I. Introduction to Over Protocol
Over Protocol is dedicated to creating a peer-to-peer online financial system where ordinary users can run light nodes to participate in network consensus. It has partnered with Jambo, supported by top VCs like Coinbase and Paradigm, to launch OverWallet, pre-installed on Jambo phones. Over 5 million accounts have been established, with more than 1 million daily active users.
A new Layer 1 protocol with lightweight nodes, empowering personal computers so anyone can run a node and become a validator on their computer.
A node on a user's computer can provide a platform where individuals can purchase and download various plugin applications to interact with the network.
Driven by individuals, Over Protocol becomes a community-driven chain, allowing users to contribute more deeply to the network as they wish.
Over Protocol helps reduce blockchain node costs, enhance blockchain consensus, improve blockchain usability, and increase blockchain decentralization, thereby ushering in a new era of decentralized finance. The protocol has secured funding from institutions such as [xx] and [xx]. In testnet data, [xxx].
II. Targeting Three Major Issues
In blockchain history, Bitcoin pioneered a mechanism for online payments without intermediaries, and Ethereum further developed this concept through smart contracts. Today, various L1 and L2 protocols are being developed, but due to the accumulation of large amounts of data caused by historical growth and fast consensus algorithms, many protocols face over-centralization issues. Some mainstream public chains are even criticized as "server chains," leading to a monopoly by a few entities, marginalizing ordinary users, and increasing risk, thus deviating from the core pursuit of decentralization.
Over Protocol believes that decentralization is the primary goal of decentralized finance. Emphasizing that decentralization is crucial in the blockchain space, Over Protocol sees blockchain as a core financial system. A strong financial system needs to withstand attacks and failures and seamlessly integrate with other services. These prerequisites include security, stability, availability, and composability, all of which can be achieved through high decentralization.
The protocol focuses on solving three key issues:
1. Reducing the demand for enormous resources. Most well-known protocols, including BNB, Solana, and even Ethereum, require substantial computing resources to run nodes. This high demand prevents many potential participants from operating nodes.
2. Encouraging more participants. Consensus dominated by a few participants inevitably leans towards centralization.
3. Simplifying the complexity of network participation. The complexity of setting up nodes, combined with the need for technical tools like Linux and Chrome extensions, may deter many from joining the network.
To address these three issues, Over Protocol has proposed a set of feasible solutions.
III. Over Protocol's Five Solutions
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Introducing an Advanced Data Hierarchy
Over Protocol pioneers an advanced data hierarchy driven by Ethanos technology, allowing Over Protocol to organize data into three main layers: Over Layer, Nether Layer, and External Layer.
1. The Over Layer holds essential data required for blockchain operations.
2. The Nether Layer stores supplementary data.
3. The External Layer contains data beyond the blockchain. Only the Over Layer needs to maintain a constant size for blockchain participation, though users can customize their nodes to add functionality as needed.
Additionally, Over Protocol integrates and adapts Gasper, Ethereum's consensus algorithm, enabling millions of individuals to actively participate as validators. Furthermore, Over Protocol introduces user-friendly tools like PC and mobile applications, eliminating the need for technical tools like Linux or Chrome extensions.
Ultimately, Over Protocol envisions a blockchain ecosystem that breaks the monopoly of a few powerful entities, allowing everyone to actively participate and benefit from the network. Through innovative approaches and cutting-edge technology, Over Protocol is committed to overcoming obstacles that limit broader participation and accessibility.
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Reducing Node Operation Data Size
To allow as many individual participants as possible to join the network, Over Protocol's data hierarchy introduces layers within blockchain data and optimizes data management. It requires users to hold only the necessary amount of data, which is key to lowering the burden of blockchain participation. We categorize blockchain data usage into several layers.
This is crucial for reducing the burden of blockchain participation and the importance of the consensus process. Participants no longer need to worry about handling large amounts of redundant or irrelevant data.
