📄 Venom Whitepaper

Venom Blockchain project has released its Whitepaper, detailing the company's technological solutions and development plans.

The Whitepaper, which was presented to the public on March 17, is a detailed guide on how Venom Blockchain works.

📌 The Venom Whitepaper highlights:

➕Virtual Machine
➕Dynamic Sharding
➕Security, scalability
➕Consensus protocol
➕Governing Principles, Roadmap
➕The Venom Ecosystem
➕Targeted marketplace and CBDC stablecoin

By addressing existing limitations in the crypto industry, such as scalability, security and cross-chain compatibility, Venom creates the conditions for a more reliable, user-friendly and efficient financial ecosystem.

🗂 Follow our posts: for your convenience, we will gradually take apart each section of the Venom Whitepaper and describe its most interesting points in clear language.

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📄 Venom Whitepaper: Chapter 3

As promised, we reveal the sections of the Whitepaper step by step for you.

➕Venom blockchain is designed as an open platform for developers to create and deploy their workchains to the Venom ecosystem.

➕The masterchain serves as the backbone of the Venom blockchain, providing a high level of security for all workchains connected to it.

➕Workchains are specialized layer-1 blockchains that, on the one hand, can work independently and have their virtual machine, transaction or block structures, and native token. On the other hand, they have the property of interoperability that allows transferring assets between workchains. It is able to meet a wide range of blockchain use cases, such as CBDC andDeFi, NFT, and GameFi.

➕At launch, The Venom blockchain consists of two networks: the Masterchain and the Basechain. The Basechain is the first layer-1 workchain for end-users, supporting dApps and serving as the platform for executing smart contracts.

➕Both networks employ the Threaded Virtual Machine (TVM) for smart contract execution.

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Venom Whitepaper: Chapter 1 Review 🐍

"By launching the Venom blockchain, we aim to create a safe place for everyone to build their blockchain-based solutions and conduct transactions securely and efficciently" — Venom Whitepaper, Chapter 1.

🪟 Scalability

This is especially important for public blockchains such as the Venom blockchain, which must simultaneously process transactions from many actors. The Venom blockchain has an impressive ability for vertical scalability through its use of the Dynamic Sharing Protocol and parallel execution of transactions between groups of validators. Furthermore, workchains enable the creation of separate blockchains for various Apps.

🛡 Security

Security in the Venom blockchain is ensured through the use of a PoS consensus based on the Byzantine consensus algorithm. Smart contracts, being self-executing and autonomous, require thorough auditing to ensure accuracy and security. Venom blockchain cooperates with leading audit companies and provides the opportunity to research and train engineers to audit a smart contract code.

🗒 Regulation

Venom Foundation is committed to the widespread adoption of blockchain technology, providing a secure environment for various users, including retail customers, institutions and sovereign nations. The ultimate objective is to transform the blockchain into a decentralized public platform accessible to everyone.

📍 Adoption

The Venom blackchain is able to involve a mass consumer in the market by offering core services, including payment systems, CBDCs, stablecoins, and registry solutions using the strengths of regulation and decentralization at the same time.

🚪 Interoperability

To solve the interoperability issue, the Venom blockchain uses a cross-chain communication protocol. This allows for the exchange of data, assets, and value between workchains in the ecosystem without third-party bridges.

🍔 Go to the Venom Whitepaper

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Venom Whitepaper: Dynamic Sharding Protocol 🐍

🟢The key feature of the Venom blockchain is the dynamic sharding protocol, which allows you to adjust the number and size of «shards» — small streams of computation used to process smart contracts, according to the current network load

🟢Unlike traditional database partitioning, where data is distributed across multiple machines, in Venom partitioning computation keeps the data set common to all shard validators, but each validator performs different computation threads

🟢The Venom blockchain implements «shardchains» — small parts of the blockchain responsible for processing transactions for specific subsets of accounts defined by a binary prefix

🟢First, all transactions are processed by a single group of validators within a single shardchain. But as the volume of transactions increases and the shardchain becomes overloaded, the network initiates a split event, splitting the shardchain into two. If necessary, this process can be repeated again to evenly distribute the load

🟢It allows participants to better prepare for upcoming changes and make necessary adjustments, and use resources more efficiently, processing transactions in parallel while maintaining security

