of blockchain networks. To achieve this, we are enhancing the architecture and framework for seamlessly integrating new chains. We have successfully integrated EVM-compatible chains such as Astar, Polygon, and BNB Chain. We are also actively working on supporting chains in the Polkadot and Cosmos ecosystems, as well as emerging blockchains like Solana and TON.
DApp integrations
As stated earlier, we aim to create a more vibrant and versatile ecosystem where developers can build applications for multi-chain and cross-chain environments. Projects like Zenswap and PixelPort are already using Analog GMP to build various products in the interop space. In the long term, we plan to enhance Analog infrastructure to allow developers to compose and interoperate their applications in any blockchain ecosystem in a secure and seamless manner.
Decentralization and security
To enhance the trust model and security of the Analog, we plan to decentralize the Chronicle Nodes network layer. By introducing incentives and penalties, we aim to mitigate the risk of single points of failure and bolster the protocol’s overall trustworthiness.
Analog has always aimed to unify blockchain ecosystems, beginning with the publication of the initial Timepaper. Analog 2.0 represents a major step toward this goal, with significant upgrades to the Analog tech stack that enable novel interoperability use cases.
Developers can now build multi-chain/cross-chain DApps that seamlessly manage user assets and execute multi-step transactions in a few clicks. These updates make crypto more accessible to users, regardless of their blockchain preferences or experience level.
Want to join the Analog conversation? Follow us on X @OneAnalog and join our Discord and Telegram channels.
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