In this design, the previously proposed Ethanos mechanism is an important safeguard, significantly alleviating the problem of data bloat, a common challenge in traditional blockchain designs. Ethanos introduces a novel classification and rules defining what constitutes necessary data. Therefore, participants in the blockchain network are allowed to retain the minimum amount of data.
These optimizations effectively lower the entry barriers for potential participants. The demand for large-scale storage and processing capacity is reduced, making it easier for individuals and small entities to become active contributors to the blockchain network. This accessibility, in turn, promotes decentralization, as more diverse participants can join the network.
The introduction of Ethanos offers users the opportunity to sync the blockchain within just a few minutes, greatly reducing storage requirements and enjoying faster transaction processing speeds. These advantages simplify users' node operations and represent a significant leap forward in achieving true decentralization in the blockchain ecosystem.
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Greater Network Capacity
Over Protocol's excellent data hierarchy and node requirements optimization lead to the formation of a global peer-to-peer network. As more nodes join, the security and reliability of the network also increase. Additionally, Over Protocol's lightweight operational burden provides space for nodes to support additional external layers, offering greater network expansion capacity to accommodate various external layers. Each external layer is designed to address and innovate specific aspects of blockchain technology. As we continue to refine and expand Over's capabilities, we foresee integrating multiple external layers, each further enhancing the user experience in the blockchain ecosystem.
The potential design space for these external layers is limitless, and they can greatly contribute to creating innovative blockchain experiences. Through the conceptualization and development of these external layers, Over's mission is to expand the boundaries of the blockchain and continuously improve the user experience for all users. As we formulate our roadmap, we look forward to seeing these innovations realized, enhancing the scope and functionality of Over Protocol.
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Breaking Barriers with Consensus Algorithm
Consensus algorithms are like referees in a game, ensuring that everyone follows the same rules.
For Over Protocol, Proof of Stake (PoS) is at the core. Participants prepare large amounts of OVER tokens from the market and stake them to create and validate blocks. If they successfully fulfill their role, they will receive OVER as a reward. However, any malicious activity may result in penalties, ranging from suspension to complete loss of staked OVER tokens. Thus, fair competition is not only encouraged but mandatory.
When choosing an algorithm, the protocol considers compatibility, aligning with Ethereum's Gasper, but optimized with the protocol. For instance, nearly 56% of ETH is staked by the top four validators. This centralization contradicts the core goal of decentralization and poses a significant obstacle. Over Protocol believes that the root cause lies in high hardware requirements. Although consensus protocols theoretically support millions of validators, the actual requirements for running nodes remain a huge barrier.
By optimizing the Gasper protocol, anyone, regardless of resources, can contribute to the network's security and stability.
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Accessible External Tools
To make blockchain more easily adopted, Over Protocol has made numerous optimizations based on two main strategies:
a. Providing a Revolutionary Graphical Interface Like DOS Transitioning to Windows
Windows and Ubuntu are typical examples of how graphical interfaces drive industry development. Microsoft's Windows, with its graphical user interface, revolutionized personal computing, making it accessible and intuitive to the masses. Similarly, Ubuntu brought the power and flexibility of Linux to users. In the past, deploying nodes was very cumbersome, with various commands intimidating ordinary users.
Drawing inspiration from these technological landmarks, Over Protocol has developed a node application based on a graphical user interface, ensuring that even blockchain novices can easily set up and run nodes. This ease of use not only encourages broader participation but also strengthens the network's robustness and diversity.
b. An App Store as Easy to Use as Apple's App Store
The smartphone revolution has reshaped digital life, making these devices indispensable tools. Their ubiquity highlights the opportunity to integrate blockchain into daily life. Over Protocol recognizes this shift and is pioneering a mobile-first approach to blockchain usability. By optimizing the protocol for mobile devices, Over Protocol ensures that users can interact with blockchain without requiring high-end hardware.
