📄 3. Technology and Architecture

3.1 Blockchain Framework

ANM Chain is based on a highly flexible blockchain setup, as it has been built on either Cosmos SDK or Substrate, which are proven solutions that are fit for the purpose and are also well-known and well-utilized. Apart from its versatility regarding a range of factors, this setup also facilitates the level of performance delivered by the solution introduced by our developers as a new startup. Finally, its dissemination was based on the Proof of Stake – PoS consensus, which allowed the right balance between the two crucial concepts – execution efficiency and the level of security chosen in the case in question.

Cosmos SDK and Substrate

Cosmos SDK: The Cosmos SDK is a valuable modular framework for building interoperable and customizable blockchain applications. It gives developers the ability to create sovereign blockchain applications, which are blockchains that can function on their own while being part of a larger inherently connected ecosystem of blockchains. This provides developers with the necessary autonomy to create customized solutions that best meet their business or application needs, which is why this framework is so popular.

Substrate: Substrate was developed by Parity Technologies as a platform that makes it easy to develop your custom blockchain. Specifically, it is designed to be flexible as well as modular. The former means that developers can create a module from scratch, whereas the latter indicates that they can modify an existing one. This architecture accommodates the development of both simple, non-inclusive chains intended for specific applications and more complex, sophisticated ones with many features. Moreover, many projects benefit from rapid development cycles that are enabled by quick iteration and deployment, which is precisely what is supported by Substrate’s architecture.

These frameworks allow the creation of sovereign blockchain applications. For instance, you could define the consensus algorithm as follows:

Proof of Stake (PoS):

Scalability and Adaptability

ANM Chain's performance testing aims to support up to 10,000 transactions per second (TPS), matching or surpassing similar high-performance blockchains.

Scalability: The frameworks that ANM Chain is built upon are engineered to handle a high volume of transactions per second (TPS). This scalability ensures that as the network grows and the demand for transaction processing increases, the blockchain can continue to perform efficiently without compromising speed or reliability. This capability is essential for supporting large-scale applications and maintaining a seamless user experience as the network expands.

Adaptability: ANM Chain's architecture is highly adaptable, enabling it to be customized for specific use cases. This adaptability extends to integrating with other blockchain networks, allowing ANM Chain to function within a broader blockchain ecosystem. This integration capability is vital for creating interoperable solutions that can communicate with and leverage the strengths of other networks, thus enhancing the overall utility and value of the blockchain.

3.2 Proof of History (PoH)

Time Encoding: PoH makes use of cryptographic methods to encode and convey the passage of time between two different events. PoH is responsible for verifying and ensuring that transactions by users on the blockchain are in correct order; thus, timestamping is inevitable when making use of PoH. In this type of application as well, timestamping is essential for the correct functioning of the application, though the medium for the display of time in this case, is not a physical clock. In summary, PoH’s timestamping allows the keeping of the verifiable record of when transactions were carried out on the blockchain with the help of cryptographic methods. History on the blockchain, as it allows for precise synchronization across the network without relying on trust-based systems.

PoH could be represented by encoding time through a cryptographic hash function such as SHA-256. If each event in the chain is timestamped, it can be represented as:

Reduced Messaging Overhead: By minimizing the need for extensive communication between nodes to agree on the order of transactions, PoH reduces network congestion and enhances throughput. This reduction in overhead is particularly beneficial in large, distributed networks where communication latency can significantly impact performance.

Sub-second Finality: Decentralized applications based on BDNs have been widely discussed recently. Even though various types of PoS and PoW are the most popular thus far, the concept can outperform them and make a unique contribution to the infrastructure. First and foremost, the aspect makes it possible to finalize transactions at a fraction of a second. It is said that such speed of finality is critical for several applications, especially those dealing with finances. Users expect their transactions to be confirmed almost immediately. One of the most promising aspects of the new idea is that it is possible to reach such quick finality times without the danger of harming security.

3.3 Consensus Mechanism

The ANM Chain applies the Proof of Stake consensus mechanism, which can be regarded as a more sustainable and scalable option to Proof of Work. In particular, stakers are chosen to be the validators confirming the transactions and addition of new blocks on the basis of the number of locked tokens which serve as collateral. Thus, PoS reduces the energy consumption required by PoW, while also allowing improving the overall effectiveness of the network and consequently lowering the transaction associated costs.

How PoS Works

Staking: One of the basic operations in PoS is staking. It implies that validators commit several of their tokens Pref errant from the PoS variant into a pool of tokens or as a collateral. The more tokens a person stakes, the more significant the probability that they one of the validators chosen to lock transactions and to generate new blocks is. This strategy is used to stimulate validators to interest very significant sums of money in the action aiding the maximal safety and fitness of the network.

Staking Calculation:

Validation: Once selected, validators are responsible for verifying transactions and adding them to the blockchain. The PoS mechanism incentivizes honest behavior among validators by penalizing malicious actors. If a validator behaves dishonestly, they risk losing their staked tokens, which acts as a deterrent against fraudulent activity.

Rewards: Validators are compensated for their efforts through rewards, which typically include transaction fees and newly minted tokens. These rewards provide a continuous incentive for validators to contribute to the network's security and efficiency, ensuring that the network remains robust and secure over time.

Benefits of PoS

Energy Efficiency: The main advantage of PoS over PoW is the energy efficiency. Since PoS requires no computational power to secure the network, when Bitcoin uses huge amounts of power and energy to prove work, PoS operates on a fraction of the power of this proof. This is especially important in the light of the protest the increasing waste of energy and efforts to switch to more efficient and environmentally friendly technologies.

Scalability: The PoS mechanism supports higher transaction throughput and faster block times, which are essential for scaling the network to accommodate a growing number of users and applications. This scalability ensures that ANM Chain can handle increased demand without compromising on performance or user experience.

Security: Staking tokens means that validators must deposit a portion of their coins into the system. Thus, PoS enforces a financial incentive for validators to uphold the best interest of the system. In this way, PoS aligns the economic incentives with the security of the network such that the validators are encouraged to keep the blockchain secure. Subsequently, the tokens in the system remain secure, the system is less likely to suffer from an attack, and the blockchain sustains in future.