We are in the age of Web3 and metaverse. Public blockchains such as Ethereum are at the heart of the Web3 infrastructure. Good designs of blockchains need to balance decentralization, security and scalability. This is extremely challenging and known as the blockchain Trilemma. An additional feature is composability, which is essential for the expansion of DeFi and GameFi applications. However, the composability (such as the DeFi Legos) brings additional, hard to quantify risks as well as advantages. This is attested by the recent cascade of liquidations on crypto assets, including the Terra-Luna system. In DeFi systems, high leverage exacerbates volatility leads to sharp drops in token prices and massive liquidations during market downturn, as we are witnessing now. It is very timely to develop new kinds of blockchain system which benefits from the existing technology and address the new challenges and risks. Robustness is a top concern for the new public blockchain system design.
We consider a new generation of blockchain as Turing-complete, distributed state machine with built in consensus mechanism. It registers in a temper proof way transactions, which are just transitions between computational states. Computational resources are provided by, used for, allocated among and paid by the participants in the system.
ETM (Eonothem) is a Delegated Proof of Stake consensus public blockchain, adapted to high output scenario of Web3 applications and efficient high frequency decentralized finance. With EVM compatible structural design, smart contract can be easily and securely deployed in the ETM/P system. This gives ETM high scalability and composability. The consensus mechanism is based on the Byzantine fault tolerant consensus (Istanbul) with enhanced features. Delegated Proof of Stake brings more efficiency in terms of operations and computational resources. In each round, only 21 nodes are selected to process and validate transactions. However, this may lead to a reduction of decentralization and malicious coalition attacks on the system. To address this problem, ETM/P uses a new permutation algorithm based on chaos factor and VRP (verifiable random permutation) to mitigate the risk of malicious nodes coalition and front running attacks. These risks have been persistently troublesome to DeFi infrastructures.
At the heart of the ETM/P economic model is sustainability. It is more important than ever before, after the Luna/UST bank run, for economic models to be robust, healthy and sustainable while still attractive to users. The ETM/P economic model achieves these objectives by using algorithmic game theory and feedback control mechanism to enforce a mild inflationary monetary policy.
We are now at the stage of "Proterozoic": building up a complete ecosystem of decentralized platforms.
We will be moving to Phanerozoic: building up ETM/P DAO (Decentralized Autonomous Organization).