🟢If the workload is reduced, a merge event is invoked to merge the shardchain into one. It allows the system to reduce the number of shardchains based on the current load, improving network efficiency and reducing the cost associated with maintaining multiple shardchains

🟢The split event occurs if the shardchain blocks are 90% full within 100 seconds. Merge — if the total size of two blocks from two shardchains does not exceed 60% of the maximum block size within 100 seconds. These values can be set in the masterchain configuration

🟢In general, dynamic sharding is a unique solution to handle a large number of transactions and effectively manage the increased load on the system, which ultimately increases the efficiency and scalability of the entire blockchain

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Venom Whitepaper: Consensus Protocol 🐍

🟢In distributed systems, the consensus protocol ensures security and agreement between participants on the current state of the network as well as the inclusion of transactions in the blockchain

🟢The Venom blockchain uses the Proof of Stake (PoS) consensus mechanism with Byzantine Fault Tolerant Algorithm (BFT)

🟢The validator keeps the network secure by placing its VENOM tokens and committing to be in consensus with other validators

🟢Participants in the network with minimal VENOM can participate in the validation process thanks to delegated stacking pools

🟢There are three types of validator sets: overall (sorting by validator weight), masterchain (sorting by largest stake), shardchain (choosing a group of validators to be responsible for processing blocks for a particular shardchain)

🟢The consensus protocol uses a circular role transfer system, which prevents one group from monopolizing the consensus

🟢The consensus protocol goes through a series of rounds that include offering, validating, and accepting blocks; 2/3 validator approval leads to commitment

🟢The consensus protocol has deterministic finality, which minimizes the occurrence of forks

🟢The consensus protocol includes several different components, such as election of the overall validator set, block creation and verification, a reaching consensus, message passing protocol between validators

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Venom Whitepaper: Virtual Machine 🐍

TVM is used to execute smart-contract code in the masterchain and basechain. Other workchains on the Venom blockchain may use other virtual machines. By design, TVM has an asynchronous model of communication between accounts. Each account can only affect the state of another account only by sending a message.

🔑 Account

Every account is a smart contract which code which can include any authentication logic necessary to verify a user’s identity.

Account structure is composed of three main components: Address, StorageState (contains information about the amount of contract data and is used to the fee calculation), and Account Storage (contains information about the balance and current status of the account).

A smart contract can be deployed by sending an external message containing the code and initial data of a future account to the network.

🔃 Messages

An account of the Venom blockchain like the actor has a unique address, can send and receive messages, change its state, change its behavior and even spawn other accounts.

External Inbound messages are sent from external actors to internal actors.
Example: Oracle send a price rate to a smart contract. Another one is The user with a keypair sends a message to the wallet account to transfer founds.

Internal Inbound/Outbond messages are sent between internal actors (accounts) within the blockchain.
Example: As a result of the external inbound message, the wallet account changes its balance and wends an internal message to the other wallet account.

External Outbound messages ("events") are produced by internal actors and can be subscribed by external actors.
Example: The wallet account emits the event about receiving funds, and the external service catches it.

📶 Transactions

A transaction is a direct result of the processing of exactly one inbound message by a recipient account code.

It’s a multi-step process of several distinct phases each with its specific purpose. Each phase is a logical step in the message execution and may either complete successfully or result in an error. If an error occurs, the next stage not be executed.

🔗 Learn the Virtual machine section in detail in the Venom Whitepaper

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Venom Whitepaper: Threaded solidity (T-Sol) 🐍

Threaded Solidity (T-Sol) is an asynchronous dialect of the Solidity programming language specifically designed for the Actor Model of the TVM platform.

The Actor Model is based on the principles of asynchronous programming, allowing programs to perform other tasks while waiting for input or output operations to complete.

▶️Unlike the traditional Solidity used in EVM-like blockchains, T-Sol provides built-in support for concurrency. It enables non-blocking and concurrent execution of calls to accounts in the Venom blockchain, which consists of shards.

▶️T-Sol offers various features to support the Actor Model, such as access control, state management and isolation, message passing, actor management and interoperability.

Using the familiar Solidity syntax and widespread adoption among developers, the T-Sol dialect has become a handy tool for creating smart contracts and actor models in a TVM environment.

