One blockchain network that is getting rave reviews in the crypto world is Dymension (DYM). The DYM token successfully caught the attention of the crypto community through an airdrop that distributed 70,000,000 DYM to users of Solana, Ethereum, Celestia, and other blockchains.

 

However, the main attraction was the airdrop and Dymension’s innovative technology. Dymension introduced RollApps, a modular blockchain concept that makes it easy to develop decentralized applications (DApps) for various purposes, such as gamefi, NFTs, DeFi, and more.

 

Now, to understand more about what Dymension is, from its founders and history, its technology, and how it works to DYM tokens as an investment, check out the full review below.

 

What is Dymension?

 

Quoting dymension.xyz, Dymension is a modular blockchain network developed using the Cosmos SDK to support the creation of RollApps. Its center is the Dymension Hub.

 

RollApps are modular app chains connected to the Dymension network, enabling easy and fast development of dApps in just a few clicks.

 

In Dymension, there is the concept of Internet RollApps, a chain network consisting of RollApps (layer 2) and Dymension Hub (layer 1). RollApps are natively integrated with Dymension Hub, which provides security, liquidity, and connectivity.

 

According to the whitepaper, Dymension functions similarly to a web app, where users interact with RollApps as the front end. At the same time, Dymension acts as the coordinator for the entire ecosystem behind the scenes.

 

You can explore RollApps in Froopyland (testnet) to see the list of RollApps available on the Dymension platform. Currently, there are 1,152 RollApps with 1,400,000 active wallets and a Total Value Locked (TVL) of almost 13,000,000 DYM that have been bridged to RollApps.

 

RollApps is similar to Cosmos App-Chains but uses outsourcing to achieve consensus through Dymension Hub. RollApps utilizes Dymension Hub (layer 1) to secure user funds and the Data Availability (DA) network to publish transaction data.

 

At the end of January 2024, Dymension distributed DYM tokens via airdrop to users of Solana, Ethereum, Celestia, and other blockchains that met certain criteria.

 

This airdrop involved 70,000,000 DYM tokens, which is 7% of its total supply, with a value of over $390,000,000. This launch caused the value of the DYM token to rise by 58% to $5.6.

 

Dymension Founder and History

 

 

Dymension was founded by Yishay Harel, who is currently the CEO of Dymension. He has been active in the crypto world since 2016. In 2021, Yishay noticed the roll-up technology used on Ethereum’s L2.

 

He built the Dymension RDK (RollApp Development Kit) on Cosmos to make roll-up implementation easier for developers. Rollup technology offers a simple and effective low-cost business model with high returns.

 

However, L2 upgrades with custom implementations lead to fragmented and less secure user experiences, reducing the benefits of rollups and modular blockchains.

 

Dymension introduced rollup standardization using IBC (Inter-Blockchain Communication Protocol), which is similar to ERC token standardization. This paves the way for a true Internet of RollApps.

 

In early February 2023, Dymension raised $6,700,000 in funding. The funds were raised through a private round led by Big Brain Holdings and Stratos, with participation from DraftKings’ Shalom Meckenzie, DAO Matchbox, and others.

 

Dymension Technology

 

RollApps is a concept that brings together the roll-up business model, speed, and scale in one integrated experience. Dymension is leveraging RollApps to develop an efficient and easy-to-use crypto ecosystem in applications, opening up the opportunity for the emergence of the Internet of Rollups.

 

RollApps is a modular blockchain that processes customized transactions for specific applications. The Dymension Hub is responsible for consensus management, while transaction data is published through Data Availability (DA).

 

Dymension leverages the Inter-Blockchain Communication (IBC) protocol to standardize the rollup business model. IBC enables interoperability between various blockchains within the Cosmos ecosystem.

 

With IBC, RollApps can interact with other blockchains and facilitate the secure exchange of data and assets. Furthermore, RollApps in Dymension is a modular blockchain that does not require expensive validators.

 

Fund security is guaranteed through the Dymension Hub (layer 1), and transaction data is published through the Data Availability (DA) network. Dymension is committed to improving ease of use and economic sustainability in crypto applications.

 

How Dymension (DYM) Works

 

In Dymension, each RollApp operates autonomously by using its own native tokens for network fees. This means that users can make transactions directly with that RollApp without the need to go through major platforms like Ethereum, which typically charge fees.

 

This direct approach not only simplifies transactions but potentially increases the intrinsic value of those native tokens and opens up opportunities for wider use.

 

Dymension operates using various interconnected elements, such as Sequencers, Dymension Hub, RollApps, and Data Availability (DA) networks.