Over Protocol envisions a similar transformative experience, making blockchain usage on mobile devices as routine as downloading a new app or game. This approach not only provides unparalleled convenience but also encourages daily interactions with blockchain, integrating it into the daily activities of countless people.
IV. Development Data
Over Protocol and Jambo have launched OverWallet, with over 5 million registered users and more than 1 million daily active users.
OverWallet, through Jambo's Android smartphone JamboPhone, offers OverProtocol's exclusive mobile cryptocurrency wallet OverWallet to millions of potential customers in emerging markets. JamboPhone, pre-installed with OverWallet, is priced at $99 and sold in over 100 countries, targeting Gen Z users in emerging markets. Users will have access to a mobile device pre-installed with DeFi, gaming, and web3 infrastructure applications, enabling them to participate in the global web3 market.
The project has undergone two rounds of testnet, with the first round involving 43,000 participants, 12,500 of whom have experience operating validators from home, indicating good participation in core activities on the testnet. Additionally, 9,300 participants took part in the protocol's survey, providing us with valuable feedback. The distribution of participants shows good decentralization, with most coming from Asia (50.2%), followed by Europe (20.9%), Africa (11.4%), the Americas (6.1%), and a small number of participants from Oceania (0.24%). The second round of testnet participation saw explosive growth, effectively driving the rapid launch of the mainnet.
The project has conducted two rounds of NFT sales, divided into Public and Whitelist, priced at 0.05 ETH and 0.025 ETH respectively, with quantities of 17,000 and 2,500. Currently, the NFTs have 4,177 owners, with a total trading volume of 126 ETH, and a floor price of 0.08 ETH.
The protocol's official account on x has 795,000 followers, 180,000 fans on TG, and 303,000 subscribers on YouTube.
V. Roadmap
This roadmap stems from OverProtocol's two key goals: accessibility and usability. On the one hand, it is committed to improving accessibility, enabling ordinary people to run nodes, contribute to the protocol, and earn fair rewards, which is sustainable for both the protocol and participants. On the other hand, it aims to enable users to gain utility through the use of blockchain. After the mainnet launch, the protocol will focus on these two aspects and advance the following efforts:
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DePIN App Store
Users can offer and purchase computing resources through OverProtocol. OverNode will provide a DePIN App Store where people can distribute and download DePIN applications, offering and purchasing computing resources from other users. This will maximize storage provision, computing offloading, GPU utilization, and daemons for DeFi, such as oracles or liquidation. Users running nodes will earn additional revenue through DePIN applications, maximizing the utility of computing resources.
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RWA Market
There are various assets worldwide, but the project initially focuses on the voucher market, especially vouchers from Korean culture, such as K-Beauty, K-Pop, K-Stay, K-food, etc., as the project is headquartered in Korea. Among them, K-Beauty is the first target. The project will establish a market where anyone can easily trade these vouchers globally, providing financing for sellers, distribution profits for investors, and opportunities for buyers to purchase at lower prices. The project will expand this market to other Korean cultural and global original markets.
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DAO Treasury
Node verification is the original function of building a community, but not all users have personal computers or want to run nodes on physical devices. Therefore, the protocol has allocated a DAO treasury to promote the development of the ecosystem. This treasury will be operated by the DAO, and node verifiers and Nether NFT stakers will vote on how to use these funds. Initially, these funds will be allocated to Palm Staking and gradually transitioned to other pools. Thus, users can continuously contribute to the ecosystem by providing liquidity and earning rewards.
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Over the Rainbow Open Platform
The protocol has allocated a portion of funds to support ecosystem builders. It is an open platform where anyone can apply for funding and receive development support. Winners can run light nodes and use the funding to run validators to contribute to the protocol and receive support. A detailed announcement about Over the Rainbow will be made soon.
The above plans are expected to be completed in Q3 and Q4 of 2024.
