Obliq Landing Page

Obliq - A Primer

Michael Brown, Jared Warn, Jiri Jetmar
October 5, 2024

Forward

Obliq is an advanced and unique blockchain system that integrates a range of established techniques to deliver a highly scalable and decentralized platform for value exchange and user interaction. Its innovation lies in unique composition and leveraging many proven technologies already deployed across multiple blockchain networks, while incorporating critical advancements from recent research. Obliq refines and optimizes both established and innovative components, structuring them within a novel and highly efficient architectural framework.

Abstract

Problem:

Current blockchain ecosystems lack interoperability and speed due to reliance on insecure bridges and inefficient atomic swaps. This hinders efficient, scalable, and seamless cross-chain transactions. Notable issues with the current ecosystems include: fragmented liquidity, increased security risks, and complicated user experiences.

Solution:

Obliq envisions the future of human interaction through the paradigm of maritime trade. Modern trade thrives on interoperability ensured by global shipping standards. Obliq seeks to create and enforce similar standards within the digital economy through the following mechanisms:

  1. Seamless Communication: The Obliq Routing Network serves as an onion-like communication protocol.

  2. Shared Security: The Obliq Lighthouse Chain acts as a hub accessible to any existing or forthcoming chains.

  3. Scalability: Obliq Floating Chains provide a system that allows any current or future chains to interact with the Lighthouse Chain.

The Practical Utility of Allegories in Blockchain

Obliq is as complex as human interaction. Due to the expansive nature of the solution, this section presents a detailed allegory of a port city to aid the reader in comprehending the more technical topics discussed in subsequent sections. This approach facilitates a better understanding of the intricate concepts that will be explored later in the paper.

It has become increasingly clear that a monolithic blockchain solution is inadequate for addressing all problem domains in finance and in general in the digital human-interaction space. The fundamental limit of blockchain scalability can be understood in terms of the trade-offs between decentralization, security, and scalability. The blockchain scalability trilemma, a concept introduced by Vitalik Buterin, encapsulates this trade-off. The trilemma posits that enhancing one of the three critical aspects—decentralization, security, or scalability—often leads to the compromise of one or both of the others. Overcoming this conceptual trilemma necessitates a fundamental shift in perspective on the underlying problem.

Consequently, a diverse range of blockchain platforms has emerged, each tailored for specific use cases. For instance, Ethereum’s constrained block space and block times result in higher transaction fees, prompting users to migrate to Layer 2 networks that offer lower fees and faster block times. Bitcoin, often regarded as “digital gold,” serves as collateral in supporting several protocols. However, Bitcoin’s relatively slow block times necessitates the use of bridging technologies. There are numerous instances of this occurring across current blockchain ecosystems. This has led to the existence of multiple disparate networks, with various tokens bridged across them, creating fragmented liquidity across different blockchains and protocols. Moreover, the use of these blockchains for rapid value exchange and market opportunity exploitation remains inefficient and cumbersome.

An apt real-world allegory to the current state of blockchain ecosystems can be found in port cities, which play a crucial role in global trade due to their strategic locations and specialized infrastructure. Port cities serve as vital gateways, connecting domestic markets with international supply chains by facilitating the import and export of goods. Their economic potential is largely derived from their ability to efficiently manage maritime trade through infrastructure like docks, cranes, and storage facilities, allowing for the streamlined handling of various types of cargo. Similarly, blockchain platforms could act as digital gateways for value exchange, but are currently limited by fragmented networks and the lack of specialized infrastructure to handle diverse digital assets.

Much like how ports generate revenue through fees for services such as cargo handling, blockchain networks also rely on transaction fees. Obliq aims to introduce these much-needed standards, creating a cohesive system where interoperability, like that provided by cargo containers in shipping, will enable smoother and more efficient interactions between blockchain networks. Currently blockchain systems lack a comprehensive solution to facilitate the seamless movement of digital assets across different platforms. Blockchain networks remain fractured, struggling to efficiently handle cross-network transactions and liquidity.

A unified blockchain infrastructure, analogous to a well-functioning port, could reduce inefficiencies, lower costs, and enhance the movement of assets across multiple ecosystems in real time.

Obliq’s approach to solving the fragmentation of the blockchain domain is rooted in the understanding that blockchains reflect real-world needs and collective human actions. To create a truly interconnected blockchain ecosystem, Obliq is designed to mimic the essential infrastructure of the real world, particularly that of port cities, which serve as hubs for trade, commerce, and efficient movement of resources. Just as blockchains with real-world use cases, such as Bitcoin, Ethereum, and USDT, have gained the most traction, Obliq will position itself as a foundational blockchain platform with practical, multi-chain applications.

