Varys Capital is pleased to announce an investment in Analog. Analog’s mission is to provide omnichain interoperability that allows any number of blockchain projects to communicate with each other, providing a decentralized, secure, trustless, and infinitely scaling transaction ledger.
Although blockchain and digital assets have been disruptive, revolutionary technologies, areas where they have traditionally struggled have been response times and transaction throughput. Individual networks such as Lightning for Bitcoin have helped alleviate these issues on a per-chain basis, but interoperability options between chains still remain limited. Analog has been described as a “blockchain of blockchains” – a means to record and validate event data for the purpose of communicating across separate chains and transferring assets.
Because blockchains are effectively siloed from each other, normally a bridge or separate project would need to be built to allow them to transact. While bridges are functional, they are also terribly inefficient compared to on-chain transactions. Analog provides a system of record where event data is immutably recorded, which can then be leveraged by applications across multiple chains. Through this event data, an action on one chain can trigger an action on an app on a completely different chain, bypassing the need for sidechains or bridges. Blocks are confirmed in about 0.4 microseconds, making it thousands of times faster than Ethereum.
Analog uses a Proof of Time (PoT) consensus algorithm that confirms whether an event happened, as well as being able to prove that it did. PoT is fair in that it does not favor validators with higher numbers of tokens as in Proof of Stake, and avoids the computationally expensive operations and high energy use of Proof of Work. With PoT, all nodes must stake an equal amount of the Analog token, and blocks must be verified by two-thirds of randomly selected nodes. As a result, malicious actors must attain 99% of the cumulative ranking score while simultaneously controlling two-thirds of those randomly selected nodes, making a compromise attack impractical, even compared to other chains that might be vulnerable to a 51% attack. Analog rewards network participants by increasing the trust score of network validators the longer they have been participating in the network, rather than solely relying on the size of their token stake, ensuring that merely having a large number of tokens will not be sufficient to attempt to control the chain.
Due to all of these attributes, Analog is poised to finally solve the blockchain trilemma, managing to provide decentralization, scalability, and security without having to sacrifice one for the others. Up until now, blockchain developers have been required to make tradeoffs that compromise one of these three goals. Analog provides a way for chains to communicate effectively to prevent liquidity fragmentation, allowing decentralized exchanges to transact in a fast, safe, and scalable manner.
A strong, interoperable framework is going to be key for the digital asset space going forward, as various organizations will naturally be focused on their own projects in a desire to prove their worth to the community. Analog represents a way to bind the community together and break down the walls between various blockchain silos to allow all of their respective projects to communicate with each other in an increasingly interconnected community that is comprised of over 13,000 different individual currencies.
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