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Microfinance
Since users on OverProtocol have cash flows (referred to as $Overflow), people can use this cash flow as collateral for microcredit. This means people can borrow directly from the protocol, bypassing traditional financial institutions. This financing method, combined with the DePIN App Store and RWA Market, will create significant synergies. Expected to be completed in 2025.
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Cashflow Streaming
Cash flow can be used to pay for other services or goods. For example, if you operate a validator node, you can use your cash flow to pay for telecom bills, rent, etc. Additionally, you can directly use your cash flow for these expenses. Alternatively, you can lend your staked Over tokens to these services, allowing you to focus on more important matters without worrying about missing payments. In the near future, anyone—not just real estate owners—will be able to generate cash flow and use it freely within OverProtocol.
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Standalone Dapp
OverProtocol provides a lightweight node that anyone can run on a personal computer, creating standalone dapps that run on the blockchain without the need for a web server. These standalone dapps run on users' computers, achieving complete censorship resistance and providing an unstoppable application environment, eliminating concerns about server shutdowns. This approach will significantly reduce dapp operational costs and lower fees. At this stage, the project is developing a new version of the decentralized network.
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Mobile Nodes
The protocol has already enabled running nodes on personal computers, but the ultimate goal is to enable nodes to run on mobile devices. To achieve this, further optimization technology is required. The protocol is currently designing an ultra-light node structure and adopting more sophisticated optimization techniques, such as partial pruning of smart contracts.
VI. Economic Model
The total token supply is 1,000,000,000, distributed as follows:
1. Community Reserve (Staking Rewards): 300,000,000 (30%). Staking rewards are released every block.
2. DAO Treasury: 100,000,000 (10%). 10 years of linear vesting per block.
3. Core Contributor: 150,000,000 (15%). 18-month linear vesting per block (75%) with a 6-month cliff (25%).
4. Investors: 100,000,000 (10%). 18-month linear vesting per block (75%) with a 6-month cliff (25%).
5. Over Technologies: 100,000,000 (10%). TGE (20%) / 18-month linear vesting per block (60%) with a 6-month cliff (20%).
6. Over Foundation: 100,000,000 (10%). TGE (20%) / 18-month linear vesting per block (60%) with a 6-month cliff (20%).
7. Over Community Access Program: 150,000,000 (15%). No vesting.
As seen, 30% is allocated for community staking rewards, and 10% is allocated to the DAO treasury with a 10-year distribution period, which will undoubtedly attract individuals and organizations to run nodes, enhancing the security and stability of the network. The sustainable income sources provided by this plan will help cover the costs required for running nodes, such as hardware, electricity, and maintenance. This is a significant incentive for individuals like me who are committed to contributing to the OverProtocol ecosystem.
VII. Conclusion
Although blockchain technology has transformative potential, it has long been plagued by accessibility challenges. Many protocols, while innovative, have become exclusive domains accessible only to a few, leaving the vast majority of potential users excluded. Over Protocol's mission is to address this pressing issue head-on.
Through a technology called Ethanos to construct and optimize data structures, Over Protocol enables node operations to run on more accessible devices, especially personal computers. This not only democratizes the process by lowering the entry barrier of hardware requirements but also remains true to the decentralization concept, ensuring that more participants can engage without being intimidated by high-end hardware requirements or the ever-expanding scale of the blockchain.
By addressing traditional challenges related to limiting consensus participation opportunities, the protocol ensures that all users, regardless of their background or resources, can freely join and leave. Moreover, with the introduction of an offline validator rescue mechanism based on Gasper, an additional layer of protection is added for participants and the network, emphasizing the commitment to a truly inclusive and decentralized future.
By emphasizing accessibility through user-friendly tools, Over Protocol is not only advanced in functionality but also user-centric. Over Protocol aims to go beyond mere technical innovation and foster a community where everyone can participate freely.
Overall, Over Protocol is a particularly noteworthy project in the current highly homogeneous competition among blockchain public chains, dedicated to the most core and important aspects of blockchain decentralization and peer-to-peer finance.
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