To function as the “port city” of the digital world, Obliq will be built with the ability to connect multiple blockchains together, allowing for atomic transactions and seamless token transfers across chains. This interconnected structure will be supported by a Software Development Kit (SDK) and other programmatic tools that facilitate easy communication between blockchains, ensuring that developers and platforms can easily integrate with the Obliq network. Furthermore, Obliq will integrate oracles—specialized software that enables the execution of transactions across networks—further enhancing the platform’s capacity to serve as a bridge for decentralized applications.

A critical aspect of Obliq’s model is its ability to generate revenue through the collection of fees and taxes from users. This will include fees for multi-chain transactions and services such as decentralized data storage, addressing the growing demand for secure, decentralized resource management. In addition, Obliq will provide the flexibility to adapt to the rapidly changing blockchain economy, with the capability to easily add new chains as the market evolves. Obliq’s system is able to support a diverse range of use cases.

The Basic Structure of Obliq

This section provides a high-level overview of how two major structures—the Lighthouse Chain and Floating Chains—function within the Obliq model.

Obliq is a comprehensive system composed of multiple components, designed to emulate the infrastructure of a real-world port city and thereby digital human interaction at scale, enabling seamless interaction with various application chains. Obliq’s architecture allows for efficient communication between chains through its State Channel technology.

Obliq consists of two primary components:

1. The Lighthouse Chain

2. Floating Chains

The Lighthouse Chain serves as the central hub for commerce. It acts as a settlement and consensus layer for Floating Chains (or application chains) that connect to it. This provides a foundation for stability and ensures that all connected chains can securely interact with one another. Any Floating Chain can leverage the Lighthouse Chain’s modified Avalanche consensus system, to facilitate secure, reliable transactions across multiple chains.

Floating Chains are independent application chains that use the Lighthouse Chain for consensus. Any individual or organization can create a Floating Chain, customized for specific logic or use cases. By connecting to the Lighthouse Chain, Floating Chains gain access to functionality, unfragmented liquidity, and other resources available across the broader Obliq ecosystem. This modular approach allows for greater flexibility and specialization within each chain while maintaining the security and efficiency of the Lighthouse Chain’s consensus model.

Together, the Lighthouse Chain and Floating Chains form a system that can be compared to Dockerization on the blockchain. The Lighthouse Chain functions like the Docker daemon, providing core services and management, while the Floating Chains operate like containers, each tailored for specific purposes, but able to interact with the broader system through the Lighthouse Chain. This setup allows Obliq to offer a scalable and adaptable solution for multi-chain interaction.

A Quick Peek - Technical Overview

A More In-Depth Look At Obliq

Obliq State Channels

At the heart of Obliq is its ability to scale to millions of transactions per second. Obliq accomplishes this through novel advancements in state channel technology. Obliq State Channels are, in principle, similar to Bitcoin’s Lightning Network–they allow for near instantaneous transfer of funds between different parties off-chain without having to settle to a block for every transaction. However, there are several key differences between Obliq’s state channel technology and the Lightning Network.

State Channel Feature

Lightning Network

Obliq

Multiple parties can participate in a channel

No

Yes

Multiple token types can be used in a channel

No

Yes

Supports smart contract execution

No

Yes

Parties can be offline during channel participation

No

Yes

Multi-hop transactions can take place over multiple channels atomically (i.e. transactions fail safely)

No

Yes

Settle transactions within timeframes measured in milliseconds

Yes

Yes

In order to create a unified architecture between the Floating Chains, the Lighthouse Chain manages the processes of state channel creation, settlement, and administration.

At the initial launch of Obliq, the network will enable the settlement of off-chain transactions through its State Channel technology in an anonymized manner; in the future, however, it is intended to help serve and store data, thereby contributing to the creation of a truly decentralized internet. Obliq’s final vision is to allow for the creation of truly decentralized and permissionless front-ends.

Obliq Routing Network

The Obliq Routing Network functions as a service discovery system that enables decentralized and distributed communication among parties. While State Channel technology facilitates exceptionally rapid transaction speeds, it remains inherently ad-hoc. To ensure the protection of participants and establish a truly decentralized network infrastructure, a routing system analogous to that utilized by the Lightning Network is required to effectively facilitate information transfer within state channels. However, Obliq's solution generalizes pathfinding to support a wider range of functionalities beyond simple transactions. Although this technology is distinct from the Lighthouse Chain and Floating Chains, it is essential for the proper functioning of the system as a whole.

