How Accumulate Connects and Enhances Layer 1 & 2 Protocols

Written by Jay Smith

On January 6, 2022

Accumulate enhances existing Layer 1 and 2 solutions by providing a path to high transaction rates, low predictable costs, enhanced security, URL addressing, and robust digital identity capabilities.

Greater Throughput

Using Accumulate, Dapps can funnel tens of thousands of transactions a second into their hosting Layer 1 and 2 platforms. Transactions recorded in Accumulate are anchored directly into other platforms, such as Bitcoin or Ethereum to provide cryptographic proofs accessible directly from the host platform. Using Accumulate, for example, an Ethereum based Dapp could support payment rails requiring thousands of transactions per second.

Predictable & Economic Costs

Accumulate allows Dapps to store data and transactions at an affordable cost point and provides a predictable cost model. Transaction costs on Accumulate are held constant by the protocol as businesses cannot be successful without a predictable cost model. The data and transactions are then anchored into Layer 1 and 2 solutions for cross-chain access ability.

Addressing Security

Accumulate addresses Layer 1 and 2 security issues by providing hierarchical private keys. Rather than associating addresses, identities, and other digital assets with a single private key Accumulate uses a set of hierarchical private keys. A compromised or lost key can be replaced using higher priority keys. By leveraging the Accumulate key management capabilities projects can painlessly add support for standard enterprise security features like key rotation and key recovery.

Accumulate Digital Identifiers (ADIs)

Accumulate provides human-readable URL-like addressing rather than randomly generated hexadecimal addresses. Using Accumulate, Dapps built on existing projects can create less error-prone and more user-friendly human-readable addressing schemes that span not only the host project but multiple projects.

Accumulate organizes the blockchain under identities, rather than by randomly generated addresses. Existing Layer 1 and Layer 2 projects can leverage Accumulate identities to model the real world of companies, divisions, campuses, IoT devices, and so on.

The combination of human-readable URLs and identity services provided by Accumulate will facilitate the creation of true Web 3.0 applications on top of existing Layer 1 and 2 solutions. At the same time, Accumulate provides the pathway to transaction speeds to support real-world problems at a cost that will fit into real-world budgets.

ADIs to Publish Data to Smart Contracts

Accumulate uses Accumulate Digital Identifiers (ADIs) as its core organizational structure. Accumulate leverages ADIs to build powerful application/blockchain integrations. ADIs are used to collect, organize, validate, and publish data to smart contracts on Ethereum, Solana, Tezos, Cardano, Bitcoin, and other blockchains. ADIs give users the tools they need to dynamically model, manage, and maintain the dynamic nature of blockchain, application, organization integrations.

Other Use Cases

  • Supporting a user’s need to leverage digital identities by coordinating on chain voting, polling, and group decision making.
  • Supporting dynamic distributed validators for decentralized blockchain and application integrations.
  • Using the Validator/Accumulator architecture to provide high performance, low cost transactions and data.
  • Separating the security and control from the organization of digital assets
  • Addressing all blockchain artifacts via URLs, including the accounts that hold tokens and data for users and applications.
  • Providing for “Virtual Blockchains” that extend the control of smart contracts on other blockchains over digital assets on Accumulate.

Accumulate succeeds through its ability to create dynamic and distributed integrations between many platforms both in the real world and the entire crypto sector. This is possible by primarily concentrating on Accumulate Digital Identifiers (ADIs).

Related Articles

Chain of Chains Overview

Chain of Chains Overview

A common misconception about Accumulate is that it is simply another monolithic blockchain like Bitcoin, Ethereum, or Solana. While...

Accumulate Tokenomics Model Part 2

Accumulate Tokenomics Model Part 2

Previous: Accumulate Tokenomics Model Part 1 Initial Token Distribution  The native ACME token of Accumulate has a maximum supply of...

0 Comments

Submit a Comment

Your email address will not be published.