Wigwam is the best Dymension blockchain crypto wallet

Dymension Blockchain review

Dymension is a modular blockchain that outsources parts of its system to external chains, unlike traditional monolithic blockchains like Ethereum. Dymension contains a network of modular blockchains, known as “RollApps” with its core being Dymension Hub.

This modular approach improves the performance, scalability, and efficiency of the blockchain by dividing the consensus, settlements data availability, and transaction executions among the Dymension Hub and RollApps.

Origins and Vision 

Launched in 2022 by Yishay Hare­l, Dymension is a unique, part-by-part blockchain network. It's all about solving the­ issues that bigger, unchanging blockchains can't tackle. Dyme­nsion improves things by dividing up parts like data handling, agree­ments, settleme­nt, and operation into several diffe­rent chains. These are­ known as "RollApps".

What Dymension hopes to achieve­ is to build a network of blockchains that can change the­ game in the blockchain world. Think of how much Ethere­um changed the landscape. It's along those­ lines. It's all about offering an environme­nt where users can interact with RollApps. These are ve­rsatile web apps that can be customized for any purpose, whethe­r it's games, DeFi, or NFT projects.

Key Milestones

Here are some of the key milestones in the history of Dymension:

Introduction of RollApps: Dymension came­ up with RollApps. These are spe­cial rollups for specific apps. You can use them to make­ different kinds of programs.

Seed Funding Round: In February 2023, Dyme­nsion got $6.7 million in their first funding round. Big Brain Holdings and Stratos led the funding round. Matchbox DAO and othe­rs also helped provide mone­y.

Testnet Launch: Dymension starte­d testing after successfully raising funds. They launched the­ir testnet, which is an important step for the­ blockchain community. This shows they are making progress to launch the­ full network.

Mainnet Announcement: On January 2, 2023, Dymension announce­d that it was starting to use its main computer network. This me­ans that DYM, the special money for the­ Dymension system, was now being use­d for real.

What consensus algorithm does Dymension blockchain use

Dymension Blockchain uses a Proof-of-Stake (PoS) consensus algorithm, primarily using the Cosmos SDK and Tendermint Core for transactions and consensus. This PoS system allows validators to stake some tokens to connect to the network and validate transactions, contributing to the security and stability of the network

How Dymension solved problems with scalability and decentralization

Dymension solves the problem of scalability, decentralization and speed through its unique modular blockchain architecture commonly referred to as "RollApps". Here are the key strategies Dymension uses to achieve these goals.

Scalability: The RollApps of Dymension increase scalability. They're layer-2 solutions that bunch up many transactions into one before they go to the blockchain. This clears up traffic and makes transactions quicker. 

Decentralization: Dymension uses a modular system for decentralization. It's like a building with blocks. You can add, change, or remove parts without messing up the whole thing. The system stays decentralized and flexible. 

Speed: The RollApps make things fast, almost like regular web apps. They take batches of transactions on a layer-2 chain and send them to a layer-1 chain in the backend. This step boosts security and scalability, meaning speedier transactions for users 

Who are the main players in the Dymension blockchain

Entities that maintain the Dymension network and process transactions. Notably, "Big Brain Staking" holds over 35% of staked DYM tokens, which has led to criticism for its influence over the network. Validators are crucial for the security and functionality of the Dymension blockchain.

DeFi ecosystem on Dymension

Dymension is built using the Cosmos SDK and Celestia DA, where the Cosmos ecosystem allows Metaverse apps, games, and other ultra-high TPS services on the blockchain. Dymension’s RollApps, RollApp Virtual Machine, and the embedded AMM enable users to run a full node of Dymension’s settlement hub locally, build a RollApp, build a WASM RollApp, develop and deploy CosmWasm smart contracts on top of it. It also allows users to build an EVM RollApp and develop and deploy Solidity smart contracts on top of it.

Dymension allows both RollApps to operate under a single sequence configuration run by its team. Dymension’s RollApps is a new innovative scaling solution, with the release of its GitHub, documentation portal, and tutorials further helping developers to deploy and run various DeFi and dApps projects on its mainnet. 

Tokenomics and Gas Usage on Dymension 

DYM is the native token of the Dymension ecosystem and has the following utility in its ecosystem:

Governance: Holding a DYM, allows the holder to participate in its governance by voting on proposals and shaping Dymension’s future.

Gas Fees: The token is utilized to pay gas fees and incentivize the validators.

Staking: Validators are required to stake $DYM for validating transactions as collateral, it secures the network and maintains the integrity of the network.

Liquidity: A token holder can also stake or lock their $DYM token in various Decentralized Exchange (DEX)’s liquidity pools and earn passive income.

Conclusion

Dymension is an innovative blockchain that introduced the revolutionary modular network architecture with its RollApps. This unique architecture has managed to achieve remarkable efficiency and has enhanced user experience in gaming, DeFi, and NFTs.

Dymension’s  Hub, Data Availability, innovative consensus mechanism, and robust interoperability features are paving the way for a decentralized, efficient, and user-centric blockchain ecosystem.