Obliq introduces a novel concept that treats trustless and decentralized application chains similar to Docker containers. In this framework, the application logic of Obliq Floating Chains is decoupled from the underlying consensus mechanism, allowing developers to focus solely on the desired behavior of their applications. This separation simplifies the process of launching a new chain, eliminating the need to gather validators, establish a validator set, or manage the complexities of producing an initial block.

Analogous to how Docker utilizes an overlay network to connect containers and enable communication over a virtual network, Obliq introduces a network that interconnects its various Floating Chains with the Lighthouse Chain. The Obliq Routing Network serves as an overlay network whose primary purpose is to facilitate anonymous transaction routing among participants across different chains. Due to Obliq's distinctive architecture, the Obliq Routing Network is essential for obscuring the physical origin of any given transaction and preventing the collection of detailed information about participants within the Obliq system.

Notably, the Obliq Routing Network will function as a separate daemon—an independent application—from the Obliq core software, known as the Lighthouse Chain, which primarily manages the Obliq consensus mechanism. Participants in the Obliq Routing Network will be incentivized with Obliq tokens, as well as duties and taxes taken from the transactions routed through the network, providing participants with motivation to continuously operate the software.

Obliq’s Lighthouse Chain

Obliq is made up of multiple components that form a platform, rather than a single blockchain. At the center of Obliq is the Lighthouse Chain. The Lighthouse Chain is a traditional blockchain with an improved Avalanche consensus mechanism. In certain circumstances, the reference implementation of the Avalanche consensus can cause a chain halt–an issue which Obliq has resolved in its implementation. Obliq’s Lighthouse Chain is also coded in Rust for additional security, speed, and reliability.

The Avalanche consensus mechanism is notable for its metastable nature, relying on probabilistic principles to determine the production of the next block. Consequently, this consensus protocol operates without a designated leader, and there is no deterministic method for predicting which participant will generate a block or the sequence in which blocks will be produced. Given that the majority of transactions within the Obliq network will occur through Obliq State Channels, coupled with the inherent unpredictability of the consensus mechanism, unfair extraction of Miner Extractable Value (MEV) becomes impractical.

The Avalanche consensus mechanism offers several additional advantages. It permits an unlimited number of validators to participate in the network, requiring only that each validator stake tokens to mitigate the risk of Sybil attacks. This structure closely resembles the operational framework of Bitcoin, where an unrestricted number of miners can join the network’s validation process, relying on probability (through hash computations, or Proof of Work) to generate new blocks. Similarly, the Avalanche consensus employs probabilistic techniques for block production; however, it achieves this in a much more energy-efficient manner by leveraging Proof of Stake (PoS). In this context, Obliq validators function analogously to miners. Unlike other consensus protocols, the Avalanche mechanism does not require slashing penalties, as any validator proposing blocks that violate network rules is simply ignored by other validators. The Avalanche consensus mechanism can thus be considered highly decentralized in comparison to traditional consensus protocols, as the presence of a large number of participating validators significantly complicates any attempts at collusion or network manipulation by any given subset of validators.

Furthermore, the Lighthouse Chain is designed to support light clients, enabling immediate connectivity to the Obliq network for real-time access to account statuses and transaction records. Consequently, this obviates the necessity for reliance on third-party entities to operate full nodes that contain the complete blockchain historical ledger on a singular system. Obliq utilizes IPFS technology with CID state replication in order to quickly propagate blocks, and retrieve current and historical state information efficiently. This allows clients to connect instantaneously, and then retrieve information from the network as needed, on demand, rather than having to front-load the entire network like a traditional blockchain. Additionally, Obliq is inherently lightweight, facilitating its operation on devices with limited computational resources, such as smartphones or IoT devices. In short, Obliq could run a full light node directly on a cellphone. Moreover, all Obliq software is compatible with both the ARM CPU architecture and standard x86 platforms, enhancing its versatility across different hardware environments.

Considering the demonstrated success of the Bitcoin model and the novel, efficient design of the Obliq platform with inherent out-of-the-box support for state channels, it is reasonable to project that Obliq is poised to become the new standard for human interactions in the blockchain domain.

Obliq - A Developer Story

Monolithic architectures cannot anticipate which applications may become popular or necessary in the future. For this reason, adopting a monolithic blockchain proves impractical for blockchain and commerce applications. Monolithic architectures inherently impose limitations on permissible operations within their frameworks. In contrast, Obliq is engineered to provide developers with maximal freedom, decentralization, and flexibility in application design. This is achieved by delegating consensus and validation logic to the Lighthouse Chain, thereby fully decoupling it from application logic. To establish a Floating Chain on the Obliq platform, the only requirements are integrating the Obliq State Channel system and registering with the Lighthouse Chain. No additional prerequisites are necessary.

