The Overledger Network Marketplace
With the launch of the Overledger Network for both Enterprise and Community, we’ve started to lay the foundations of the Network of Networks to become a flourishing ecosystem.
In the preliminary phase of stress testing, we will get a good understanding of the network size and workloads and their interaction and communication with the Treasury. We’re planning to end the stress test shortly and provide all participants direct access to Mainnet DLTs and blockchains by requesting an upgrade to your account in the developer portal.
In this current phase:
- Developers and Gateway Operators can interact with the Treasury
- Establish and use payment channels
- Walkthrough of the example scripts to interact with the Treasury smart contracts
- The difference between your QNT Wallet address and your Operator address
- The nuances between Developer to Treasury payment channels compared Treasury to Gateway payment channels
- Some participants can request Mainnet access on business case and undergoing KYC approval
- Run the examples and scripts located at:
What can you do in the Community Marketplace?
The OVN Marketplace is an ecosystem where data holders and service providers, can advertise and sell services, data, APIs and any other off-chain or on-chain integration or resource you can connect to your gateways for the ecosystem to consume. We are building the Marketplace directory and front-end to start listing services and resources after completion of the stress-test phase.
The Gateway’s service or data is then published to the rest of the network to build applications (mApps) with and for users to consume and use.
You, as the data owner and gateway operator, set the price and the rules for the use of the data or service. You can set the transaction fee in QNT for each service, transaction or event for consumers to buy from you in QNT. This payment of your service or data is managed through the payment channels in the Treasury where you are paid directly to your wallet through the Treasury as the intermediary between buyer and seller. The Treasury facilitates all the transactions between parties and takes a percentage of the transaction as fees.
Payments in the OVN
We released last week the detailed technical article on how payment channels work with the Treasury.
The community treasury allows developers to pay gateway owners QNT to use their resources. As QNT is on the Ethereum blockchain, the community treasury uses uni-directional payment channels to vastly increase transaction throughput as well as minimising transaction fee cost.
Therefore each developer has a uni-directional payment channel open to the community treasury, the community treasury has a uni-directional payment channel open to each Gateway, and the community treasury is responsible for routing payments between the developer and gateway channels.
More detail on Treasury Payment Channels are in the following article: https://medium.com/@quant_network/overledger-network-treasury-d5c9dcebe894
The specifics around payment channels and governance are detailed in the Treasury Design document. https://github.com/quantnetwork/overledger-treasury-community/blob/master/OverledgerNetworkTreasury.pdf
We are also releasing multi-DLT OVN Oracles to help facilitate trade prices between different types of assets, with the aim also to be used by our enterprise and institutional clients part of the OVN ecosystem. OVN Oracles will be available to the rest of the network to consume and use and can be running as treaty contracts, mApps or API based.
Gateway Transaction fees
All gateway operators will be paid in QNT for the transactions and tasks they process. Gateway operators can keep track of the number of tasks they receive by their Gateway in the developer portal and also in their gateway logs.
Each transaction and task received by the Gateway is captured and facilitated by the Treasury through payment channels. The gateway operator is paid a percentage of the transaction by the Treasury, as stated in the previous token utility papers.
For a user or multi-chain app (mApp) owner to join the Overledger Network, they simply pay a non-refundable licence fee and fund a payment channel from themselves to the Treasury. The funds in the payment channel will remain locked for a set period, after which the user can reclaim any remaining amount.
Whenever a user wants to request a function of the Overledger Network, a message will be sent to the Network that includes the function information as well as the related payment. This payment will only be added to the channel by the Treasury if a gateway processes the function before the designated timeout.
For a gateway to join the Overledger Network, gateway owners will pay a non-refundable licence fee. On top of this licence fee, gateway owners will be able to lock up (stake) an increasing amount of QNT for a set period. The higher the fee locked up, the more priority this Gateway will get on the network, in terms of function requests received. A gateway will earn a fee for every function request correctly processed before the response timeout limit. These fees will accumulate in a Treasury to Gateway payment channel, the total of which can be claimed whenever required.
Under normal conditions, a Gateway’s locked up fee will be returned to the Gateway in full at the end of the lock-up period. Only if the Gateway deviates from the Overledger Network communication protocol will some of the locked-up fee not be returned — this will not occur, should the gateway operator run the gateway software provided by Quant Network.
What do Gateway Operators Do?
To help encourage the expansion of the Overledger Network, we are providing users with the opportunity to host their own public Overledger gateways to drive volume and applications to multiple DLTs and blockchains. We envisage, if you already host blockchain nodes and participate in different networks, you can complement your node infrastructure with Overledger Network Gateways and also earn QNT transaction fees on top of your blockchain node rewards and earnings.
