A GVNR Authority Discussion: How the Decentralised Stack Works

Written By GoverNEO

On Wednesday evening, leaders from The GVNR Authority assembled on X Spaces to discuss how the GVNR decentralised stack works, and explore all things Web3 and the future of DeFi.

It was a collection of some of the brightest minds in the industry:

What followed was an exciting and at some stages mind bending conversation about GVNR and where the future of blockchains is headed. I very much recommend setting aside an hour to listen to the whole session, but if you’re just looking for the key points and themes, here they are:

Key Themes & Points:

How The GVNR Authority got started:

  • Ben, the originator of GVNR, was inspired by the challenge of developing a truly decentralised Web3 ecosystem, leading him to explore and seek out partners with the various components necessary for a decentralised stack. 

  • It’s taken 20 years of technology innovation and development to reach a point where all the components necessary for a truly decentralised stack now exist.

  • After countless hours of research, rabbit holing, and networking Ben connected with the other founding members of the GVNR Authority in order to create a truly permissionless DeFi stack:

    • GVNR - a network that introduces a custom-built general message passing framework allowing smart contracts control of any digital asset across ALL chains including Bitcoin.

    • Lit Protocol - the MPC partner that delivers a decentralised key management protocol

    • POKT Network - the RPC partner which allows GVNR to broadcast messages cross chain

    • Bancor - the AMM partner with the Carbon DeFi platform and Carbon AMM which allows for extraction of liquidity.

  • The team came together through conversations on Twitter/X, united by a shared vision and mutual interests in advancing Web3 technology. They are particularly focused on solving the challenges around cross-chain interoperability, composability, and the seamless movement of value across different blockchain ecosystems.

Decentralisation & Permissionlessness:

  • The GVNR Authority emphasises building a fully decentralised stack, which is chain-agnostic and focuses on interoperability across various chains. This approach is essential to avoid the fragmentation of liquidity into isolated "islands" that can’t interact with each other.

Interoperability and Composability:

  • Composability is a central theme—the ability to build on existing protocols, where different blockchain components can seamlessly interact and build upon one another.

  • Lit Protocol offers a programmable key network that allows cross-chain key management, making it possible for users to control and secure their keys across different blockchains. This reduces the friction between chains and facilitates trustless execution of transactions.

Cross-Chain Liquidity & Marketplaces:

  • Carbon DeFi, an AMM, is reimagining liquidity exchanges by creating new marketplaces for token economies. The idea is to allow user-generated tokens to gain more traction and liquidity, especially when they are not listed on centralised exchanges. This plays into a broader vision where decentralised finance (DeFi) projects have a more diverse set of tokens with liquidity unlocked.

  • Ben and Mark explored the current complexity of Uniswap and other protocols as they scale across chains. For example, Uniswap’s integration with Layer 2 solutions like Optimism might reduce the high overheads of Ethereum’s mainnet but is still limited in terms of interoperability.

The Future of Chains & New Ecosystems:

  • There is a Cambrian explosion of new chains and decentralised applications (dApps) that are emerging, but they need to be able to operate across chains. Universal interoperability is the ultimate goal, allowing users to access liquidity on different chains, regardless of the specific ecosystem they’re using.

  • There will always be premium chains like Bitcoin and Ethereum that dominate, but the growing diversity of chains is expected to drive a more user-driven approach to adoption. Users will be able to interact with various chains as they wish, but they need to do so through open, decentralised tools like JUSTPAY.

  • The future of blockchain cannot be sustained by centralised exchanges. These platforms act as gatekeepers and limit the flow of liquidity. An overwhelming majority of new and existing tokens, containing vast sums of wealth, cannot be found on centralised exchanges. We need a decentralised cross-chain protocol in the form of GVNR to connect these chains and unlock the liquidity contained within.

Trust and Transparency:

  • All GVNR Authority members focus on the importance of trust in the Web3 space. They advocate for auditability, immutability, and transparency in all protocols. By ensuring that code is well-audited and transparent, they aim to inspire trust in the broader community.

  • Documentation is also key to helping users understand complex systems, particularly when they’re interacting with various layers of blockchain technology.

Challenges of Cross-Chain Functionality & Security:

  • The GVNR Authority highlighted the need for robust security when connecting chains, as many new protocols face trust issues in deploying cross-chain features. They aim to mitigate these risks by building protocols that remain open and permissionless while ensuring security and robust auditing processes.

  • As cross-chain functionality grows, it will introduce new challenges and security concerns, which the GVNR Authority plans to address with rigorous, transparent development practices.

Looking Ahead – Product Developments:

  • GVNR Protocol Lead, Ben, announced that JUSTSWAP is the next major upcoming product that will allow users to swap assets across different chains, evolving the current state of cross-chain exchanges. JUSTPAY also has an exciting development roadmap with new chains, tokens, and wallet connections coming soon.

  • Eli talked about plans at Lit Protocol around plans for scaling the network, making it more efficient and capable of handling increased volumes as adoption grows. He then blew all our minds by talking about exploration into post-quantum encryption and advanced AI integration for governance that are in the pipeline, which could radically change the way Web3 operates.

  • Over at Bancor, Mark and the team is working on Carbon DeFi’s upgrade and exploring ways to improve liquidity management, especially in the context of AMMs.

Looking to the Future:

  • Post-quantum cryptography is seen as a significant challenge and opportunity in the blockchain space. As cryptographic techniques evolve, ensuring security against quantum attacks will be crucial for Web3’s long-term viability.

  • The GVNR Authority remains focused on ensuring the GVNR protocol will be capable of scaling as the ecosystem grows, with a particular focus on cross-chain interoperability and scalable governance for decentralised agents.

Final Thoughts:

The GVNR Authority is building a decentralised, permissionless stack with a strong focus on interoperability and trust. By using technologies like MPC Lit for key management and Carbon DeFi for liquidity extraction, they aim to create an open and secure ecosystem that can scale across various blockchain networks. 

The GVNR Authority is also focused on tackling cross-chain complexity and security issues while ensuring transparency, scalability, and innovation. As Web3 continues to evolve, they believe that fostering trust, security, and open standards will be key to the space’s success.

GoverNEO
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The GVNR Tokenomics & Fee Mechanism: Ripping Up the Playbook