A similar concept exists within the Cosmos ecosystem; however, its design differs significantly from that of Obliq. Cosmos utilizes a series of standard monolithic blockchains interconnected through the Inter-Blockchain Communication (IBC) protocol. The Cosmos SDK, a software development kit that enables the creation of new blockchains within the Cosmos ecosystem, incorporates a predefined consensus mechanism called Tendermint. Developers can create specialized application logic and launch new blockchains, but they are constrained by the limitations inherent in Tendermint. Furthermore, developers must establish their own validator sets and coordinate the launch of their chains, as each Cosmos blockchain functions as an independent monolithic chain. Notably, Cosmos chains typically do not support validator sets exceeding 100 to 200 validators, which limits decentralization. Many recent concerns have also been raised regarding the potential for validator collusion to influence Cosmos networks. Additionally, Cosmos chains are susceptible to rampant MEV.

The IBC protocol allows access to liquidity and functionality across multiple Cosmos chains; however, because each chain produces blocks like a standard blockchain, transactions involving IBC tend to be slow. In cases where there is an error or issue with a transaction using IBC, atomic transactions are often not possible, or failover does not occur cleanly. Additionally, tokens transferred across IBC from one chain to another are wrapped in a manner that complicates their utilization. Users must remember the specific path from which a token has been transferred (Chain A -> Chain B -> Chain C); otherwise, the tokens become unusable.

In contrast, Obliq effectively addresses the challenges prevalent in the Cosmos ecosystem. Firstly, Obliq Floating Chains are capable of implementing any desired logic without being constrained by a given consensus mechanism. Developers also have the flexibility to introduce their own specialized consensus protocols without restrictions, if they so desire. Additionally, the Obliq State Channel system facilitates atomic transactions that are executed rapidly and feature robust failover mechanisms. Floating Chains operate independently of block production, avoiding the application logic and block time constraints common to standard blockchain platforms.

Moreover, as the Lighthouse Chain serves as the definitive mediator and orchestrator of cross-chain transactions within Obliq, tokens can be seamlessly transferred from one chain to another without concern for their original chain of issuance or the chains through which they may have passed. The Lighthouse Chain also maintains a unified account model for further interoperability between different application chains. Seamless token transfer simplifies interactions across chains and enhances the user experience. Furthermore, developers can instantiate a Floating Chain without the need to assemble a validator set or manage the complexities associated with producing the initial block like with a traditional blockchain. This streamlined approach reduces the barriers to entry for new chain development and accelerates innovation within the Obliq ecosystem. Similarly, Obliq will provide a detailed SDK which will make it simple for a developer to launch a new Floating Chain.

Most importantly, the Obliq model eliminates fragmented liquidity by allowing each Floating Chain to access the liquidity of all others, as each Floating Chain is connected to the Lighthouse Chain.

Obliq’s layers can be thought of as an advanced blockchain operating system. While its developer suites can be thought of as a decentralized app store. Combined, the system and tools create an environment which streamlines the creation of new applications.

Example Floating Chains (Application Chains):

The following example chains illustrate potential avenues for developers aiming to build within the Obliq ecosystem.

Atomic Swaps

Obliq recognizes that certain cryptocurrencies have become standard in the industry. As such, Obliq plans on creating certain Floating Chains to help with Obliq adoption at launch. One such set of Floating Chains are atomic swaps applications. Both Bitcoin and Monero have established atomic swap protocols, which Obliq intends to adopt. By implementing these protocols, users will be able to trade Obliq tokens and receive Bitcoin and Monero directly on their native networks. Moreover, Obliq is planning to introduce atomic swap-based bridging protocols that will permit Bitcoin and Monero tokens to be used directly in Obliq's application ecosystem.

Virtual Machines

Through its Floating Chains, Obliq possesses the capability to integrate a diverse array of blockchain applications into its platform. A blockchain application represents a service on the blockchain, such as an oracle or a DEX. Once integrated, any blockchain application within the Obliq network can utilize the functionalities of another, facilitating a highly interconnected and cooperative ecosystem. This is achieved by reconciling and settling tokens to the Lighthouse Chain via State Channels, ensuring that participants connected to the State Channel system can access liquidity from any connected chain.

