Octopus Network is a NEAR-based multi-chain interoperable crypto network that facilitates appchain operations, and offers leased security and one-stop infrastructure.
The NEAR Protocol has opened the floodgates for innovative projects, allowing the public to access the untapped benefits of blockchain technology that can scale. With this new opportunity, one new platform is all geared up to unlock the benefits of appchains using NEAR’s phenomenal speed, security, and scalability.
Octopus Network, a platform founded by veteran developer Louis Liu, started from a cross-chain interoperability project called “Cdot.”
Liu and his fellow developer friends started the Cdot Project in their belief that multi-chain and multi-use cases are the future of Web 3.0. And a big leap took place when Liu started a collaboration with NEAR Protocol, which gave birth to the now emerging Octopus Network.
What is Octopus Network?
Octopus Network is a NEAR-based multi-chain interoperable crypto network that facilitates appchain operations and also offers leased security and one-stop infrastructure.
Appchain, which is short for “application-specific blockchain,” is an independent blockchain intended for custom-designed applications.
Octopus Network was built to establish the right balance between connectivity and independence, which is now being seamlessly implemented in the platform. Appchains, security, interoperability, and infrastructure are tightly knitted with each other, but each appchain is still equipped with independence and decision-making capabilities.
Yes, the “Octo” in the word Octopus means “eight,” but it doesn’t mean that the platform is focusing on certain eight major areas or even eight major functions.
The name was chosen because of the Octopus’ intelligence and its tentacles, which symbolize decentralization.
What is an Appchain?
An Appchain and a Dapp shouldn’t be confused with each other because these two types of applications have major differences.
An appchain’s advantage against a dapp is that it allows developers to design specific aspects in their application, such as governance structure, consensus algorithm, and economic design.
Another major asset of appchains is their speed which can reach thousands of transactions per second and fast finality, thanks to their dedicated mechanism design.
Appchain + NEAR Protocol
Appchains are inherently expensive to launch and requires large capital just to streamline their security, which prevents them from receiving wider adoption despite their massive benefits.
Octopus Network eliminates these problems by using NEAR Protocol’s sharding technology, which enables it to handle thousands of appchains with endless scalability. Moreover, it also unloads a large chunk of the workload from developers by providing a complete set of infrastructure for appchains, allowing them to focus on key aspects of their projects.
The platform also has a “meta community” to facilitate and strengthen hundreds of web3 application communities. On top of that, it allows appchain founders to display their crypto network merits to attract investors, protocol participants, validators, and delegates.
Octopus Relay, the technology that runs at the core of the Octopus Network, is a set of NEAR-powered smart contracts, which is also called the mainchain.
The network’s appchains, being on the demand side of the market, pays “rent” in their native tokens to lease much-needed security from OCT token holders. OCT is the native token of the Octopus Network, which will be discussed in detail in the next section.
The OCT Token is a fungible and non-inflationary token that Octopus Network’s users and developers use to pay for network use and for the validators’ services. The token has three primary utilities, which are staking, voting, and governance, and can be used to provide collateral for the security of an appchain.
The Octopus Network employs the so-called “LPoS” or Leased Proof-of-Stake that chooses a group of network maintainers from staking participants. Validators with normal operations, or in other words, those that have successfully fulfilled their duties, are eligible to gain rewards.
And for those who fail to execute their duties, the network penalizes them by slashing their staked assets.
Delegators, who are required to have a minimum of 500 OCT tokens, are responsible for delegating their OCT tokens to “Validators’.
Their main responsibility includes searching thoroughly for validators with the best reputations in the Octopus Network to ensure that their OCT tokens will be in good hands.
Verification is extremely important because delegators’ rewards will be deducted if their validator’s reward gets slashed because of irresponsibility.
To become a validator in the Octopus Network, a platform user must stake a minimum of 10,000 OCT tokens.
A validator helps run nodes for appchains and assists delegators in managing their OCT tokens to make profits in the platform.
As a reward, a validator receives a block reward in the form of native tokens from the appchains they are managing and a 20% commission from the delegators’ profits.
To learn more about being an Octopus Network validator, click this link to explore the detailed responsibilities and requirements of this role.
Octopus Network’s ability to surpass the limitations of appchains is an innovative service that developers are waiting for. But since it’s a relatively new platform, it has yet to make solid proof of its ability and consistency in delivering all its promises. Time will tell how much value this DeFi network can truly bring to the space.