 

• Dymension Hub: Dymension Hub acts as the coordination center of the Dymension ecosystem. Sequencers publish the latest root status of the RollApp to the Dymension Hub. In addition, Dymension Hub is responsible for verifying evidence of forgery or fraud submitted by Sequencers and ensuring data integrity.
• RollApps: RollApps is a modular blockchain that is easy to implement and integrates with Dymension Hub. RollApps can maintain an average processing time of 0.2 seconds with a maximum throughput of approximately 20,000 transactions per second (TPS).
• Data Availability (DA) Network: This is a decentralized network where RollApps transaction data is published. Full Nodes of the RollApp network can request data from the data availability network to verify the root status of the RollApp. Dymension is connected with DA Celestia and Avail.

 

In the Dymension process, Sequencers are responsible for validating and processing user transactions. After processing the transaction, Sequencers publish the block containing the transaction to the Dymension Hub and the Data Availability network.

 

The RollApp network’s full nodes can access data from the Data Availability network to verify the RollApp root status.

 

Dymension Advantages

 

Dymension has several advantages that are important to know, including the following:

 

• Compatibility with EVM and IBC for RollApp development: Dymension provides two options for RollApp developers. Developers can use the RollApp Development Kit (RDK) or create a RollApp EVM.
• Integrated security with Dymension Hub: Every RollApps has security integrated with Dymension Hub, similar to Ethereum’s L2 which leverages Ethereum security.
• Enhanced crypto user experience and flexibility in token selection and business models: With Dymension, developers can easily create RollApps through the RDK. Users can make deposits from Ethereum and other blockchains with a single transaction through Dymension Hub. RollApps also do not fragment liquidity, as happens on Ethereum.

 

DYM Token as Investment

 

 

DYM is the native token of Dymension. DYM is used to support network security through DPoS, provide voting rights in governance, facilitate cross-chain interoperability, provide liquidity for AMM, and also for staking.

 

DYM has a maximum supply of 1,000,000,000 DYM tokens, with 14.6% of the tokens already circulating in the market. Dymension allocates most % of the tokens, 33%, to incentives managed by the protocol’s DAO for purposes such as RollApp Credit Streams, Rolldrop Seasons, and AMM Incentives.

 

Meanwhile, 20% is allocated to ecosystem development, 20% to the core team, 14% to supporting partners, 8% to public allocation, and 5% to the community. On February 16, 2023, the price of DYM reached $7.8, a significant increase from the initial listing price of $0.2.

 

Currently, Dymension ranks 64th in market capitalization, costing $1,400,000,000. This is impressive, considering the token was only launched at the beginning of the year.

 

Since the launch of the mainnet on February 6, 2024, the Dymension core team has continued to update the Dymension development roadmap. The main focus remains on developing and enhancing the Dymension Hub as the coordinating center of the ecosystem.

 

This includes expanding IBC connectivity, building bridges to various blockchain networks, and improving network governance and security. In addition, Dymension continues to drive the expansion of the RollApps network by introducing more modular applications.

 

The development will include 2D Permissioned RollApps, 3D Permissionless RollApps, and 4D Internet of RollApps phases.

 

Dymension’s Influence on the Blockchain Ecosystem

 

Dymension’s presence has made an important contribution to the development of modular blockchain applications by introducing the RollApps concept. Through RollApps, developers can easily create decentralized applications (dApps) for various purposes, including gamefi, NFTs, DeFi, and others.

 

Such a modular approach enables faster, more efficient development and greater scale in the blockchain ecosystem. Dymension has also been instrumental in bringing standardization of rollups and the Inter-Blockchain Communication (IBC) protocol into its ecosystem.

 

With such standardization, Dymension paved the way for the birth of a widely connected Internet of RollApps. IBC enables interoperability between different blockchains in the Cosmos ecosystem, while rollups help improve efficiency and scalability in exchanging data and assets between applications.

 

Furthermore, the crypto community has generally responded positively to the platform and technology offered by Dymension. By providing innovative solutions and making it easier to develop blockchain applications, Dymension has attracted the interest of many developers and investors in the crypto ecosystem.

 

The positive reception is reflected in the growth of the Dymension ecosystem, including the adoption of RollApps and increased user activity on its platform.

 

Conclusion and Future Prospects

 

To conclude, Dymension brings new potential to users and developers by introducing the RollApps concept, which enables faster and more efficient construction of modular blockchain applications.

 

Dymension provides users access to diverse, decentralized applications, ranging from gamefi to DeFi, with an easier-to-use interface.

 

On the other hand, Dymension provides tools such as the RollApp Development Kit (RDK) for developers to simplify the development process and facilitate integration with various blockchains through the standardization of rollups and the IBC protocol.

 

Dymension itself has great potential to expand its ecosystem and introduce innovations in the blockchain industry.

 

By focusing on developing and enhancing Dymension Hub as the coordinating center of the ecosystem, Dymension can continue to improve interoperability between various blockchains and increase scale and efficiency in data and asset exchange.

 

In addition, by engaging more developers and partners in its ecosystem, Dymension can expand the reach of RollApp applications and create more opportunities for innovations in the blockchain industry.

 

As such, Dymension has bright prospects of becoming a leader in shaping the future of decentralized and innovative blockchain ecosystems.

 

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