Obliq acknowledges the prominence of Solidity as the most extensively utilized smart contract language within the blockchain industry. In light of this, Obliq plans to integrate the Ethereum Virtual Machine (EVM) into one of its Floating Chains at launch. This integration is aimed at facilitating the rapid incorporation of pre-existing smart contracts into the Obliq ecosystem, thereby streamlining the transition for developers already familiar with Ethereum’s programming environment. By aligning with established standards such as the EVM, Obliq seeks to enhance its platform's attractiveness and ease of use, encouraging broader adoption and more seamless migration of smart contracts from Ethereum to the Obliq network.

From Declarative to an Intent-Based Transaction Model

Traditional blockchains employ a declarative transaction model for processing user transactions. In this model, users explicitly specify each action they wish to perform within a transaction. For example, if a user intends to swap one token for another, they must designate the specific decentralized exchange (DEX) they wish to utilize. Consequently, only the selected DEX will be engaged, excluding all other potential platforms.

This requirement has led to increasingly complex DEX smart contract programming, wherein built-in routers attempt to identify the most favorable swap options. However, as the ecosystem expands and new applications are developed, DEX operators are forced to update their smart contracts to incorporate these emerging apps. Traditional DEXs face a lack of maintenance and experience delays in updating their smart contracts.

In the current model, the onus often falls on users to remain informed about the optimal decentralized application (dApp) to utilize, leading to poor user experience and low adoption as a result. Given the rapidly expanding number of applications, tokens, and concepts within the blockchain space, it becomes nearly impossible for users to stay current with every existing application. This situation underscores the limitations of the declarative transaction model in adapting to the dynamic and evolving landscape of blockchain technology.

Intent-Based Transaction Model

To address this issue, Obliq will employ an intent-based model for transactions. This model allows users to specify the desired outcomes of their transactions, and leaves out how to execute them. For instance, if a user intends to swap one token for another, they would specify the amount of the initial token they wish to trade and the approximate amount of the other token they aim to receive. The Obliq platform then identifies suitable swap providers and executes the transaction using any available method, even if that method does not use a decentralized exchange. It is also conceivable that Obliq might not just utilize one chain to complete a transaction, but could potentially coordinate multiple chains to optimize the transaction process. Economically, this is a far more efficient method of performing a transaction.

Obliq facilitates intents by establishing an intent market, where developers are motivated to fulfill user orders by competing for transaction fees. Developers create “Intent Coordination programs” which process orders as efficiently as possible. If an intent coordinator ceases to update their software, a more efficient coordinator will win the transaction. Some developers may possess expertise in specific market segments, allowing intent providers to specialize based on their unique skills. This competitive environment ensures that users receive optimal transaction outcomes, and relieves them from the need to continually update their understanding of a myriad of dApps. Application developers benefit too, as they can concentrate on improving their core offerings and deploy them directly to the Obliq ecosystem, without needing to integrate extra features for routing transactions or manage optimizations that don’t pertain to their main activities. In certain instances, it may not even be a requisite for a given dApp to deploy a front-end, as intent providers autonomously leverage the dApp for transaction processing. Consequently, this makes blockchain technology more accessible to the average user.

More specifically, Obliq allows for both intent-based and declarative-based transactions. A typical user will primarily use the intent-based model. However, there are instances when it is beneficial to call a specific contract or execute a primitive.

Examples of primitives include:

As such, we define the following operation types:

  1. A primitive unary operation denoted by ρ.

A primitive operation is a 2-tuple consisting of an n-tuple of inputs and the primitive operation being called. Primitive operations can be used for declarative-based transactions. For example, the following 2-tuple is illustrative of a contract being called with zero input parameters:

.

  1. An intent denoted by φ.

In Obliq, we define an intent as a function φ: G → H, where G and H are finite algebraic structures representing sets of inputs and outputs, respectively. These mappings instantiated by φ may correspond to operations such as token transfers, token swaps, loan requests, or a variety of other state transitions within the system, all of which can be formally represented within the algebraic structures G and H. Intent providers endeavor to identify elements or mappings within these structures that satisfy the conditions imposed by φ, thereby fulfilling the intent. For example, the following is illustrative of a simple token swap:

where

and

Therefore, a transaction can be rigorously defined as an n-tuple of operations, where each operation is an element of the algebraic structure formed by the coproduct (disjoint union) of the following sets:

The request is then processed, in order, by a given intent provider. Predictably, outputs from one or multiple operations can be used as the input for another.

Obliq Account Model

To facilitate seamless token interoperability among Obliq's various Floating Chains, a unified account model is implemented on the Lighthouse Chain. While Floating Chains have the autonomy to employ their own internal account models, interchain transactions are required to conform to the Lighthouse Chain's account model. This unified account structure establishes a standardized interface across the different chains, enabling interoperability without the complications commonly encountered in other multi-chain ecosystems.

