Cardano and Nervos Research Initiative to Find Solutions to UXTO Security Issues

Cardano Foundation is partnering with the Nervos network in a joint research initiative to secure smart contracts, especially on a blockchain, using the Unspent Transaction Output (UTXOs) transaction model. The research efforts come in handy as Cardano aims to take over the decentralized finance (DeFi) ecosystem following the Goguen testnet.

Cardano, and Nervos, two public chains using the UXTO accounting method on their networks, announced a joint research partnership that will see them share proprietary information and write research papers on open-source accounting models, UXTO-based security, and develop a universal standard of accounting across blockchains.

This initiative is set to enhance and develop better security systems on UXTO-based blockchains to provide more efficient interactions with DeFi applications.

First conceptualized and adopted by Bitcoin (BTC), the UTXO accounting model has grown as the most secure across blockchains. A UTXO accounting model entails recording the number of coins remaining in a specific wallet after executing a transaction while monitoring every transaction continuously. This accounting model provides a more secure network than the account-based model, which is used by smart contract-based blockchains such as Ethereum (ETH) and ERC20 tokens, the statement further reads.

The account-based accounting model offers a less cumbersome network to store transactions as opposed to the UTXO module. Account-based accounting models only focus on the balance of the wallet account, ignoring the individual transactions within the address, opening up a loophole to steal funds while no one is monitoring the wallet. Kevin Wang, co-founder at Nervos said,

“UTXOs are superior to account models in many ways and provide improved security, privacy, and scalability, all of which are critical for DeFi.”

This makes the account-based model susceptible to hacks and external attacks, as seen repeatedly across the DeFi space in 2020. According to a CipherTrace report, the overall value of DeFi hacks in 2020 rose to nearly $100 million as hackers turned their eye to the ballooning space.

Cardano and Nervos are both lining up to nab DeFi projects from Ethereum – both taking a step forward in 2020 to strengthen their market position. Nervos Network announced a collaboration with Huobi exchange to develop blockchain framework testnets on DeFi applications in March this year. Additionally, the network also added Chainlink’s decentralized oracles to enhance smart contract development on the platform.

Cardano recently announced its first-ever DeFi project built on the platform, Bondly, lending and borrowing DeFi app, earlier this week. This followed the launch of “Project Catalyst,” a $250,000 fund aiming at incentivizing DeFi developers to build on Cardano.

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Author: Lujan Odera

Huobi’s Dollar Pegged Stablecoin, HUSD, to Debut on Nervos Blockchain

Nervos, the public blockchain eyeing to rival Ethereum for China’s DeFi market, is integrating the HUSD stablecoin, according to an announcement on Dec 8. HUSD is a dollar-pegged stablecoin issued by Stable Universal Limited, an Huobi-backed venture. Notably, the HUSD stablecoin will debut as the first of its kind within the Nervos blockchain; before this milestone, HUSD was only supported by Ethereum.

The announcement highlights HUSD’s value proposition within the Nervos ecosystem; some of the featured use cases include trading, payments, commerce, and remittances. Stable Universal CEO Frank Zhang welcomed the support by Nervos, noting that the new expansion is in line with HUSD’s vision to scale DeFi access and the blockchain ecosystem in general. Zhang said,

“We are enthusiastic that this integration bids well for more future projects as we tackle more innovative ways to introduce users to the DeFi ecosystem.”

HUSD Support on Nervos

The HUSD stablecoin is pegged on a 1:1 ratio against the dollar; its debut on Nervos means that the same ratio will hold. As such, the stablecoin will be issued based on Nervos’ SUDT technical standard; this is the native ‘ERC-20’ of the Nervos blockchain network. With the integration set for completion early next year, Nervos users will be able to deposit USD and receive HUSD on a 1:1 basis.

This stablecoin will be functional on both the Nervos Common Knowledge Base (CKB) and its permissionless layer-1 blockchain. Other than the previously highlighted use cases, the HUSD stablecoin is expected to be a hedge against price volatility. Nervos co-founder, Kevin Wang, shared optimistic sentiments on the milestone to support HUSD,

“Stablecoins have been a priority for Nervos as we build out our ecosystem to support a wide variety of DeFi projects. HUSD has gained remarkable traction in establishing its place as one of the top stablecoins in the market in such a short time, so we’re excited to see what results from this continued collaboration.”