By hosting a gateway, stakeholders can earn a percentage of transactions that pass through their Gateway. You have the option to host different tiered Gateways, composing of:
- Tier 1: Overledger Gateway with connectivity to 3 or more blockchain nodes
- Tier 2: Overledger Gateway with connectivity to a single blockchain node
- Tier 3: Overledger Gateway with no blockchain nodes
With subsequent updates in the OVN Gateways, developers and operators will be able to add any type of data sources and resources to their gateway connector and advertise to the rest of the network.
By having unique data sources, resources on the OVN, all requests of that resource will be linked directly to your Gateway to be the designated Gateway for that particular service.
Gateway Open Source Connectors
Working with many distributed ledgers can be a complicated task that puts an educational burden on a developer to understand specific details of many different technological implementations. Quant Network is continually working to make this process easier through the integration of standards both at the SDK and connector level.
By following a strict interface standard, firstly the SDK will be easily interoperable with these new connectors and will do so without adding further educational burden onto the SDK users. Secondly, the output can be compared for consistency between different Overledger gateways connecting to the same source, which will increase the reliability of the network as a whole.
Note that the advantage of open source connectors does not have to be limited to connecting only to new distributed ledgers. This model can be reused to connect to distributed databases, big data providers, APIs and any type of service a gateway wants to provide. We will be publishing the documentation on how to build your own connector after the completion of the stress-test phase.
The integration of open source connectors to the Overledger Network will provide organic ecosystem growth. The increased variety of data sources and services will lead to more complex multiple chain apps being developed, which should, in turn, drive further connectors to be developed.
Gateway operators can also host any blockchain node on their Gateway to enable access to the underlying DLT from their Gateway. As a gateway operator, you have the option to earn OVN transaction fees from the transactions that you process on the OVN and also earn the traditional blockchain staking rewards that you may already have implemented being part of the blockchain network.
If there are multiple blockchain nodes of the same type, you can achieve a higher priority in the transaction list by staking QNT with the Treasury for Overledger to prioritise your Gateway to process transactions.
If you are the only Gateway that has the specific blockchain node advertised to the rest of the OVN, all those specific blockchain transactions will be sent and processed by your Gateway. This is the same approach for data and resources that are served by your Gateway, if you are the only holder and Gateway of that resource, then all transactions for that resource will be sent and processed by your Gateway. We are actively working with Enterprise, Government and Institutional clients to onboard them to the OVN and host their own Enterprise Gateways for their clients, users and citizens. Enabling large scale use-cases for the serving and consuming of data, services and transactions within the OVN ecosystem.
Annual licence costs are paid by developers, gateway operators and enterprise and processed as a payment channel with the Treasury. The annual licence cost’s equivalent in QNT. The OVN Oracle will be providing the pricing for USD to QNT pricing.
Volume and usage fees of transactions are charged separately for the types of volume that is used.
After 12 months of the payment channel expiry, the locked up QNT is returned to the Treasury. The licence for the following 12 months will be needed to be paid in the same way, locked up in the Treasury.
During this lock-up period, in line with regulatory compliance and clearance, we are exploring the possibility to participate in the staking programme where your locked-up license will be able to earn staking rewards facilitated by a regulated 3rd party.
What can you sell and consume on the OVN?
Members of the OVN ecosystem, will be able to buy and consume services, and data with payments handled by the OVN Treasury. OVN will start with support for ETH, BTC and XRP transactions to then start adding other blockchain nodes, API support for open source connectors and off-chain connections and integrations to existing enterprise and internet networks. We are exploring the interconnectivity for IoT, financial services APIs, payments, AI and Machine Learning and consumable data integrations such as financial and corporate information and registries.
To start testing Payment Channels, we will be releasing test QNT to all registered developers and Gateway operators to start creating transactions, open payment channels with the Treasury and test flows for lock-ups, transactions and settlement.
Example Use Case
A Gateway operator has off-chain data of financial data relating to foreign exchange rates and spreads. The data owner sees a market need for other participants to be able to consume FX rates as part of their applications and Marketplace.
The gateway operator decides to integrate this off-chain data for historical USD/GBP FX rates and is selling the data for 1QNT for each day’s rates. All participants of the ecosystem will be able to see the listed service and data offered to buy and consume. OVN network participants can see the advertised data and service, and consume it directly from the Gateway, paying the Operator the price for the data, handled by the Treasury through payment channels.
As volumes of QNT are going to be locked up, we’re exploring our options with new partners and looking at introducing QNT Staking for Gateway operators to opt-in to a staking service, facilitated by the Treasury to make better use of stationary QNT.
Staking is also required for helping prioritise Gateway operators when there are multiple gateways who can transact the same resources. The Gateways that have staked more QNT with the Treasury, will be ranked in terms of priority by the algorithm to determine who will receive the transaction request. This will be ready for after the stress-test period.
We hope you have a clearer view of the possibilities with the OVN, providing an ecosystem of connected networks for developers, gateway operators and users to transact, consume and service all types of data, services, APIs and resources.
We’d love your thoughts and feedback. Please feel free to post your comments and suggestions on our Reddit for further discussion.