Obliq plans to incorporate the ERC-20 and ERC-721 standards as foundational primitives within its system architecture, thereby enabling standardized operations for both fungible and non-fungible tokens. Furthermore, Obliq will integrate advanced multisignature control mechanisms into its unified account model. This integration facilitates the seamless implementation of various types of decentralized autonomous organizations (DAOs) and addresses the complex security requirements commonly encountered in the blockchain domain.

Obliq Tokenomic Model

Obliq employs a multitude of mechanisms to ensure that participants within its network are consistently incentivized to deliver high-quality and continuous services. A novel aspect of Obliq's architecture is that network participants receive a portion of the fees in all token types that traverse the network. For instance, if an intent handler facilitates swaps between the Obliq token and USDC, a fraction of both Obliq tokens and USDC tokens is allocated to network participants as compensation.

The following entities receive taxes and duties from transactions:

This revenue-sharing model establishes a robust incentive structure, promoting sustained engagement and high-quality service provision among all network participants. By aligning the economic interests of these parties with the overall performance of the network, Obliq enhances interoperability and mitigates issues commonly found in other multi-chain ecosystems.

Obliq plans to implement an initial inflation rate, currently undetermined, which will decrease annually by a specified percentage until it stabilizes at a lower target rate, such as 1.5%. The Obliq tokens generated through this inflationary mechanism will be distributed among all network participants, providing incentives for ongoing engagement and contribution to the network's functionality. Furthermore, a token-burning mechanism similar to that utilized by Solana may be introduced, wherein a portion of Obliq tokens is burned during each transaction. This mechanism would effectively decelerate the growth of the circulating supply in relation to transaction volume, potentially mitigating inflationary pressures over time.

Obliq Governance and the Microstate Model

Obliq's primary objective is to establish a system that is free, permissionless, and highly decentralized. To achieve this aim, Obliq's governance framework permits adjustments to tax rates and token inflation rates exclusively at the Lighthouse Chain level. Additionally, the governance framework allows for the modification of fees and token distribution within the Obliq Routing Network. In contrast, Obliq regards all components external to the Lighthouse Chain and the Obliq Routing Network—such as Floating Chains and other network participant modules—as sovereign entities operating without additional imposed restrictions. These components function analogously to microstates within a larger federation, each possessing the freedom to govern themselves according to their own rules and protocols.

Each Floating Chain and network participant component can be viewed as a microstate within the Obliq ecosystem's vast "continental" structure. Just as microstates in the geopolitical world maintain sovereignty while benefiting from economic and diplomatic relations with larger nations, Obliq's microstate components enjoy autonomy while interoperating seamlessly through the Lighthouse Chain and Obliq Routing Network. This microstate model fosters an environment where innovation thrives, as each microstate can tailor its functionalities, governance models, and economic policies to suit its unique objectives and the needs of its user base.

The microstate architecture brings several advantages that contribute to the robustness and vitality of the ecosystem

  1. Enhanced Sovereignty: By allowing each microstate to operate independently, Obliq maximizes decentralization. This reduces the risk of central points of failure and mitigates the influence of any single entity over the network's operations.

    1. Each Floating Chain must follow two simple rules: implement state channels, and connect to the Lighthouse Chain.

  2. Scalability and Efficiency: Microstates can process transactions and execute smart contracts within their own domains, alleviating congestion on the Lighthouse Chain. This parallel processing capability enhances the overall throughput and efficiency of the network.

  3. Innovation and Customization: Autonomous microstates encourage experimentation with new technologies, and consensus mechanisms.This diversity accelerates technological advancement and allows successful innovations to be adopted organically by other microstates.

  4. Resilience and Security: The independence of microstates compartmentalizes issues or attacks affecting one do not necessarily compromise others, enhancing the security posture of the entire ecosystem.

  5. Economic Diversity: Each microstate can implement its own tokenomics, fee structures, and incentive models. This economic diversity attracts a broader range of participants and use cases, enriching the ecosystem.

In alignment with this approach,

The Future of Obliq

Obliq is envisioned as a digital port city, strategically designed to facilitate trade among various application chains. The initial stage of Obliq's development focuses on ensuring the swift deployment of application chains, known as Floating Chains. To support this, the creation of a comprehensive software development kit (SDK) is essential, enabling developers to rapidly establish new chains. Recognizing the importance of developer experience, Obliq is committed to providing a seamless and robust platform for innovation.