Despite being a recent innovation, the HUSD stablecoin has been making breakthroughs to feature among the top five stablecoins as of press date. The coin enjoys a market cap of over $230 million, while the total issued HUSD stablecoins is past the 2 billion mark since its launch back in July 2019.

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Author: Edwin Munyui

Nervos Network Integrates Chainlink’s Decentralized Oracles To Enhance Smart Contract Development

  • Nervos Network is the latest blockchain project to integrate Chainlink’s decentralized oracle system to enhance the data quality and enable more data-rich decentralized apps (DApps) to build onto the network.

In a published blog post on Medium, the Nervos Network announced its integration with Chainlink to utilize the latter’s decentralized data oracles. Chainlink provides a distributed feed of independent node operators that allow blockchains to pull data from trusted third-party data feeds.

Blockchain collect data form themselves and do not provide native access to these external data feeds. Decentralized oracles offer blockchains this access allowing them to collect data and ease the execution of smart contracts. With the integration of Chainlink, the developers on Nervos unlock a new layer tech to the platform allowing the creation of DeFi, insurance products, investment products, and gaming products, etc. Speaking on Chainlink-Nervos integration, Chainlink’s founder, Sergey Nazarov said:

“We’re excited to help integrate Chainlink’s secure and reliable oracles into Nervos […] By making off-chain data resources available on-chain, Nervos can now offer more value to both its developers and users, leading to additional use cases in DeFi, Gaming, Insurance, and more.”

Chainlink has seen rapid growth due to its reliability and secure properties in the past few months. The blockchain offers a wide range of decentralized node operators and oracle data feeds and external adapters “that can be written in any programming language to give the oracle read/write capabilities with any API.”

The co-founder of Nervos, Terry Tai, aims at a fully decentralized platform powered by fair and unbiased information from random oracle feeds. With Nervos planning to provide a platform to build executable and data-enabled smart contracts, the integration of real-world data on the blockchain is essential, Tai said,

“We’re excited to see a plethora of new products built on Nervos using real-world data and off-chain connectivity.”

Chainlink’s utility value has seen the crypto spike into all-times growing to hold 4% of the total crypto market capitalization. According to Coingecko charts, LINK is currently trading at $18.90, representing a 135% increase in the past 30 days to place 5th on the market cap listings.

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Author: Lujan Odera

Nervos Network to Launch Lina Blockchain After Securing $72 Million In Token Sale on Coinlist

Nervos Network, a blockchain startup, has announced the launch of Lina Blockchain. The startup is planning to launch its new project next week. Lina Blockchain will secure about $72 million from token sales of Coinlist. Miners and developers will have an opportunity to participate and utilize the company’s network on November 16. Nervos Network has the backing of Polychain Capital, Harshkey, Blockchain Capital, China Merchants Bank International, MultiCoin, and Distributed Global all in support of its efforts.

“The mainnet will allow users to develop applications on the blockchain without having to face a tradeoff between security and scalability,”

said Kevin Wang, the Co-Founder of Nervos Network. The mainnet has a two-layer structure where users build applications on the public layer and running them on the second layer.

Nervos Network was initially targeting to raise about $50 million for its network and exceed that amount in a three-week sale. The company has, however, declined to disclose the specific amounts of investments made by major investors.

With Nervos Network’s new CKByte token, users can access the blockchain’s storage space. This serves as a resource management tool as well as an incentive mechanism for miners. The token’s public offering statement shows that Nervos Network can use 23.5% of its initial token supply to encourage business partnerships and open source contributions.

Last year alone, Nervos managed to secure $28 million in funding. According to Wang, the fundraising was a private sale. The fundraising round was led by Sequoia China, a private equity, and Polychain. The fundraising guarantees a 14% initial token distribution for investors this year. The company will use the proceeds to incentivize more developers and miners to use the network and invest in research aimed at improving the network.

According to Wang, the company’s mainnet can serve as the technical infrastructure for various uses, from asset tokenization to a platform for decentralized finance. Even before the launch of the mainnet, Nervos had developed applications for China Merchants Bank International. After the launch, the company will work with more financial institutions to develop Defi applications.

Some of the team members in the company are among the earliest Ethereum developers in China hence establishing a significant presence in the developers’ community in the country.

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Author: Denis Miriti