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Venom Whitepaper: Ecosystem 🍔

The Venom Foundation is a non-profit organization responsible for managing the development of the Venom blockchain and promoting its adoption. It seeks to bring new life to the Everscale-born technologies and core concepts by combining them with intelligent management and compliance.

The Venom blockchain is a community-driven network that empowers its participants: users, validators, and developers.

The Venom Ecosystem

Venom blockchain offers a comprehensive ecosystem that includes various tools and services: Venom Wallet, Venom Scanner, Venom Pools for staking, Venom Bridge.

All of these products were developed by third-party teams participating in the Developer Program.

The Venom token

The VENOM token is the primary currency used within the Venom blockchain. It is designed to act as a utility token.

The Venom blockchain has an inflationary model, meaning no fixed maximum supply of tokens exists. However the Venom Foundation is exploring ways to transition to a deflationary model.

The initial token supply for issue during the mainnet launch is 7,2 bn VENOM with 84,5% under lock.

Cross-chain communications
 
By using a cross-chain communication protocol for heterogeneous chains, the Venom blockchain can maintain interoperability between public and private networks, which opens up the possiblity of creating powerful user cases:
 
🛑Public-to-Public workchains are open for communication with each other and can maintain shared liquidity in
🛑Private-to-Private workchains are suitable for CBDC and crypto payments where privacy and compliance are essential
🛑Public-to-Private workchains enable the creation of a system where two types of assets are strongly connected

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Venom Whitepaper: The Target Market 🐍

The eighth chapter of the whitepaper describes the target market for Venom blockchain, with specific examples of its use in various financial sectors. Here are the key takeaways:

🔵2022 showed that cryptocurrency market failures were most often caused by poor auditing practices of public blockchain platforms, mismanagement of funds, and all sorts of fraudulent practices

🔵In this regard, finding a balance between transparency and innovation of public blockchains, as well as the DeFi-ecosystem, and the stability of regulated markets is an effective solution

🔵The developers of Venom believe their blockchain can strike such a balance, as their product offers unique features such as account abstraction, cross-chain communications, «invisible» gas fees when dealing with Central Bank Digital Currency (CBDC)

🔵Proof of reserve (PoR) is a mechanism used to verify that a trading platform or cryptocurrency company has the assets it claims

🔵In order to create a robust PoR mechanism, Venom Foundation offers a heterogeneous multi-blockchain model that combines private and public blockchain features

🔵If regulatory requirements are met, Venom's private workchains can be used for CBDC issuance

🔵Due to interoperability, CBDCs can be used as collateral for stablecoins in Venom's public workchains

🔵Venom technologies can significantly improve processes in the trade finance industry by combining the benefits of public and private blockchains, implementing CBDCs and proof of reserve mechanisms

🔵Venom's partnerships with payment systems, exchanges and financial institutions will allow them to create a more secure and transparent environment for financial transactions

🔵The Venom Team recognizes that target markets are not limited to specific examples from the document, so encourages community members to share their ideas and experiences, collaborate and create products that can benefit everyone

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Venom Whitepaper: Governance 🐍

The ninth chapter of the whitepaper describes Venom's blockchain Governance mechanism, as well as the role of the Venom Foundation in overseeing decision-making and providing resources for network development.

Here are the key takeaways:

🔵Venom's blockchain Governance mechanism aims to ensure the network is sustainable and successful in a changing economy

🔵The Venom Foundation oversees the decision-making process and supports the development of the ecosystem

🔵While the Venom Foundation has significant input into the governance of the network, a broad range of participants are expected to have a say in the decision-making process: users, validators, and developers

🔵Through an on-chain voting and proposal system, network participants can make decisions about upgrades, new features, and overall improvement of the network

🔵The governance aims to maintain and update the blockchain transparently, effectively, and securely

🔵Infrastructure governance involves raising proposals and voting by community members proportional to their contribution to network security and stability

🔵Resources governance involves the distribution of funds/assets/resources among contributors to the network's development

🔵The Venom Foundation grants support the expansion of the ecosystem with new products and services

🔵The Bug Bounty Program incentivizes security researchers and developers to identify and report vulnerabilities in the network

🔵Rewards in the program are based on the severity of vulnerabilities and the quality of reports

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