Considerable advancements have been achieved in the development of the foundational technology for the Lighthouse Chain, including comprehensive testing of the consensus layer. Building on over a year of research and development, the Obliq platform has matured well-thought-out ideas and strategic planning. Although Obliq has successfully demonstrated the viability of the underlying concepts through proof-of-concept implementations, there remains a significant amount of development work required to transform Obliq into a fully-fledged platform accessible to the lay user. This includes further development of the Obliq Routing Network and the Obliq State Channel system. Additionally, development of the front-end interface remains to be completed. These elements are critical for augmenting both the functionality and the scalability of the platform, ensuring that it can meet the needs of a broad user base and handle large transaction volumes effectively.

With a strong emphasis on ease of use and robust developer support, Obliq aspires to become a prominent hub for blockchain innovation, serving as a beacon for developers globally. By fostering an accessible and developer-friendly platform, Obliq is poised to accelerate the adoption and development of blockchain technology, enhancing its appeal and utility across a broad spectrum of applications.

As previously discussed, upon its launch, Obliq intends to support atomic swaps between Bitcoin and Monero to facilitate immediate liquidity for its platform. Additionally, Obliq plans to establish a Floating Chain compatible with the Ethereum Virtual Machine (EVM), enabling existing contracts to be transferred swiftly and efficiently. Given the considerable size of a given EVM state, which can extend into the gigabytes, it is impractical to hash the entire state directly. Instead, a feasible approach involves utilizing the Merkle root of the most recent state. This method provides a compact and efficient representation of the state for computational purposes.

To further enhance the security and integrity of this data, techniques such as cryptographic accumulators (ECC / RSA) or recursive zero-knowledge proof systems (Nova, Plonk) can be employed. These methods allow for the compression and verification of state information and validity without worrying about the entirety of the underlying data. Once processed, the Merkle root is then cryptographically signed, facilitating its use in state channels. However, Obliq's potential extends beyond merely replicating the functionality of Ethereum or other prominent blockchains as another layer 2 solution.

Upon the integration of logic into an Obliq Floating Chain, its functionality becomes instantly available across other Floating Chains within the network. This interoperability fosters the development of a myriad of applications within a mesh-like network structure, where each application can rely on and enhance the functionalities of others. A particularly ambitious project that excites the Obliq team is the creation of a decentralized internet, a project which Obliq plans to develop after its core technology has been fully realized.

A persistent challenge in the blockchain space is the development of truly decentralized front-end infrastructures, where achieving decentralized storage and efficient data transmission has been difficult with existing solutions. Obliq effectively addresses this issue through its state channel technology and the Obliq Routing Network, which utilizes an onion-like communication protocol that enables decentralized and distributed communication among parties. By leveraging these technologies, Obliq can efficiently accomplish decentralized storage of front-end components and secure data transmission, overcoming previous limitations in the field. Moreover, the Obliq Routing Network allows for the seamless integration of Proof of Storage and Proof of Transmission mechanisms, enhancing the security and reliability of data within the network.

This technology offers the potential to facilitate the creation of fully decentralized streaming services, where even a pay-per-byte model is viable. With the capabilities provided by Obliq, it is conceivable to envision decentralized versions of major social media platforms such as YouTube, TikTok, and Twitter/X. The flexibility of Floating Chains in implementing various application logic allows for a decentralized version of Twitter/X, for instance, to operate entirely on advertising revenue, with network participants earning transaction fees for their support of the network. In addition, the functionality from other Obliq Floating Chains can be directly integrated into these platforms, allowing a decentralized version of YouTube, for example, to support user sponsorships or user merchandising stores by accepting a variety of different tokens for payment. This technology makes it simple for a decentralized payment platform, like Paypal, to be created on top of the Obliq platform.

Furthermore, virtually any Floating Chain developed on Obliq contributes to accruing fees to the Lighthouse Chain, thereby enhancing the overall value of the Obliq platform as more applications are created. This model not only incentivizes the development of diverse applications but also promotes the growth of the Obliq ecosystem.

In addition to facilitating decentralized applications, Obliq could potentially standardize its accounts as a form of unified digital identity that could be utilized across decentralized services. This approach would simplify user interaction across multiple platforms while maintaining high levels of security and privacy. The Obliq Routing Network could play a critical role in this context by preserving the anonymity and permissionless nature of individual users, while still enabling a robust connection to specific services through a secure and verifiable digital identity. This dual capability of enhancing user privacy while ensuring reliable service connectivity positions Obliq as a pioneering solution in the realm of decentralized digital identities and applications.

While it is not feasible for the Obliq team to develop every potential application for its platform, the attributes of Obliq—characterized by high transaction speeds, robust interoperability, and a developer-centric design—are poised to attract substantial support from the developer community. These core features facilitate the creation of diverse and complex applications, making Obliq an attractive platform for developers looking to leverage its advanced capabilities.

The emphasis on high transaction speeds and interoperability ensures that applications developed on different Floating Chains within the Obliq ecosystem can communicate seamlessly with one another, crucial for building a cohesive network of decentralized applications (dApps). Additionally, Obliq's commitment to a developer-focused design enhances the development experience, reduces barriers to entry, and enables rapid prototyping and deployment, attracting a wide range of developers and fostering innovation in the blockchain space.

Obliq – The Universal Operating System

Obliq is conceptualized as a universal operating system for blockchain applications, akin to how Windows operates for traditional software. This design philosophy enables developers to build a wide variety of applications atop the platform, mirroring Windows' initial focus on providing a fertile ground for developers. By establishing a robust foundational layer that supports diverse application development, Obliq aims to replicate the success of widespread developer engagement that platforms like Windows have achieved. Similar to how Windows provides a comprehensive suite of tools for robust Internet communications through its network stack, facilitating the development of a wide array of applications, Obliq is designed to simplify the process for developers to create new applications and ensure seamless communication and integration within its ecosystem. Moreover, drawing parallels to Apple's success in synchronizing information across its devices—where photos taken on an iPhone are immediately available on a Mac—Obliq aims to significantly enhance the ease of securely storing all Web 3 related information within its ecosystem. By doing so, Obliq is positioned to establish a unified and innovative platform that could shape the future landscape of computing in the blockchain domain.

Detailed Overview of Obliq State Channels

State Channels for Off-Chain Contract Execution represent a pivotal enhancement in blockchain scalability, enabling the off-chain execution of smart contracts and other complex stateful interactions. By minimizing the need for on-chain transactions, state channels significantly reduce transaction latency, lower costs, and alleviate blockchain congestion, enabling use cases that are difficult or even impossible to achieve in a standard blockchain setting.

A state channel is a mechanism that allows two or more parties to execute arbitrary state changes off-chain, including the execution of smart contracts, while maintaining the ability to settle disputes on-chain. It operates by creating a private, off-chain communication channel that can update the state of a smart contract or transfer value between participants without the need for every transaction to be recorded on the public blockchain.

The fundamental operation of a state channel hinges on its initiation and termination mechanisms. To initiate a state channel, participating entities are required to deposit a specified quantity of tokens into a blockchain-anchored contract, frequently designated as the state channel contract (SCC). This contract might not conform to the conventional definition of a smart contract but may rather be integrated as a fundamental component of the blockchain's architecture. This embedded "contract" is crucial for enforcing the protocols for dispute resolution, thereby providing assurances that either party involved can revert to the blockchain to conclusively settle the channel in the event of a breakdown in cooperation.

Smart Contract Execution in State Channels

The execution of smart contracts within state channels follows a predefined protocol. Consider a smart contract C with a dynamically evolving state instance G, executed off-chain between two parties, Alice and Bob. To initiate the state channel contract, both parties agree upon the initial state G0​ and affix their signatures to this state. From that point onward, the execution of the state channel contract occurs locally between the parties Each state change is assigned a version number to ensure that the latest valid state can always be referenced. Essentially, all channel participants perform the state transitions and transmit the signed state to their counterparts within the channel.

For example, if Alice wishes to invoke a function 𝑓 in the contract, she first calculates the new state đșđ‘€ + 1 ​by applying the function 𝑓 with her parameters 𝑚 to the current state đșđ‘€. She then signs the new state đșđ‘€ + 1 ​along with the updated version number đ‘€ + 1 and sends it to Bob. Bob verifies (e.g. replay and/or prove) Alice’s computation, and if correct, he replies with his signature on đșđ‘€ + 1. This mechanism ensures that both parties reach an agreement on the updated contract state by leveraging an economic game-theoretic approach, thereby allowing execution to proceed without the need for on-chain involvement.

Under this scheme, a potentially unlimited number of complex state updates can be executed within one or more channels (i.e. multi-hop state channel updates), as only the signed updates to the state are transmitted, irrespective of their complexity.

References:

The Bitcoin Lightning Network: Scalable Off-Chain Instant Payments. (2016) Retrieved from http://lightning.network/lightning-network-paper.pdf

International Association for Cryptologic Research. (2019). Multi-Party Virtual State Channels. Retrieved from https://eprint.iacr.org/2019/571.pdf

International Association for Cryptologic Research. (2020). Generalized Channels from Limited Blockchain Scripts and Adaptor Signatures. Retrieved from https://eprint.iacr.org/2020/476.pdf